The Home Depot Inc (HD)vsIllinois Tool Works Inc (ITW)
HD
The Home Depot Inc
$332.51
+0.48%
CONSUMER CYCLICAL · Cap: $319.31B
ITW
Illinois Tool Works Inc
$266.45
+0.53%
INDUSTRIALS · Cap: $76.38B
Smart Verdict
WallStSmart Research — data-driven comparison
The Home Depot Inc generates 926% more annual revenue ($164.68B vs $16.04B). ITW leads profitability with a 19.1% profit margin vs 8.6%. ITW appears more attractively valued with a PEG of 2.61. ITW earns a higher WallStSmart Score of 58/100 (C).
HD
Hold50
out of 100
Grade: D+
ITW
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-241.7%
Fair Value
$96.83
Current Price
$332.51
$235.68 premium
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
Mega-cap, among the largest globally
Every $100 of equity generates 146 in profit
Safe zone — low bankruptcy risk
Generating 2.3B 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
Weak financial health signals
Expensive relative to growth rate
Trading at 25.9x book value
Revenue declined 3.8%
Moderate valuation
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : HD
The strongest argument for HD centers on Market Cap, Return on Equity, Altman Z-Score.
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 : HD
The primary concerns for HD are Piotroski F-Score, PEG Ratio, Price/Book.
Bear Case : ITW
The primary concerns for ITW are P/E Ratio, Revenue Growth, Piotroski F-Score.
Key Dynamics to Monitor
ITW carries more volatility with a beta of 1.12 — expect wider price swings.
ITW is growing revenue faster at 4.1% — sustainability is the question.
HD generates stronger free cash flow (2.3B), providing more financial flexibility.
Monitor HOME IMPROVEMENT RETAIL industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ITW scores higher overall (58/100 vs 50/100), backed by strong 19.1% margins. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
The Home Depot Inc
CONSUMER CYCLICAL · HOME IMPROVEMENT RETAIL · USA
The Home Depot, Inc., commonly known as Home Depot, is the largest home improvement retailer in the United States, supplying tools, construction products, and services. The company is headquartered in incorporated Cobb County, Georgia, with an Atlanta mailing address.
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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