Illinois Tool Works Inc (ITW)vsMoodys Corporation (MCO)
ITW
Illinois Tool Works Inc
$266.45
+0.53%
INDUSTRIALS · Cap: $76.38B
MCO
Moodys Corporation
$428.05
-0.10%
FINANCIAL SERVICES · Cap: $76.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 108% more annual revenue ($16.04B vs $7.72B). MCO leads profitability with a 31.9% profit margin vs 19.1%. MCO appears more attractively valued with a PEG of 1.93. MCO earns a higher WallStSmart Score of 71/100 (B).
ITW
Buy58
out of 100
Grade: C
MCO
Strong Buy71
out of 100
Grade: B
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-53.6%
Fair Value
$194.04
Current Price
$266.45
$72.41 premium
Margin of Safety
+33.1%
Fair Value
$639.76
Current Price
$428.05
$211.71 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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%
Every $100 of equity generates 62 in profit
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 42.1%
Earnings expanding 57.6% YoY
Large-cap with strong market position
Areas to Watch
Moderate valuation
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
Expensive relative to growth rate
Premium valuation, high expectations priced in
Trading at 18.7x book value
Comparative Analysis Report
WallStSmart ResearchBull 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%.
Bull Case : MCO
The strongest argument for MCO centers on Return on Equity, Profit Margin, Operating Margin. Profitability is solid with margins at 31.9% and operating margin at 42.1%. Revenue growth of 13.0% demonstrates continued momentum.
Bear Case : ITW
The primary concerns for ITW are P/E Ratio, Revenue Growth, Piotroski F-Score.
Bear Case : MCO
The primary concerns for MCO are PEG Ratio, P/E Ratio, Price/Book.
Key Dynamics to Monitor
ITW profiles as a value stock while MCO is a mature play — different risk/reward profiles.
MCO carries more volatility with a beta of 1.44 — expect wider price swings.
MCO is growing revenue faster at 13.0% — sustainability is the question.
ITW generates stronger free cash flow (858M), providing more financial flexibility.
Bottom Line
MCO scores higher overall (71/100 vs 58/100), backed by strong 31.9% margins and 13.0% 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.
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.
Moodys Corporation
FINANCIAL SERVICES · FINANCIAL DATA & STOCK EXCHANGES · USA
Moody's Corporation, often referred to as Moody's, is an American business and financial services company. It is the holding company for Moody's Investors Service (MIS), an American credit rating agency, and Moody's Analytics (MA), an American provider of financial analysis software and services.
Compare with Other SPECIALTY INDUSTRIAL MACHINERY Stocks
Want to dig deeper into these stocks?