Ironwood Pharmaceuticals Inc (IRWD)vsEli Lilly and Company (LLY)
IRWD
Ironwood Pharmaceuticals Inc
$4.15
-1.19%
HEALTHCARE · Cap: $658.76M
LLY
Eli Lilly and Company
$934.60
+9.80%
HEALTHCARE · Cap: $760.43B
Smart Verdict
WallStSmart Research — data-driven comparison
Eli Lilly and Company generates 21909% more annual revenue ($65.18B vs $296.15M). LLY leads profitability with a 31.7% profit margin vs 8.1%. IRWD trades at a lower P/E of 26.9x. LLY earns a higher WallStSmart Score of 78/100 (B+).
IRWD
Hold44
out of 100
Grade: D
LLY
Strong Buy78
out of 100
Grade: B+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+84.4%
Fair Value
$28.51
Current Price
$4.15
$24.36 discount
Intrinsic value data unavailable for LLY.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 1047.0% YoY
Mega-cap, among the largest globally
Every $100 of equity generates 101 in profit
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 44.9%
Revenue surging 42.6% year-over-year
Earnings expanding 51.4% YoY
Areas to Watch
Moderate valuation
Smaller company, higher risk/reward
ROE of -575.0% — below average capital efficiency
Revenue declined 47.3%
Premium valuation, high expectations priced in
Elevated debt levels
Trading at 31.5x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : IRWD
The strongest argument for IRWD centers on EPS Growth.
Bull Case : LLY
The strongest argument for LLY centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 31.7% and operating margin at 44.9%. Revenue growth of 42.6% demonstrates continued momentum.
Bear Case : IRWD
The primary concerns for IRWD are P/E Ratio, Market Cap, Return on Equity.
Bear Case : LLY
The primary concerns for LLY are P/E Ratio, Debt/Equity, Price/Book. Debt-to-equity of 1.60 is elevated, increasing financial risk.
Key Dynamics to Monitor
IRWD profiles as a value stock while LLY is a growth play — different risk/reward profiles.
LLY carries more volatility with a beta of 0.50 — expect wider price swings.
LLY is growing revenue faster at 42.6% — sustainability is the question.
LLY generates stronger free cash flow (678M), providing more financial flexibility.
Bottom Line
LLY scores higher overall (78/100 vs 44/100), backed by strong 31.7% margins and 42.6% revenue growth. IRWD offers better value entry with a 84.4% margin of safety. Both earn "Strong Buy" and "Hold" 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.
Eli Lilly and Company
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Eli Lilly and Company is an American pharmaceutical company headquartered in Indianapolis, Indiana, with offices in 18 countries. Its products are sold in approximately 125 countries.
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