Ironwood Pharmaceuticals Inc (IRWD)vsJohnson & Johnson (JNJ)
IRWD
Ironwood Pharmaceuticals Inc
$3.61
+2.85%
HEALTHCARE · Cap: $571.73M
JNJ
Johnson & Johnson
$271.17
+0.86%
HEALTHCARE · Cap: $615.87B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 25415% more annual revenue ($99.33B vs $389.32M). IRWD leads profitability with a 33.4% profit margin vs 16.2%. IRWD trades at a lower P/E of 4.5x. IRWD earns a higher WallStSmart Score of 69/100 (B-).
IRWD
Strong Buy69
out of 100
Grade: B-
JNJ
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+86.7%
Fair Value
$33.49
Current Price
$3.61
$29.88 discount
Margin of Safety
-83.0%
Fair Value
$144.12
Current Price
$271.17
$127.05 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Keeps 33 of every $100 in revenue as profit
Strong operational efficiency at 70.2%
Revenue surging 32.6% year-over-year
Earnings expanding 125.7% YoY
Conservative balance sheet, low leverage
Mega-cap, among the largest globally
Strong operational efficiency at 25.1%
Generating 6.4B in free cash flow
Areas to Watch
Smaller company, higher risk/reward
ROE of -575.0% — below average capital efficiency
Distress zone — elevated risk
Premium valuation, high expectations priced in
Weak financial health signals
Expensive relative to growth rate
Earnings declined 96.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : IRWD
The strongest argument for IRWD centers on P/E Ratio, Profit Margin, Operating Margin. Profitability is solid with margins at 33.4% and operating margin at 70.2%. Revenue growth of 32.6% demonstrates continued momentum.
Bull Case : JNJ
The strongest argument for JNJ centers on Market Cap, Operating Margin, Free Cash Flow. Profitability is solid with margins at 16.2% and operating margin at 25.1%.
Bear Case : IRWD
The primary concerns for IRWD are Market Cap, Return on Equity, Altman Z-Score.
Bear Case : JNJ
The primary concerns for JNJ are P/E Ratio, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
IRWD profiles as a growth stock while JNJ is a mature play — different risk/reward profiles.
IRWD carries more volatility with a beta of 0.22 — expect wider price swings.
IRWD is growing revenue faster at 32.6% — sustainability is the question.
JNJ generates stronger free cash flow (6.4B), providing more financial flexibility.
Bottom Line
IRWD scores higher overall (69/100 vs 57/100), backed by strong 33.4% margins and 32.6% revenue growth. Both earn "Strong Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Ironwood Pharmaceuticals Inc
HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA
Ironwood Pharmaceuticals, Inc., a healthcare company, focuses on the development and commercialization of gastrointestinal (GI) products. The company is headquartered in Boston, Massachusetts.
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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