Howmet Aerospace Inc (HWM)vsIllinois Tool Works Inc (ITW)
HWM
Howmet Aerospace Inc
$280.36
-1.88%
INDUSTRIALS · Cap: $108.21B
ITW
Illinois Tool Works Inc
$252.72
+0.64%
INDUSTRIALS · Cap: $75.52B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 88% more annual revenue ($16.22B vs $8.62B). HWM leads profitability with a 20.2% profit margin vs 19.3%. HWM appears more attractively valued with a PEG of 0.80. HWM earns a higher WallStSmart Score of 73/100 (B).
HWM
Strong Buy73
out of 100
Grade: B
ITW
Buy60
out of 100
Grade: C
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 32 in profit
Earnings expanding 71.4% YoY
Large-cap with strong market position
Keeps 20 of every $100 in revenue as profit
Growing faster than its price suggests
Strong operational efficiency at 28.2%
Every $100 of equity generates 97 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 25.7%
Areas to Watch
Premium valuation, high expectations priced in
Trading at 20.4x book value
4.6% revenue growth
Weak financial health signals
Expensive relative to growth rate
Trading at 22.5x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : HWM
The strongest argument for HWM centers on Return on Equity, EPS Growth, Market Cap. Profitability is solid with margins at 20.2% and operating margin at 28.2%. Revenue growth of 19.1% demonstrates continued momentum.
Bull Case : ITW
The strongest argument for ITW centers on Return on Equity, Altman Z-Score, Market Cap. Profitability is solid with margins at 19.3% and operating margin at 25.7%.
Bear Case : HWM
The primary concerns for HWM are P/E Ratio, Price/Book. A P/E of 62.9x leaves little room for execution misses.
Bear Case : ITW
The primary concerns for ITW are Revenue Growth, Piotroski F-Score, PEG Ratio. Debt-to-equity of 2.83 is elevated, increasing financial risk.
Key Dynamics to Monitor
HWM profiles as a growth stock while ITW is a value play — different risk/reward profiles.
HWM carries more volatility with a beta of 1.19 — expect wider price swings.
HWM is growing revenue faster at 19.1% — sustainability is the question.
ITW generates stronger free cash flow (528M), providing more financial flexibility.
Bottom Line
HWM scores higher overall (73/100 vs 60/100), backed by strong 20.2% margins and 19.1% revenue growth. Both earn "Strong 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.
Howmet Aerospace Inc
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Howmet Aerospace Inc. is an American aerospace company based in Pittsburgh, Pennsylvania. The company manufactures components for jet engines, fasteners and titanium structures for aerospace applications, and forged aluminum wheels for heavy trucks.
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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