CME Group Inc (CME)vsIllinois Tool Works Inc (ITW)
CME
CME Group Inc
$293.93
+1.24%
FINANCIAL SERVICES · Cap: $105.67B
ITW
Illinois Tool Works Inc
$266.45
+0.53%
INDUSTRIALS · Cap: $76.38B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 147% more annual revenue ($16.04B vs $6.51B). CME leads profitability with a 62.6% profit margin vs 19.1%. ITW appears more attractively valued with a PEG of 2.61. CME earns a higher WallStSmart Score of 63/100 (C+).
CME
Buy63
out of 100
Grade: C+
ITW
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+43.8%
Fair Value
$522.76
Current Price
$293.93
$228.83 discount
Margin of Safety
-53.6%
Fair Value
$194.04
Current Price
$266.45
$72.41 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Keeps 63 of every $100 in revenue as profit
Strong operational efficiency at 63.8%
Large-cap with strong market position
Conservative balance sheet, low leverage
Earnings expanding 35.0% YoY
Generating 1.1B in free cash flow
Every $100 of equity generates 94 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 26.8%
Areas to Watch
Moderate valuation
Weak financial health signals
Expensive relative to growth rate
Moderate valuation
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : CME
The strongest argument for CME centers on Profit Margin, Operating Margin, Market Cap. Profitability is solid with margins at 62.6% and operating margin at 63.8%.
Bull Case : ITW
The strongest argument for ITW centers on Return on Equity, Altman Z-Score, Market Cap. Profitability is solid with margins at 19.1% and operating margin at 26.8%.
Bear Case : CME
The primary concerns for CME are P/E Ratio, Piotroski F-Score, PEG Ratio.
Bear Case : ITW
The primary concerns for ITW are P/E Ratio, Revenue Growth, Piotroski F-Score.
Key Dynamics to Monitor
CME profiles as a mature stock while ITW is a value play — different risk/reward profiles.
ITW carries more volatility with a beta of 1.12 — expect wider price swings.
CME is growing revenue faster at 8.0% — sustainability is the question.
CME generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
CME scores higher overall (63/100 vs 58/100), backed by strong 62.6% 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.
CME Group Inc
FINANCIAL SERVICES · FINANCIAL DATA & STOCK EXCHANGES · USA
CME Group Inc. (Chicago Mercantile Exchange, Chicago Board of Trade, New York Mercantile Exchange, The Commodity Exchange) is an American global markets company. It is the world's largest financial derivatives exchange, and trades in asset classes that include agricultural products, currencies, energy, interest rates, metals, stock indexes and cryptocurrencies futures.
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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