WallStSmart

Ironwood Pharmaceuticals Inc (IRWD)vsZoetis Inc (ZTS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Zoetis Inc generates 2347% more annual revenue ($9.53B vs $389.32M). IRWD leads profitability with a 33.4% profit margin vs 27.7%. IRWD trades at a lower P/E of 5.4x. 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: 7.0
Piotroski: 4/9Altman Z: -4.21

ZTS

Buy

58

out of 100

Grade: C

Growth: 4.0Profit: 10.0Value: 6.0Quality: 7.0
Piotroski: 4/9Altman Z: 3.14
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

IRWDUndervalued (+86.9%)

Margin of Safety

+86.9%

Fair Value

$33.87

Current Price

$4.08

$29.79 discount

UndervaluedFair: $33.87Overvalued
ZTSUndervalued (+11.3%)

Margin of Safety

+11.3%

Fair Value

$145.00

Current Price

$72.97

$72.03 discount

UndervaluedFair: $145.00Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

IRWD6 strengths · Avg: 10.0/10
P/E RatioValuation
5.4x10/10

Attractively priced relative to earnings

Profit MarginProfitability
33.4%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
70.2%10/10

Strong operational efficiency at 70.2%

Revenue GrowthGrowth
32.6%10/10

Revenue surging 32.6% year-over-year

EPS GrowthGrowth
125.7%10/10

Earnings expanding 125.7% YoY

Debt/EquityHealth
-2.4510/10

Conservative balance sheet, low leverage

ZTS5 strengths · Avg: 9.8/10
P/E RatioValuation
12.0x10/10

Attractively priced relative to earnings

Return on EquityProfitability
83.1%10/10

Every $100 of equity generates 83 in profit

Operating MarginProfitability
40.7%10/10

Strong operational efficiency at 40.7%

Altman Z-ScoreHealth
3.1410/10

Safe zone — low bankruptcy risk

Profit MarginProfitability
27.7%9/10

Keeps 28 of every $100 in revenue as profit

Areas to Watch

IRWD3 concerns · Avg: 2.3/10
Market CapQuality
$728.71M3/10

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: 3.0/10
Price/BookValuation
9.3x4/10

Trading at 9.3x book value

EPS GrowthGrowth
1.2%4/10

1.2% earnings growth

PEG RatioValuation
7.052/10

Expensive relative to growth rate

Revenue GrowthGrowth
-0.2%2/10

Revenue declined 0.2%

Comparative Analysis Report

WallStSmart Research

Bull 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 : ZTS

The strongest argument for ZTS centers on P/E Ratio, Return on Equity, Operating Margin. Profitability is solid with margins at 27.7% and operating margin at 40.7%.

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 Price/Book, EPS Growth, PEG Ratio. Debt-to-equity of 2.93 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

ZTS carries more volatility with a beta of 0.73 — expect wider price swings.

IRWD is growing revenue faster at 32.6% — sustainability is the question.

ZTS generates stronger free cash flow (538M), providing more financial flexibility.

Bottom Line

IRWD scores higher overall (69/100 vs 58/100), 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.

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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