Iterum Therapeutics (NASDAQ:ITRM) & Arcutis Biotherapeutics (NASDAQ:ARQT) Head to Head Survey

Iterum Therapeutics (NASDAQ:ITRM) and Arcutis Biotherapeutics (NASDAQ:ARQT) are both healthcare companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, valuation, risk, profitability, dividends, earnings and analyst recommendations.

Valuation and Earnings

This table compares Iterum Therapeutics and Arcutis Biotherapeutics”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Iterum Therapeutics	$390,000.00	4.10	-$24.77 million	($0.75)	-0.04
Arcutis Biotherapeutics	$376.07 million	8.99	-$16.14 million	$0.21	128.02

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

Risk & Volatility

Iterum Therapeutics has a beta of 2.96, indicating that its share price is 196% more volatile than the S&P 500. Comparatively, Arcutis Biotherapeutics has a beta of 1.5, indicating that its share price is 50% more volatile than the S&P 500.

Profitability

This table compares Iterum Therapeutics and Arcutis Biotherapeutics’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Iterum Therapeutics	N/A	N/A	-65.54%
Arcutis Biotherapeutics	6.15%	15.05%	6.51%

Analyst Recommendations

This is a breakdown of recent ratings and price targets for Iterum Therapeutics and Arcutis Biotherapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Iterum Therapeutics	1	2	0	0	1.67
Arcutis Biotherapeutics	0	3	6	0	2.67

Arcutis Biotherapeutics has a consensus price target of $35.57, suggesting a potential upside of 32.31%. Given Arcutis Biotherapeutics’ stronger consensus rating and higher probable upside, analysts clearly believe Arcutis Biotherapeutics is more favorable than Iterum Therapeutics.

Insider and Institutional Ownership

9.2% of Iterum Therapeutics shares are owned by institutional investors. 2.0% of Iterum Therapeutics shares are owned by insiders. Comparatively, 9.4% of Arcutis Biotherapeutics shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Arcutis Biotherapeutics beats Iterum Therapeutics on 12 of the 14 factors compared between the two stocks.

About Iterum Therapeutics

Iterum Therapeutics plc, a clinical-stage pharmaceutical company, engages in developing and commercializing anti-infectives in Ireland, Bermuda, and the United States. It is developing sulopenem, a novel anti-infective compound with oral and intravenous formulations that is in Phase III clinical trials for the treatment of uncomplicated urinary tract infections, complicated urinary tract infections, and complicated intra-abdominal infections. The company was incorporated in 2015 and is headquartered in Dublin, Ireland.

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.