Smith AO Corporation (AOS)vsIllinois Tool Works Inc (ITW)
AOS
Smith AO Corporation
$57.39
+1.20%
INDUSTRIALS · Cap: $7.99B
ITW
Illinois Tool Works Inc
$268.16
+1.12%
INDUSTRIALS · Cap: $76.37B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 333% more annual revenue ($16.47B vs $3.80B). ITW leads profitability with a 19.4% profit margin vs 13.2%. AOS appears more attractively valued with a PEG of 1.43. ITW earns a higher WallStSmart Score of 62/100 (C+).
AOS
Buy55
out of 100
Grade: C
ITW
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-1.9%
Fair Value
$78.76
Current Price
$57.39
$21.37 premium
Intrinsic value data unavailable for ITW.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Safe zone — low bankruptcy risk
Every $100 of equity generates 28 in profit
Attractively priced relative to earnings
Every $100 of equity generates 110 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 26.9%
Areas to Watch
Revenue declined 0.7%
Earnings declined 15.0%
Expensive relative to growth rate
Weak financial health signals
Trading at 26.4x book value
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : AOS
The strongest argument for AOS centers on Altman Z-Score, Return on Equity, P/E Ratio. PEG of 1.43 suggests the stock is reasonably priced for its growth.
Bull Case : ITW
The strongest argument for ITW centers on Return on Equity, Altman Z-Score, Market Cap. Profitability is solid with margins at 19.4% and operating margin at 26.9%.
Bear Case : AOS
The primary concerns for AOS are Revenue Growth, EPS Growth.
Bear Case : ITW
The primary concerns for ITW are PEG Ratio, Piotroski F-Score, Price/Book. Debt-to-equity of 3.35 is elevated, increasing financial risk.
Key Dynamics to Monitor
AOS profiles as a declining stock while ITW is a mature play — different risk/reward profiles.
AOS carries more volatility with a beta of 1.15 — expect wider price swings.
ITW is growing revenue faster at 6.1% — sustainability is the question.
ITW generates stronger free cash flow (631M), providing more financial flexibility.
Bottom Line
ITW scores higher overall (62/100 vs 55/100), backed by strong 19.4% margins. Both earn "Buy" and "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.
Smith AO Corporation
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
A. O. Smith Corporation is an American manufacturer of both residential and commercial water heaters and boilers and the largest manufacturer and marketer of water heaters in North America. It also supplies water treatment products in the Asian market.
Visit Website →Illinois Tool Works Inc
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
Illinois Tool Works Inc. or ITW is an American company that produces engineered fasteners and components, equipment and consumable systems, and specialty products.
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