Honeywell International Inc (HON)vsIllinois Tool Works Inc (ITW)
HON
Honeywell International Inc
$225.79
+1.90%
INDUSTRIALS · Cap: $143.53B
ITW
Illinois Tool Works Inc
$266.45
+0.53%
INDUSTRIALS · Cap: $76.38B
Smart Verdict
WallStSmart Research — data-driven comparison
Honeywell International Inc generates 133% more annual revenue ($37.44B vs $16.04B). ITW leads profitability with a 19.1% profit margin vs 12.6%. HON appears more attractively valued with a PEG of 2.01. ITW earns a higher WallStSmart Score of 58/100 (C).
HON
Buy50
out of 100
Grade: C-
ITW
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-416.2%
Fair Value
$47.19
Current Price
$225.79
$178.60 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
Large-cap with strong market position
Every $100 of equity generates 26 in profit
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
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 10.3x book value
Revenue declined 3.3%
Moderate valuation
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : HON
The strongest argument for HON centers on Market Cap, Return on Equity, Free Cash Flow.
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 : HON
The primary concerns for HON are PEG Ratio, P/E Ratio, Price/Book.
Bear Case : ITW
The primary concerns for ITW are P/E Ratio, Revenue Growth, Piotroski F-Score.
Key Dynamics to Monitor
HON profiles as a declining 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.
ITW is growing revenue faster at 4.1% — sustainability is the question.
HON generates stronger free cash flow (1.1B), providing more financial flexibility.
Bottom Line
ITW scores higher overall (58/100 vs 50/100), backed by strong 19.1% 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.
Honeywell International Inc
INDUSTRIALS · CONGLOMERATES · USA
Honeywell International Inc. is an American publicly traded, multinational conglomerate headquartered in Charlotte, North Carolina. It primarily operates in four areas of business: aerospace, building technologies, performance materials and technologies (PMT), and safety and productivity solutions (SPS).
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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