WallStSmart

Ironwood Pharmaceuticals Inc (IRWD)vsEli Lilly and Company (LLY)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Eli Lilly and Company generates 19885% more annual revenue ($72.25B vs $361.51M). LLY leads profitability with a 35.0% profit margin vs 28.3%. IRWD trades at a lower P/E of 5.3x. LLY earns a higher WallStSmart Score of 78/100 (B+).

IRWD

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 8.0Value: 8.3Quality: 5.5
Piotroski: 4/9Altman Z: -4.21

LLY

Strong Buy

78

out of 100

Grade: B+

Growth: 10.0Profit: 10.0Value: 5.0Quality: 6.0
Piotroski: 6/9Altman Z: 2.06
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

IRWDUndervalued (+86.3%)

Margin of Safety

+86.3%

Fair Value

$32.43

Current Price

$3.31

$29.12 discount

UndervaluedFair: $32.43Overvalued

Intrinsic value data unavailable for LLY.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

IRWD6 strengths · Avg: 9.8/10
P/E RatioValuation
5.3x10/10

Attractively priced relative to earnings

Operating MarginProfitability
68.1%10/10

Strong operational efficiency at 68.1%

Revenue GrowthGrowth
158.9%10/10

Revenue surging 158.9% year-over-year

EPS GrowthGrowth
1047.0%10/10

Earnings expanding 1047.0% YoY

Debt/EquityHealth
-2.7510/10

Conservative balance sheet, low leverage

Profit MarginProfitability
28.3%9/10

Keeps 28 of every $100 in revenue as profit

LLY6 strengths · Avg: 10.0/10
Market CapQuality
$948.95B10/10

Mega-cap, among the largest globally

Return on EquityProfitability
81.0%10/10

Every $100 of equity generates 81 in profit

Profit MarginProfitability
35.0%10/10

Keeps 35 of every $100 in revenue as profit

Operating MarginProfitability
49.4%10/10

Strong operational efficiency at 49.4%

Revenue GrowthGrowth
55.5%10/10

Revenue surging 55.5% year-over-year

EPS GrowthGrowth
169.9%10/10

Earnings expanding 169.9% YoY

Areas to Watch

IRWD3 concerns · Avg: 2.3/10
Market CapQuality
$544.87M3/10

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

LLY3 concerns · Avg: 3.0/10
P/E RatioValuation
37.7x4/10

Premium valuation, high expectations priced in

Debt/EquityHealth
1.393/10

Elevated debt levels

Price/BookValuation
32.4x2/10

Trading at 32.4x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : IRWD

The strongest argument for IRWD centers on P/E Ratio, Operating Margin, Revenue Growth. Profitability is solid with margins at 28.3% and operating margin at 68.1%. Revenue growth of 158.9% demonstrates continued momentum.

Bull Case : LLY

The strongest argument for LLY centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 35.0% and operating margin at 49.4%. Revenue growth of 55.5% demonstrates continued momentum.

Bear Case : IRWD

The primary concerns for IRWD are Market Cap, Return on Equity, Altman Z-Score.

Bear Case : LLY

The primary concerns for LLY are P/E Ratio, Debt/Equity, Price/Book.

Key Dynamics to Monitor

LLY carries more volatility with a beta of 0.48 — expect wider price swings.

IRWD is growing revenue faster at 158.9% — sustainability is the question.

LLY generates stronger free cash flow (3.0B), providing more financial flexibility.

Monitor DRUG MANUFACTURERS - SPECIALTY & GENERIC industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LLY scores higher overall (78/100 vs 69/100), backed by strong 35.0% margins and 55.5% revenue growth. IRWD offers better value entry with a 86.3% margin of safety. Both earn "Strong Buy" and "Strong 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.

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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