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IRWD vs MRK

IRWD
Ironwood Pharmaceuticals, Inc.
BEARISH
Price
$3.63
Market Cap
$591.9M
Sector
Healthcare
AI Confidence
85%
MRK
Merck & Co., Inc.
NEUTRAL
Price
$121.25
Market Cap
$299.79B
Sector
Healthcare
AI Confidence
90%

Valuation

P/E Ratio
IRWD
24.2
MRK
16.66
Forward P/E
IRWD
2.49
MRK
12.42
P/B Ratio
IRWD
-2.26
MRK
5.7
P/S Ratio
IRWD
2.0
MRK
4.61
EV/EBITDA
IRWD
8.08
MRK
11.46

Profitability

Gross Margin
IRWD
67.88%
MRK
77.21%
Operating Margin
IRWD
13.73%
MRK
32.77%
Profit Margin
IRWD
8.11%
MRK
28.08%
ROE
IRWD
--
MRK
36.88%
ROA
IRWD
19.85%
MRK
12.04%

Growth

Revenue Growth
IRWD
-47.3%
MRK
5.0%
Earnings Growth
IRWD
--
MRK
-19.3%

Financial Health

Debt/Equity
IRWD
--
MRK
0.96
Current Ratio
IRWD
1.13
MRK
1.54
Quick Ratio
IRWD
1.08
MRK
0.96

Dividends

Dividend Yield
IRWD
--
MRK
2.83%
Payout Ratio
IRWD
0.0%
MRK
45.05%

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)
MRK NEUTRAL

MRK shows neutral fundamentals based on deterministic rules. Financial strength is weak (F-Score 3/9). Mixed signals with both opportunities and risks present.

Strengths
Strong profitability (28.1% margin)
Strong ROE of 36.9%
Risks
Premium vs Graham Number ($59.01)
Weak financial trend (Piotroski F-Score: 3/9)

Compare Another Pair

IRWD vs MRK: Head-to-Head Comparison

This page compares Ironwood Pharmaceuticals, Inc. (IRWD) and Merck & Co., Inc. (MRK) 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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