Illinois Tool Works Inc (ITW)vsTeradyne Inc (TER)
ITW
Illinois Tool Works Inc
$266.45
+0.53%
INDUSTRIALS · Cap: $76.38B
TER
Teradyne Inc
$323.36
+1.01%
TECHNOLOGY · Cap: $50.12B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 403% more annual revenue ($16.04B vs $3.19B). ITW leads profitability with a 19.1% profit margin vs 17.4%. TER appears more attractively valued with a PEG of 1.61. TER earns a higher WallStSmart Score of 70/100 (B).
ITW
Buy58
out of 100
Grade: C
TER
Strong Buy70
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
-98.5%
Fair Value
$161.93
Current Price
$323.36
$161.43 premium
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%
Strong operational efficiency at 30.3%
Revenue surging 43.9% year-over-year
Earnings expanding 81.4% YoY
Large-cap with strong market position
Conservative balance sheet, low leverage
Areas to Watch
Moderate valuation
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
Expensive relative to growth rate
Trading at 18.1x book value
Premium valuation, high expectations priced in
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 : TER
The strongest argument for TER centers on Operating Margin, Revenue Growth, EPS Growth. Profitability is solid with margins at 17.4% and operating margin at 30.3%. Revenue growth of 43.9% demonstrates continued momentum.
Bear Case : ITW
The primary concerns for ITW are P/E Ratio, Revenue Growth, Piotroski F-Score.
Bear Case : TER
The primary concerns for TER are PEG Ratio, Price/Book, P/E Ratio. A P/E of 92.5x leaves little room for execution misses.
Key Dynamics to Monitor
ITW profiles as a value stock while TER is a growth play — different risk/reward profiles.
TER carries more volatility with a beta of 1.80 — expect wider price swings.
TER is growing revenue faster at 43.9% — sustainability is the question.
ITW generates stronger free cash flow (858M), providing more financial flexibility.
Bottom Line
TER scores higher overall (70/100 vs 58/100), backed by strong 17.4% margins and 43.9% 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.
Teradyne Inc
TECHNOLOGY · SEMICONDUCTOR EQUIPMENT & MATERIALS · USA
Teradyne, Inc. is an American automatic test equipment (ATE) designer and manufacturer based in North Reading, Massachusetts.
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