Illinois Tool Works Inc (ITW)vsWarner Bros Discovery Inc (WBD)
ITW
Illinois Tool Works Inc
$266.45
+0.53%
INDUSTRIALS · Cap: $76.38B
WBD
Warner Bros Discovery Inc
$27.22
-0.22%
COMMUNICATION SERVICES · Cap: $67.68B
Smart Verdict
WallStSmart Research — data-driven comparison
Warner Bros Discovery Inc generates 132% more annual revenue ($37.30B vs $16.04B). ITW leads profitability with a 19.1% profit margin vs 1.9%. ITW appears more attractively valued with a PEG of 2.61. ITW earns a higher WallStSmart Score of 58/100 (C).
ITW
Buy58
out of 100
Grade: C
WBD
Buy51
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
-106.3%
Fair Value
$13.57
Current Price
$27.22
$13.65 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%
Large-cap with strong market position
Reasonable price relative to book value
Generating 1.4B in free cash flow
Areas to Watch
Moderate valuation
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
2.3% earnings growth
ROE of 2.1% — below average capital efficiency
1.9% margin — thin
Expensive relative to growth rate
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 : WBD
The strongest argument for WBD centers on Market Cap, Price/Book, Free Cash Flow.
Bear Case : ITW
The primary concerns for ITW are P/E Ratio, Revenue Growth, Piotroski F-Score.
Bear Case : WBD
The primary concerns for WBD are EPS Growth, Return on Equity, Profit Margin. A P/E of 94.1x leaves little room for execution misses. Thin 1.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
WBD carries more volatility with a beta of 1.68 — expect wider price swings.
ITW is growing revenue faster at 4.1% — sustainability is the question.
WBD generates stronger free cash flow (1.4B), providing more financial flexibility.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ITW scores higher overall (58/100 vs 51/100), backed by strong 19.1% 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.
Warner Bros Discovery Inc
COMMUNICATION SERVICES · ENTERTAINMENT · USA
Warner Bros. The company is headquartered in New York, New York.
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