Arcutis Biotherapeutics (NASDAQ:ARQT) vs. CannaPharmaRX (OTCMKTS:CPMD) Head-To-Head Analysis

CannaPharmaRX (OTCMKTS:CPMD) and Arcutis Biotherapeutics (NASDAQ:ARQT) are both small-cap medical companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.

Risk and Volatility

CannaPharmaRX has a beta of 2.36, meaning that its stock price is 136% more volatile than the S&P 500. Comparatively, Arcutis Biotherapeutics has a beta of 1.18, meaning that its stock price is 18% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CannaPharmaRX	N/A	N/A	-40.68%
Arcutis Biotherapeutics	-204.35%	-197.28%	-60.67%

Analyst Recommendations

This is a summary of recent ratings for CannaPharmaRX and Arcutis Biotherapeutics, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CannaPharmaRX	0	0	0	0	N/A
Arcutis Biotherapeutics	0	2	6	0	2.75

Arcutis Biotherapeutics has a consensus target price of $25.38, suggesting a potential upside of 164.32%. Given Arcutis Biotherapeutics’ higher probable upside, analysts clearly believe Arcutis Biotherapeutics is more favorable than CannaPharmaRX.

Valuation and Earnings

This table compares CannaPharmaRX and Arcutis Biotherapeutics’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CannaPharmaRX	N/A	N/A	$3.69 million	($0.01)	-1.10
Arcutis Biotherapeutics	$59.61 million	18.64	-$262.14 million	($2.93)	-3.28

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

Summary

CannaPharmaRX beats Arcutis Biotherapeutics on 7 of the 10 factors compared between the two stocks.

About CannaPharmaRX

CannaPharmaRX, Inc. operates in the cannabis industry in Canada. It evaluates, negotiates, acquires, and develops various cannabis cultivation projects. The company was incorporated in 1998 and is based in Calgary, Canada.

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.