American International Group Inc (AIG)vsIllinois Tool Works Inc (ITW)
AIG
American International Group Inc
$75.47
+1.52%
FINANCIAL SERVICES · Cap: $40.11B
ITW
Illinois Tool Works Inc
$266.45
+0.53%
INDUSTRIALS · Cap: $76.38B
Smart Verdict
WallStSmart Research — data-driven comparison
American International Group Inc generates 66% more annual revenue ($26.61B vs $16.04B). ITW leads profitability with a 19.1% profit margin vs 11.6%. AIG appears more attractively valued with a PEG of 0.86. AIG earns a higher WallStSmart Score of 60/100 (C).
AIG
Buy60
out of 100
Grade: C
ITW
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-112.5%
Fair Value
$36.92
Current Price
$75.47
$38.55 premium
Margin of Safety
-53.6%
Fair Value
$194.04
Current Price
$266.45
$72.41 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Conservative balance sheet, low leverage
Growing faster than its price suggests
Attractively priced relative to earnings
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%
Areas to Watch
ROE of 7.4% — below average capital efficiency
Revenue declined 7.2%
Earnings declined 5.6%
Distress zone — elevated risk
Moderate valuation
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : AIG
The strongest argument for AIG centers on Price/Book, Debt/Equity, PEG Ratio. PEG of 0.86 suggests the stock is reasonably priced for its growth.
Bull 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%.
Bear Case : AIG
The primary concerns for AIG are Return on Equity, Revenue Growth, EPS Growth.
Bear Case : ITW
The primary concerns for ITW are P/E Ratio, Revenue Growth, Piotroski F-Score.
Key Dynamics to Monitor
AIG profiles as a declining stock while ITW is a value play — different risk/reward profiles.
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.
ITW generates stronger free cash flow (858M), providing more financial flexibility.
Bottom Line
AIG scores higher overall (60/100 vs 58/100). 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.
American International Group Inc
FINANCIAL SERVICES · INSURANCE - DIVERSIFIED · USA
American International Group, Inc., also known as AIG, is an American multinational finance and insurance corporation with operations in more than 80 countries and jurisdictions. The company operates through three core businesses: General Insurance, Life & Retirement, and a standalone technology-enabled subsidiary.
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.
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