Illinois Tool Works Inc (ITW)vsWells Fargo & Company (WFC)
ITW
Illinois Tool Works Inc
$266.45
+0.53%
INDUSTRIALS · Cap: $76.38B
WFC
Wells Fargo & Company
$80.26
+0.82%
FINANCIAL SERVICES · Cap: $245.65B
Smart Verdict
WallStSmart Research — data-driven comparison
Wells Fargo & Company generates 399% more annual revenue ($80.04B vs $16.04B). WFC leads profitability with a 26.7% profit margin vs 19.1%. WFC appears more attractively valued with a PEG of 1.66. WFC earns a higher WallStSmart Score of 72/100 (B).
ITW
Buy58
out of 100
Grade: C
WFC
Strong Buy72
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
+53.8%
Fair Value
$173.78
Current Price
$80.26
$93.52 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%
Mega-cap, among the largest globally
Keeps 27 of every $100 in revenue as profit
Attractively priced relative to earnings
Reasonable price relative to book value
Strong operational efficiency at 29.9%
Generating 4.1B in free cash flow
Areas to Watch
Moderate valuation
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
Expensive relative to growth rate
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 : WFC
The strongest argument for WFC centers on Market Cap, Profit Margin, P/E Ratio. Profitability is solid with margins at 26.7% and operating margin at 29.9%.
Bear Case : ITW
The primary concerns for ITW are P/E Ratio, Revenue Growth, Piotroski F-Score.
Bear Case : WFC
The primary concerns for WFC are PEG Ratio, Altman Z-Score.
Key Dynamics to Monitor
ITW carries more volatility with a beta of 1.12 — expect wider price swings.
WFC is growing revenue faster at 5.0% — sustainability is the question.
WFC generates stronger free cash flow (4.1B), providing more financial flexibility.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
WFC scores higher overall (72/100 vs 58/100), backed by strong 26.7% margins. 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.
Wells Fargo & Company
FINANCIAL SERVICES · BANKS - DIVERSIFIED · USA
Wells Fargo & Company is an American multinational financial services company with corporate headquarters in San Francisco, California, operational headquarters in Manhattan, and managerial offices throughout the United States and overseas.
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