WallStSmart

Ironwood Pharmaceuticals Inc (IRWD)vsZoetis Inc (ZTS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Zoetis Inc generates 2536% more annual revenue ($9.53B vs $361.51M). IRWD leads profitability with a 28.3% profit margin vs 28.0%. IRWD trades at a lower P/E of 5.3x. IRWD earns a higher WallStSmart Score of 69/100 (B-).

IRWD

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 8.3Quality: 5.5
Piotroski: 4/9Altman Z: -4.21

ZTS

Strong Buy

66

out of 100

Grade: B-

Growth: 5.3Profit: 10.0Value: 6.0Quality: 7.0
Piotroski: 4/9Altman Z: 3.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

IRWDUndervalued (+86.3%)

Margin of Safety

+86.3%

Fair Value

$32.43

Current Price

$3.31

$29.12 discount

UndervaluedFair: $32.43Overvalued
ZTSUndervalued (+11.8%)

Margin of Safety

+11.8%

Fair Value

$145.86

Current Price

$79.44

$66.42 discount

UndervaluedFair: $145.86Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

IRWD6 strengths · Avg: 9.8/10
P/E RatioValuation
5.3x10/10

Attractively priced relative to earnings

Operating MarginProfitability
68.1%10/10

Strong operational efficiency at 68.1%

Revenue GrowthGrowth
158.9%10/10

Revenue surging 158.9% year-over-year

EPS GrowthGrowth
1047.0%10/10

Earnings expanding 1047.0% YoY

Debt/EquityHealth
-2.7510/10

Conservative balance sheet, low leverage

Profit MarginProfitability
28.3%9/10

Keeps 28 of every $100 in revenue as profit

ZTS5 strengths · Avg: 9.4/10
Return on EquityProfitability
81.8%10/10

Every $100 of equity generates 82 in profit

Operating MarginProfitability
36.6%10/10

Strong operational efficiency at 36.6%

Altman Z-ScoreHealth
3.1410/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
28.0%9/10

Keeps 28 of every $100 in revenue as profit

P/E RatioValuation
13.0x8/10

Attractively priced relative to earnings

Areas to Watch

IRWD3 concerns · Avg: 2.3/10
Market CapQuality
$544.87M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-575.0%2/10

ROE of -575.0% — below average capital efficiency

Altman Z-ScoreHealth
-4.212/10

Distress zone — elevated risk

ZTS4 concerns · Avg: 3.3/10
PEG RatioValuation
1.914/10

Expensive relative to growth rate

Price/BookValuation
10.1x4/10

Trading at 10.1x book value

Revenue GrowthGrowth
2.9%4/10

2.9% revenue growth

Debt/EquityHealth
2.861/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull 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 : ZTS

The strongest argument for ZTS centers on Return on Equity, Operating Margin, Altman Z-Score. Profitability is solid with margins at 28.0% and operating margin at 36.6%.

Bear Case : IRWD

The primary concerns for IRWD are Market Cap, Return on Equity, Altman Z-Score.

Bear Case : ZTS

The primary concerns for ZTS are PEG Ratio, Price/Book, Revenue Growth. Debt-to-equity of 2.86 is elevated, increasing financial risk.

Key Dynamics to Monitor

IRWD profiles as a growth stock while ZTS is a value play — different risk/reward profiles.

ZTS carries more volatility with a beta of 0.74 — expect wider price swings.

IRWD is growing revenue faster at 158.9% — sustainability is the question.

ZTS generates stronger free cash flow (291M), providing more financial flexibility.

Bottom Line

IRWD scores higher overall (69/100 vs 66/100), backed by strong 28.3% margins and 158.9% revenue growth. Both earn "Strong Buy" and "Strong 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.

Zoetis Inc

HEALTHCARE · DRUG MANUFACTURERS - SPECIALTY & GENERIC · USA

Zoetis Inc. is an American drug company, the world's largest producer of medicine and vaccinations for pets and livestock.

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