Arcutis Biotherapeutics (NASDAQ:ARQT) versus ProPhase Labs (NASDAQ:PRPH) Critical Survey

Arcutis Biotherapeutics (NASDAQ:ARQT) and ProPhase Labs (NASDAQ:PRPH) are both small-cap medical companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, earnings, valuation, dividends, institutional ownership and risk.

Earnings and Valuation

This table compares Arcutis Biotherapeutics and ProPhase Labs”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Arcutis Biotherapeutics	$59.61 million	19.50	-$262.14 million	($1.79)	-5.55
ProPhase Labs	$44.38 million	0.32	-$16.78 million	($1.21)	-0.62

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

Profitability

This table compares Arcutis Biotherapeutics and ProPhase Labs’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Arcutis Biotherapeutics	-140.97%	-119.11%	-45.95%
ProPhase Labs	-146.39%	-54.04%	-28.65%

Volatility & Risk

Arcutis Biotherapeutics has a beta of 1.18, meaning that its share price is 18% more volatile than the S&P 500. Comparatively, ProPhase Labs has a beta of -0.1, meaning that its share price is 110% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Arcutis Biotherapeutics and ProPhase Labs, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Arcutis Biotherapeutics	0	1	3	0	2.75
ProPhase Labs	0	0	1	0	3.00

Arcutis Biotherapeutics presently has a consensus price target of $15.50, suggesting a potential upside of 56.09%. ProPhase Labs has a consensus price target of $11.00, suggesting a potential upside of 1,363.93%. Given ProPhase Labs’ stronger consensus rating and higher possible upside, analysts plainly believe ProPhase Labs is more favorable than Arcutis Biotherapeutics.

Institutional and Insider Ownership

9.5% of ProPhase Labs shares are held by institutional investors. 9.5% of Arcutis Biotherapeutics shares are held by company insiders. Comparatively, 20.7% of ProPhase Labs shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

ProPhase Labs beats Arcutis Biotherapeutics on 9 of the 14 factors compared between the two stocks.

About Arcutis Biotherapeutics

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.

About ProPhase Labs

ProPhase Labs, Inc. develops and commercializes novel drugs, dietary supplements, and compounds in the United States. It operates through two segments: Diagnostic Services and Consumer Products. The company provides a range of TK supplements, including Legendz XL for male sexual health; and Triple Edge XL, an energy and stamina booster. It offers contract manufacturing services, such as product development, pre-commercialization, production, warehousing, and distribution; COVID-19 diagnostic information services to a range of customers, including health plans, third party payers, and government organizations; and respiratory pathogen panel molecular testing services, as well as personal genomics products and services. In addition, the company involved in the research, development, manufacture, distribution, marketing, and sale of over the counter (OTC) consumer healthcare products and dietary supplements; and retail operations. The company was formerly known as The Quigley Corporation. ProPhase Labs, Inc. was founded in 1989 and is headquartered in Garden City, New York.