Illinois Tool Works Inc (ITW)vsTaiwan Semiconductor Manufacturing (TSM)
ITW
Illinois Tool Works Inc
$254.76
-0.30%
INDUSTRIALS · Cap: $73.64B
TSM
Taiwan Semiconductor Manufacturing
$411.68
-0.60%
TECHNOLOGY · Cap: $2.18T
Smart Verdict
WallStSmart Research — data-driven comparison
Taiwan Semiconductor Manufacturing generates 25200% more annual revenue ($4.10T vs $16.22B). TSM leads profitability with a 46.5% profit margin vs 19.3%. TSM appears more attractively valued with a PEG of 1.25. TSM earns a higher WallStSmart Score of 84/100 (A-).
ITW
Buy60
out of 100
Grade: C
TSM
Exceptional Buy84
out of 100
Grade: A-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ITW.
Margin of Safety
+72.3%
Fair Value
$1394.10
Current Price
$411.68
$982.42 discount
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
Every $100 of equity generates 36 in profit
Keeps 47 of every $100 in revenue as profit
Strong operational efficiency at 58.1%
Revenue surging 35.1% year-over-year
Earnings expanding 58.4% YoY
Areas to Watch
4.6% revenue growth
Weak financial health signals
Expensive relative to growth rate
Trading at 22.8x book value
Premium valuation, high expectations priced in
Trading at 62.9x book value
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 : TSM
The strongest argument for TSM centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 46.5% and operating margin at 58.1%. Revenue growth of 35.1% demonstrates continued momentum.
Bear Case : ITW
The primary concerns for ITW are Revenue Growth, Piotroski F-Score, PEG Ratio.
Bear Case : TSM
The primary concerns for TSM are P/E Ratio, Price/Book.
Key Dynamics to Monitor
ITW profiles as a value stock while TSM is a growth play — different risk/reward profiles.
TSM carries more volatility with a beta of 1.26 — expect wider price swings.
TSM is growing revenue faster at 35.1% — sustainability is the question.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TSM scores higher overall (84/100 vs 60/100), backed by strong 46.5% margins and 35.1% revenue growth. Both earn "Exceptional 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.
Taiwan Semiconductor Manufacturing
TECHNOLOGY · SEMICONDUCTORS · USA
Taiwan Semiconductor Manufacturing Company, Limited is a Taiwanese multinational semiconductor contract manufacturing and design company. It is one of Taiwan's largest companies, the world's most valuable semiconductor company, and the world's largest dedicated independent (pure-play) semiconductor foundry, with its headquarters and main operations located in the Hsinchu Science Park in Hsinchu, Taiwan. It is majority owned by foreign investors.
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