Illinois Tool Works Inc (ITW)vsStanley Black & Decker Inc (SWK)
ITW
Illinois Tool Works Inc
$258.01
-2.88%
INDUSTRIALS · Cap: $74.36B
SWK
Stanley Black & Decker Inc
$75.89
-3.12%
INDUSTRIALS · Cap: $11.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 6% more annual revenue ($16.04B vs $15.13B). ITW leads profitability with a 19.1% profit margin vs 2.7%. SWK appears more attractively valued with a PEG of 1.39. ITW earns a higher WallStSmart Score of 58/100 (C).
ITW
Buy58
out of 100
Grade: C
SWK
Buy52
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ITW.
Margin of Safety
+34.1%
Fair Value
$137.37
Current Price
$75.89
$61.48 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%
Reasonable price relative to book value
Areas to Watch
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
Trading at 23.1x book value
Premium valuation, high expectations priced in
ROE of 4.5% — below average capital efficiency
2.7% margin — thin
Revenue declined 1.0%
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 : SWK
The strongest argument for SWK centers on Price/Book. PEG of 1.39 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 : SWK
The primary concerns for SWK are P/E Ratio, Return on Equity, Profit Margin. Thin 2.7% margins leave little buffer for downturns.
Key Dynamics to Monitor
SWK carries more volatility with a beta of 1.20 — expect wider price swings.
ITW is growing revenue faster at 4.1% — sustainability is the question.
SWK generates stronger free cash flow (883M), providing more financial flexibility.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ITW scores higher overall (58/100 vs 52/100), backed by strong 19.1% margins. SWK offers better value entry with a 34.1% 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.
Stanley Black & Decker Inc
INDUSTRIALS · TOOLS & ACCESSORIES · USA
Stanley Black & Decker, Inc., formerly known as The Stanley Works, is a Fortune 500 American manufacturer of industrial tools and household hardware and provider of security products. Headquartered in the greater Hartford city of New Britain, Connecticut, Stanley Black & Decker is the result of the merger of Stanley Works and Black & Decker on March 12, 2010.
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