WallStSmart

iRhythm Technologies Inc (IRTC)vsJohnson & Johnson (JNJ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Johnson & Johnson generates 12330% more annual revenue ($97.93B vs $787.85M). JNJ leads profitability with a 21.5% profit margin vs -3.5%. JNJ earns a higher WallStSmart Score of 57/100 (C).

IRTC

Avoid

30

out of 100

Grade: F

Growth: 7.3Profit: 2.0Value: 5.0Quality: 5.0
Piotroski: 4/9Altman Z: 0.28

JNJ

Buy

57

out of 100

Grade: C

Growth: 4.7Profit: 8.5Value: 4.3Quality: 6.0
Piotroski: 4/9Altman Z: 2.64

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

IRTC1 strengths · Avg: 8.0/10
Revenue GrowthGrowth
25.7%8/10

Revenue surging 25.7% year-over-year

JNJ5 strengths · Avg: 8.8/10
Market CapQuality
$615.36B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
24.8%9/10

Every $100 of equity generates 25 in profit

Profit MarginProfitability
21.5%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
28.6%8/10

Strong operational efficiency at 28.6%

Free Cash FlowQuality
$3.39B8/10

Generating 3.4B in free cash flow

Areas to Watch

IRTC4 concerns · Avg: 2.5/10
EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Price/BookValuation
24.9x2/10

Trading at 24.9x book value

Return on EquityProfitability
-17.2%2/10

ROE of -17.2% — below average capital efficiency

Free Cash FlowQuality
$-33.08M2/10

Negative free cash flow — burning cash

JNJ3 concerns · Avg: 2.7/10
P/E RatioValuation
29.1x4/10

Moderate valuation

PEG RatioValuation
4.142/10

Expensive relative to growth rate

EPS GrowthGrowth
-1.0%2/10

Earnings declined 1.0%

Comparative Analysis Report

WallStSmart Research

Bull Case : IRTC

The strongest argument for IRTC centers on Revenue Growth. Revenue growth of 25.7% 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 : IRTC

The primary concerns for IRTC are EPS Growth, Price/Book, Return on Equity. Debt-to-equity of 4.52 is elevated, increasing financial risk.

Bear Case : JNJ

The primary concerns for JNJ are P/E Ratio, PEG Ratio, EPS Growth.

Key Dynamics to Monitor

IRTC profiles as a growth stock while JNJ is a mature play — different risk/reward profiles.

IRTC carries more volatility with a beta of 1.27 — expect wider price swings.

IRTC is growing revenue faster at 25.7% — sustainability is the question.

JNJ generates stronger free cash flow (3.4B), providing more financial flexibility.

Bottom Line

JNJ scores higher overall (57/100 vs 30/100), backed by strong 21.5% margins. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

iRhythm Technologies Inc

HEALTHCARE · MEDICAL DEVICES · USA

iRhythm Technologies, Inc., a digital healthcare company, offers ambulatory electrocardiogram (ECG) monitoring products for patients at risk for arrhythmias in the United States. The company is headquartered in San Francisco, California.

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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