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IRWD vs JNJ

IRWD
Ironwood Pharmaceuticals, Inc.
BEARISH
Price
$3.63
Market Cap
$591.9M
Sector
Healthcare
AI Confidence
85%
JNJ
Johnson & Johnson
NEUTRAL
Price
$237.96
Market Cap
$573.46B
Sector
Healthcare
AI Confidence
85%

Valuation

P/E Ratio
IRWD
24.2
JNJ
21.55
Forward P/E
IRWD
2.49
JNJ
18.9
P/B Ratio
IRWD
-2.26
JNJ
7.03
P/S Ratio
IRWD
2.0
JNJ
6.09
EV/EBITDA
IRWD
8.08
JNJ
17.81

Profitability

Gross Margin
IRWD
67.88%
JNJ
68.08%
Operating Margin
IRWD
13.73%
JNJ
23.97%
Profit Margin
IRWD
8.11%
JNJ
28.46%
ROE
IRWD
--
JNJ
35.03%
ROA
IRWD
19.85%
JNJ
8.68%

Growth

Revenue Growth
IRWD
-47.3%
JNJ
9.1%
Earnings Growth
IRWD
--
JNJ
48.6%

Financial Health

Debt/Equity
IRWD
--
JNJ
0.6
Current Ratio
IRWD
1.13
JNJ
1.03
Quick Ratio
IRWD
1.08
JNJ
0.69

Dividends

Dividend Yield
IRWD
--
JNJ
2.19%
Payout Ratio
IRWD
0.0%
JNJ
46.6%

AI Verdict

IRWD BEARISH

Ironwood Pharmaceuticals presents a high-risk profile characterized by a stable but mediocre Piotroski F-Score of 4/9 and a critical lack of equity, as evidenced by a negative Price/Book ratio of -2.26. While the stock has seen a massive 1-year price surge, this is fundamentally unsupported by a 47.3% collapse in year-over-year revenue and a significant disconnect between the current price ($3.63) and the growth-based intrinsic value ($1.05). Heavy insider selling totaling nearly $22 million further signals a lack of confidence from company leadership.

Strengths
Strong gross margins (67.88%)
Positive operating margin (13.73%)
Recent 1-year price momentum (+259.4%)
Risks
Negative shareholders' equity (Price/Book: -2.26)
Severe revenue contraction (-47.3% YoY)
Significant overvaluation relative to intrinsic value ($3.63 vs $1.05)
JNJ NEUTRAL

JNJ presents a dichotomy between strong profitability and deteriorating fundamental health, evidenced by a weak Piotroski F-Score of 3/9. While the company maintains an impressive ROE of 35.03% and a consistent history of earnings beats, the current price of $237.96 trades at a significant premium to its Graham Number of $91.72. Growth remains robust on a YoY basis, but bearish insider sentiment and a very weak technical trend (10/100) suggest immediate headwinds. The stock is fundamentally sound in terms of earnings power but shows signs of operational inefficiency or declining quality in its deterministic health metrics.

Strengths
Exceptional Return on Equity (ROE) of 35.03%
Strong profit margins (28.46%) and gross margins (68.08%)
Consistent earnings beat track record over 25 quarters
Risks
Weak Piotroski F-Score (3/9) indicating declining fundamental health
Bearish insider activity with $58.35M in net sales and zero buys
Low liquidity indicated by a Quick Ratio of 0.69

Compare Another Pair

IRWD vs JNJ: Head-to-Head Comparison

This page compares Ironwood Pharmaceuticals, Inc. (IRWD) and Johnson & Johnson (JNJ) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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