WallStSmart

Illinois Tool Works Inc (ITW)vsServiceNow Inc (NOW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 16% more annual revenue ($16.22B vs $13.96B). ITW leads profitability with a 19.3% profit margin vs 12.6%. NOW appears more attractively valued with a PEG of 0.89. ITW earns a higher WallStSmart Score of 60/100 (C).

ITW

Buy

60

out of 100

Grade: C

Growth: 4.7Profit: 9.5Value: 4.3Quality: 5.8
Piotroski: 3/9Altman Z: 4.71

NOW

Buy

59

out of 100

Grade: C

Growth: 7.3Profit: 6.5Value: 6.7Quality: 3.8
Piotroski: 1/9Altman Z: 1.65
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ITW.

NOWUndervalued (+85.5%)

Margin of Safety

+85.5%

Fair Value

$628.08

Current Price

$91.18

$536.90 discount

UndervaluedFair: $628.08Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ITW4 strengths · Avg: 9.3/10
Return on EquityProfitability
96.9%10/10

Every $100 of equity generates 97 in profit

Altman Z-ScoreHealth
4.7110/10

Safe zone — low bankruptcy risk

Market CapQuality
$73.64B9/10

Large-cap with strong market position

Operating MarginProfitability
25.4%8/10

Strong operational efficiency at 25.4%

NOW4 strengths · Avg: 8.3/10
Market CapQuality
$96.52B9/10

Large-cap with strong market position

PEG RatioValuation
0.898/10

Growing faster than its price suggests

Revenue GrowthGrowth
22.1%8/10

Revenue surging 22.1% year-over-year

Free Cash FlowQuality
$1.53B8/10

Generating 1.5B in free cash flow

Areas to Watch

ITW4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.582/10

Expensive relative to growth rate

Price/BookValuation
22.8x2/10

Trading at 22.8x book value

NOW4 concerns · Avg: 3.8/10
Price/BookValuation
8.0x4/10

Trading at 8.0x book value

EPS GrowthGrowth
2.3%4/10

2.3% earnings growth

Altman Z-ScoreHealth
1.654/10

Distress zone — elevated risk

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

Comparative Analysis Report

WallStSmart Research

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 25.4%.

Bull Case : NOW

The strongest argument for NOW centers on Market Cap, PEG Ratio, Revenue Growth. Revenue growth of 22.1% demonstrates continued momentum. PEG of 0.89 suggests the stock is reasonably priced for its growth.

Bear Case : ITW

The primary concerns for ITW are Revenue Growth, Piotroski F-Score, PEG Ratio.

Bear Case : NOW

The primary concerns for NOW are Price/Book, EPS Growth, Altman Z-Score. A P/E of 55.7x leaves little room for execution misses.

Key Dynamics to Monitor

ITW profiles as a value stock while NOW is a growth play — different risk/reward profiles.

ITW carries more volatility with a beta of 1.05 — expect wider price swings.

NOW is growing revenue faster at 22.1% — sustainability is the question.

NOW generates stronger free cash flow (1.5B), providing more financial flexibility.

Bottom Line

ITW scores higher overall (60/100 vs 59/100), backed by strong 19.3% margins. NOW offers better value entry with a 85.5% margin of safety. 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.

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.

ServiceNow Inc

TECHNOLOGY · SOFTWARE - APPLICATION · USA

ServiceNow is an American software company based in Santa Clara, California that develops a cloud computing platform to help companies manage digital workflows for enterprise operations.

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