Ascend Wellness (OTCMKTS:AAWH) vs. Arcutis Biotherapeutics (NASDAQ:ARQT) Financial Analysis

Ascend Wellness (OTCMKTS:AAWH – Get Free Report) and Arcutis Biotherapeutics (NASDAQ:ARQT – Get Free Report) are both healthcare companies, but which is the better business? We will contrast the two businesses based on the strength of their dividends, analyst recommendations, risk, institutional ownership, earnings, valuation and profitability.

Valuation & Earnings

This table compares Ascend Wellness and Arcutis Biotherapeutics”s revenue, earnings per share and valuation.

Arcutis Biotherapeutics has lower revenue, but higher earnings than Ascend Wellness. Ascend Wellness is trading at a lower price-to-earnings ratio than Arcutis Biotherapeutics, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Ascend Wellness and Arcutis Biotherapeutics’ net margins, return on equity and return on assets.

Institutional and Insider Ownership

17.3% of Ascend Wellness shares are held by institutional investors. 21.9% of Ascend Wellness shares are held by insiders. Comparatively, 9.4% of Arcutis Biotherapeutics shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of recent recommendations for Ascend Wellness and Arcutis Biotherapeutics, as reported by MarketBeat.com.

Arcutis Biotherapeutics has a consensus target price of $38.00, suggesting a potential upside of 21.79%. Given Arcutis Biotherapeutics’ stronger consensus rating and higher probable upside, analysts plainly believe Arcutis Biotherapeutics is more favorable than Ascend Wellness.

Volatility and Risk

Ascend Wellness has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500. Comparatively, Arcutis Biotherapeutics has a beta of 1.57, meaning that its stock price is 57% more volatile than the S&P 500.

Summary

Arcutis Biotherapeutics beats Ascend Wellness on 11 of the 14 factors compared between the two stocks.

About Ascend Wellness

(Get Free Report)

Ascend Wellness Holdings, Inc. engages in the cultivation, manufacture, and distribution of cannabis consumer packaged goods in the United States. The company offers flower, pre-rolls, concentrates, vapes, edibles, tinctures, and other cannabis-related products under the Common Goods, SimplyHerb, Ozone, Ozone Reserve, Royale, Tunnel Vision, Miss Grass, Lowell Smokes, Edie Parker, 1906, and AiroPro brands. It also owns, operates, and manages cannabis cultivation facilities and dispensaries. The company sells its products through company-owned retail stores and third-party licensed retail cannabis stores. Ascend Wellness Holdings, Inc. was incorporated in 2018 and is headquartered in New York, New York.

About Arcutis Biotherapeutics

(Get Free Report)

Arcutis Biotherapeutics, Inc., a biopharmaceutical company, focuses on developing and commercializing treatments for dermatological diseases. Its lead product candidate is ARQ-151, a topical roflumilast cream that has completed Phase III clinical trials for the treatment of plaque psoriasis and atopic dermatitis. The company is also developing ARQ-154, a topical ZORYVE for the treatment of scalp and body psoriasis and seborrheic dermatitis; ARQ-252, a selective topical janus kinase type 1 inhibitor for hand eczema and vitiligo; ARQ-255, a topical JAK1 inhibitor for alopecia areata; and ARQ-234, a CD200R fusion protein for the treatment of moderate-to-severe atopic dermatitis. The company was formerly known as Arcutis, Inc. and changed its name to Arcutis Biotherapeutics, Inc. in October 2019. Arcutis Biotherapeutics, Inc. was incorporated in 2016 and is headquartered in Westlake Village, California.