Alcon AG (ALC)vsIllinois Tool Works Inc (ITW)
ALC
Alcon AG
$75.26
+1.37%
HEALTHCARE · Cap: $37.11B
ITW
Illinois Tool Works Inc
$266.45
+0.53%
INDUSTRIALS · Cap: $76.38B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 54% more annual revenue ($16.04B vs $10.40B). ITW leads profitability with a 19.1% profit margin vs 9.4%. ALC appears more attractively valued with a PEG of 1.70. ITW earns a higher WallStSmart Score of 58/100 (C).
ALC
Hold49
out of 100
Grade: D+
ITW
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-489.8%
Fair Value
$13.46
Current Price
$75.26
$61.80 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
Conservative balance sheet, low leverage
Reasonable price relative to book value
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
Expensive relative to growth rate
Premium valuation, high expectations priced in
ROE of 4.5% — below average capital efficiency
Earnings declined 22.2%
Moderate valuation
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : ALC
The strongest argument for ALC centers on Debt/Equity, Price/Book.
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 : ALC
The primary concerns for ALC are PEG Ratio, P/E Ratio, Return on Equity.
Bear Case : ITW
The primary concerns for ITW are P/E Ratio, Revenue Growth, Piotroski F-Score.
Key Dynamics to Monitor
ITW carries more volatility with a beta of 1.12 — expect wider price swings.
ALC is growing revenue faster at 8.6% — sustainability is the question.
ITW generates stronger free cash flow (858M), providing more financial flexibility.
Monitor MEDICAL INSTRUMENTS & SUPPLIES industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ITW scores higher overall (58/100 vs 49/100), backed by strong 19.1% margins. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Alcon AG
HEALTHCARE · MEDICAL INSTRUMENTS & SUPPLIES · USA
Alcon, Inc., an eye care company, researches, develops, manufactures, distributes and sells eye care products for eye care professionals and their patients around the world. The company is headquartered in Geneva, Switzerland.
Visit Website →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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