Illinois Tool Works Inc (ITW)vsWaters Corporation (WAT)
ITW
Illinois Tool Works Inc
$266.45
+0.53%
INDUSTRIALS · Cap: $76.38B
WAT
Waters Corporation
$302.32
+0.13%
HEALTHCARE · Cap: $29.66B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 407% more annual revenue ($16.04B vs $3.17B). WAT leads profitability with a 20.3% profit margin vs 19.1%. WAT appears more attractively valued with a PEG of 1.25. WAT earns a higher WallStSmart Score of 60/100 (C).
ITW
Buy58
out of 100
Grade: C
WAT
Buy60
out of 100
Grade: C
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
-349.9%
Fair Value
$73.17
Current Price
$302.32
$229.15 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 33.8%
Safe zone — low bankruptcy risk
Every $100 of equity generates 29 in profit
Keeps 20 of every $100 in revenue as profit
Areas to Watch
Moderate valuation
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
Moderate valuation
Earnings declined 3.1%
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 : WAT
The strongest argument for WAT centers on Operating Margin, Altman Z-Score, Return on Equity. Profitability is solid with margins at 20.3% and operating margin at 33.8%. PEG of 1.25 suggests the stock is reasonably priced for its growth.
Bear Case : ITW
The primary concerns for ITW are P/E Ratio, Revenue Growth, Piotroski F-Score.
Bear Case : WAT
The primary concerns for WAT are P/E Ratio, EPS Growth.
Key Dynamics to Monitor
ITW profiles as a value stock while WAT is a mature play — different risk/reward profiles.
WAT carries more volatility with a beta of 1.20 — expect wider price swings.
WAT is growing revenue faster at 6.8% — sustainability is the question.
ITW generates stronger free cash flow (858M), providing more financial flexibility.
Bottom Line
WAT scores higher overall (60/100 vs 58/100), backed by strong 20.3% 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.
Waters Corporation
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.
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