Illinois Tool Works Inc (ITW)vsThe Travelers Companies Inc (TRV)
ITW
Illinois Tool Works Inc
$266.45
+0.53%
INDUSTRIALS · Cap: $76.38B
TRV
The Travelers Companies Inc
$290.59
-0.83%
FINANCIAL SERVICES · Cap: $65.36B
Smart Verdict
WallStSmart Research — data-driven comparison
The Travelers Companies Inc generates 204% more annual revenue ($48.83B vs $16.04B). ITW leads profitability with a 19.1% profit margin vs 12.9%. TRV appears more attractively valued with a PEG of 2.36. TRV earns a higher WallStSmart Score of 71/100 (B).
ITW
Buy58
out of 100
Grade: C
TRV
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
+75.4%
Fair Value
$1213.50
Current Price
$290.59
$922.91 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%
Attractively priced relative to earnings
Large-cap with strong market position
Every $100 of equity generates 21 in profit
Conservative balance sheet, low leverage
Reasonable price relative to book value
Strong operational efficiency at 25.9%
Areas to Watch
Moderate valuation
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
Expensive relative to growth rate
3.5% revenue growth
Negative free cash flow — burning cash
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 19.1% and operating margin at 26.8%.
Bull Case : TRV
The strongest argument for TRV centers on P/E Ratio, Market Cap, Return on Equity.
Bear Case : ITW
The primary concerns for ITW are P/E Ratio, Revenue Growth, Piotroski F-Score.
Bear Case : TRV
The primary concerns for TRV are PEG Ratio, Revenue Growth, Free Cash Flow.
Key Dynamics to Monitor
ITW carries more volatility with a beta of 1.12 — expect wider price swings.
ITW is growing revenue faster at 4.1% — sustainability is the question.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TRV scores higher overall (71/100 vs 58/100). 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.
The Travelers Companies Inc
FINANCIAL SERVICES · INSURANCE - PROPERTY & CASUALTY · USA
The Travelers Companies, Inc., commonly known as Travelers, is an American insurance company.
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