Illinois Tool Works Inc (ITW)vsRaytheon Technologies Corp (RTX)
ITW
Illinois Tool Works Inc
$254.76
-0.30%
INDUSTRIALS · Cap: $73.64B
RTX
Raytheon Technologies Corp
$176.09
-0.39%
INDUSTRIALS · Cap: $238.07B
Smart Verdict
WallStSmart Research — data-driven comparison
Raytheon Technologies Corp generates 457% more annual revenue ($90.37B vs $16.22B). ITW leads profitability with a 19.3% profit margin vs 8.0%. RTX appears more attractively valued with a PEG of 2.43. ITW earns a higher WallStSmart Score of 60/100 (C).
ITW
Buy60
out of 100
Grade: C
RTX
Buy59
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ITW.
Margin of Safety
-51.9%
Fair Value
$116.35
Current Price
$176.09
$59.74 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 97 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 25.4%
Mega-cap, among the largest globally
Earnings expanding 32.5% YoY
Generating 1.2B in free cash flow
Areas to Watch
4.6% revenue growth
Weak financial health signals
Expensive relative to growth rate
Trading at 22.8x book value
Expensive relative to growth rate
Premium valuation, high expectations priced in
Distress zone — elevated risk
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 19.3% and operating margin at 25.4%.
Bull Case : RTX
The strongest argument for RTX centers on Market Cap, EPS Growth, Free Cash Flow.
Bear Case : ITW
The primary concerns for ITW are Revenue Growth, Piotroski F-Score, PEG Ratio.
Bear Case : RTX
The primary concerns for RTX are PEG Ratio, P/E Ratio, Altman Z-Score.
Key Dynamics to Monitor
ITW carries more volatility with a beta of 1.05 — expect wider price swings.
RTX is growing revenue faster at 8.7% — sustainability is the question.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ITW scores higher overall (60/100 vs 59/100), backed by strong 19.3% 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.
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.
Raytheon Technologies Corp
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Raytheon Technologies Corporation is an American multinational aerospace and defense conglomerate headquartered in Waltham, Massachusetts. It is one of the largest aerospace, intelligence services providers, and defense manufacturers in the world by revenue and market capitalization. Raytheon Technologies (RTX) researches, develops, and manufactures advanced technology products in the aerospace and defense industry, including aircraft engines, avionics, aerostructures, cybersecurity, guided missiles, air defense systems, satellites, and drones.
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