The Iron slug does have an interesting quality of "small blast radius on direct hits", but it would also lose the chance to stun enemies.
The Iron slug would be a good all-purpose gun, but I already have a Valliance (UV Undead Med) for that.
I'm rather confused on which one to make.
Both the Callahan and the iron slug have a small blast radius, and like the rest of the magnus line are excellent at hitting opponents that dodge like wolvers & devilites - the main difference is the iron slug does normal damage and sucks ass, whilst the Callahan does piercing damage - pretty much everything you need a Magnus style weapon to hit is weak or neutral to piercing, and it stuns.
No contest really, there is nothing the iron slug does that another gun can't do better.