WallStSmart

iRhythm Technologies Inc (IRTC)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 12797% more annual revenue ($96.36B vs $747.14M). JNJ leads profitability with a 21.8% profit margin vs -6.0%. JNJ earns a higher WallStSmart Score of 59/100 (C).

IRTC

Avoid

31

out of 100

Grade: F

Growth: 7.3Profit: 2.5Value: 4.0Quality: 5.8
Piotroski: 4/9Altman Z: 0.31

JNJ

Buy

59

out of 100

Grade: C

Growth: 4.7Profit: 9.0Value: 3.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

IRTCSignificantly Overvalued (-55.9%)

Margin of Safety

-55.9%

Fair Value

$97.56

Current Price

$129.16

$31.60 premium

UndervaluedFair: $97.56Overvalued
JNJSignificantly Overvalued (-43.5%)

Margin of Safety

-43.5%

Fair Value

$160.13

Current Price

$229.85

$69.72 premium

UndervaluedFair: $160.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

IRTC1 strengths · Avg: 8.0/10
Revenue GrowthGrowth
27.1%8/10

Revenue surging 27.1% year-over-year

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$547.28B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
26.4%9/10

Every $100 of equity generates 26 in profit

Profit MarginProfitability
21.8%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
27.4%8/10

Strong operational efficiency at 27.4%

Free Cash FlowQuality
$1.47B8/10

Generating 1.5B in free cash flow

Areas to Watch

IRTC4 concerns · Avg: 2.8/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Operating MarginProfitability
4.2%3/10

Operating margin of 4.2%

Price/BookValuation
27.3x2/10

Trading at 27.3x book value

Return on EquityProfitability
-36.6%2/10

ROE of -36.6% — below average capital efficiency

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
26.3x4/10

Moderate valuation

PEG RatioValuation
2.962/10

Expensive relative to growth rate

EPS GrowthGrowth
-52.9%2/10

Earnings declined 52.9%

Comparative Analysis Report

WallStSmart Research

Bull Case : IRTC

The strongest argument for IRTC centers on Revenue Growth. Revenue growth of 27.1% demonstrates continued momentum.

Bull Case : JNJ

The strongest argument for JNJ centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 21.8% and operating margin at 27.4%.

Bear Case : IRTC

The primary concerns for IRTC are EPS Growth, Operating Margin, Price/Book.

Bear Case : JNJ

The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

IRTC profiles as a growth stock while JNJ is a mature play — different risk/reward profiles.

IRTC carries more volatility with a beta of 1.18 — expect wider price swings.

IRTC is growing revenue faster at 27.1% — sustainability is the question.

JNJ generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (59/100 vs 31/100), backed by strong 21.8% margins. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

iRhythm Technologies Inc

HEALTHCARE · MEDICAL DEVICES · USA

iRhythm Technologies, Inc., a digital healthcare company, offers ambulatory electrocardiogram (ECG) monitoring products for patients at risk for arrhythmias in the United States. The company is headquartered in San Francisco, California.

Johnson & Johnson

HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA

Johnson & Johnson (J&J) is an American multinational corporation founded in 1886 that develops medical devices, pharmaceuticals, and consumer packaged goods. Its common stock is a component of the Dow Jones Industrial Average and the company is ranked No. 36 on the 2021 Fortune 500 list of the largest United States corporations by total revenue. Johnson & Johnson is one of the world's most valuable companies, and is one of only two U.S.-based companies that has a prime credit rating of AAA, higher than that of the United States government.

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