Ironwood Pharmaceuticals Inc (IRWD)vsJohnson & Johnson (JNJ)
IRWD
Ironwood Pharmaceuticals Inc
$3.56
-6.32%
HEALTHCARE · Cap: $610.72M
JNJ
Johnson & Johnson
$255.88
-3.63%
HEALTHCARE · Cap: $615.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Johnson & Johnson generates 26989% more annual revenue ($97.93B vs $361.51M). IRWD leads profitability with a 28.3% profit margin vs 21.5%. IRWD trades at a lower P/E of 6.0x. 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
+86.2%
Fair Value
$32.05
Current Price
$3.56
$28.49 discount
Intrinsic value data unavailable for JNJ.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Strong operational efficiency at 68.1%
Revenue surging 158.9% year-over-year
Earnings expanding 1047.0% YoY
Conservative balance sheet, low leverage
Keeps 28 of every $100 in revenue as profit
Mega-cap, among the largest globally
Every $100 of equity generates 25 in profit
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 28.6%
Generating 3.4B in free cash flow
Areas to Watch
Smaller company, higher risk/reward
ROE of -575.0% — below average capital efficiency
Distress zone — elevated risk
Moderate valuation
Expensive relative to growth rate
Earnings declined 1.0%
Comparative Analysis Report
WallStSmart ResearchBull Case : IRWD
The strongest argument for IRWD centers on P/E Ratio, Operating Margin, Revenue Growth. Profitability is solid with margins at 28.3% and operating margin at 68.1%. Revenue growth of 158.9% 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 21.5% and operating margin at 28.6%.
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, PEG Ratio, EPS Growth.
Key Dynamics to Monitor
IRWD profiles as a growth stock while JNJ is a mature play — different risk/reward profiles.
JNJ carries more volatility with a beta of 0.23 — expect wider price swings.
IRWD is growing revenue faster at 158.9% — sustainability is the question.
JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.
Bottom Line
IRWD scores higher overall (69/100 vs 57/100), backed by strong 28.3% margins and 158.9% 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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