Aced the SAT? Try this Cramer question

If you have a penchant for quizzes and such, Jim Cramer thinks this question could lead you to a solid stock idea. That is, if you get it right.

Think back to that SAT test in high school, but unlike those esoteric questions, Cramer says this one has real world application.

Here it is:

McDonald's is to Chipotle as GlaxoSmithKline is to:
a. Celgene
b. Gilead
c. Biogen–Idec
d. Regeneron
e. all of the above.

Tetra Images | Getty Images

The correct answer is e. All of the above.

As you may remember, the objective of these questions is to establish relationships. Looking at McDonald's and Chipotle, Cramer says the former company is struggling because it's serving food that's behind the times. The latter is thriving because it's on trend, in this case, and offering higher quality food.

Turning attention to GlaxoSmithKline, Cramer said, "Glaxo is the pharmaceutical sector equivalent of McDonald's with dwindling sales of an anti-asthma drug called Advair, and a heart medicine called Lovaza. To me it feels a lot like the trajectory of the Big Mac."

Conversely, Cramer noted that all the biotech companies listed above are thriving due to their groundbreaking medical discoveries. "There are patented products from Biogen, which reported spectacular numbers today; the hep C treatment from Gilead; Celgene has a promising treatment for blood cancers, and Regeneron has Eyela, an important drug for patients with macular degeneration."

Read more from Mad Money with Jim Cramer
Cramer: Chipotle, McDonald's telegraph food trend
715% advance in under 5 years, really!
Cramer slices into Apple earnings

Although Cramer often says a dividend increase or buyback could boost McDonald's or Glaxo, if you're putting money to work for the long-term, he advocates buying growth. And, growth can be found in companies such as Chipotle, Biogen, Gilead, Celgene and Regeneron.

"Yep, the four horsemen of the big pharma apocalypse and the lone gunman of fast food are the winners and they are making losers out of the old guard titans like Glaxo and McDonald's right before our eyes," said Cramer.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the "Mad Money" website? madcap@cnbc.com

Contact Mad Money

  • Showtimes

    Monday - Friday 6p ET
    Saturday 8a, 1p, 7p SYD
    Sunday 12a, 1a, 8a, 7p SYD
    New Zealand
    Saturday 10a, 3p, 9p NZ
    Sunday 2a, 3a, 10a, 9p NZ
  • Jim Cramer

    Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.

Mad Money Moments

Cramer's New Book