Howmet Aerospace Inc (HWM)vsIllinois Tool Works Inc (ITW)
HWM
Howmet Aerospace Inc
$241.58
+0.86%
INDUSTRIALS · Cap: $93.06B
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 94% more annual revenue ($16.04B vs $8.25B). ITW leads profitability with a 19.1% profit margin vs 18.3%. HWM appears more attractively valued with a PEG of 0.80. HWM earns a higher WallStSmart Score of 69/100 (B-).
HWM
Strong Buy69
out of 100
Grade: B-
ITW
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-58.8%
Fair Value
$145.34
Current Price
$241.58
$96.24 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
Every $100 of equity generates 30 in profit
Large-cap with strong market position
Growing faster than its price suggests
Strong operational efficiency at 26.3%
Earnings expanding 20.3% YoY
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
Trading at 18.1x book value
Premium valuation, high expectations priced in
Moderate valuation
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : HWM
The strongest argument for HWM centers on Return on Equity, Market Cap, PEG Ratio. Profitability is solid with margins at 18.3% and operating margin at 26.3%. Revenue growth of 14.6% demonstrates continued momentum.
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 : HWM
The primary concerns for HWM are Price/Book, P/E Ratio. A P/E of 62.5x leaves little room for execution misses.
Bear Case : ITW
The primary concerns for ITW are P/E Ratio, Revenue Growth, Piotroski F-Score.
Key Dynamics to Monitor
HWM profiles as a mature stock while ITW is a value play — different risk/reward profiles.
HWM carries more volatility with a beta of 1.19 — expect wider price swings.
HWM is growing revenue faster at 14.6% — sustainability is the question.
ITW generates stronger free cash flow (858M), providing more financial flexibility.
Bottom Line
HWM scores higher overall (69/100 vs 58/100), backed by strong 18.3% margins and 14.6% revenue growth. 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.
Howmet Aerospace Inc
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Howmet Aerospace Inc. is an American aerospace company based in Pittsburgh, Pennsylvania. The company manufactures components for jet engines, fasteners and titanium structures for aerospace applications, and forged aluminum wheels for heavy trucks.
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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