Illinois Tool Works Inc (ITW)vsMcDonald’s Corporation (MCD)
ITW
Illinois Tool Works Inc
$254.76
-0.30%
INDUSTRIALS · Cap: $73.64B
MCD
McDonald’s Corporation
$275.75
-2.80%
CONSUMER CYCLICAL · Cap: $195.92B
Smart Verdict
WallStSmart Research — data-driven comparison
McDonald’s Corporation generates 69% more annual revenue ($27.45B vs $16.22B). MCD leads profitability with a 31.6% profit margin vs 19.3%. MCD appears more attractively valued with a PEG of 2.55. ITW earns a higher WallStSmart Score of 60/100 (C).
ITW
Buy60
out of 100
Grade: C
MCD
Buy55
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ITW.
Margin of Safety
-80.4%
Fair Value
$157.30
Current Price
$275.75
$118.45 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 97 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 25.4%
Keeps 32 of every $100 in revenue as profit
Strong operational efficiency at 45.3%
Conservative balance sheet, low leverage
Large-cap with strong market position
Generating 1.6B in free cash flow
Areas to Watch
4.6% revenue growth
Weak financial health signals
Expensive relative to growth rate
Trading at 22.8x book value
ROE of 0.0% — below average capital efficiency
Weak financial health signals
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 19.3% and operating margin at 25.4%.
Bull Case : MCD
The strongest argument for MCD centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 31.6% and operating margin at 45.3%.
Bear Case : ITW
The primary concerns for ITW are Revenue Growth, Piotroski F-Score, PEG Ratio.
Bear Case : MCD
The primary concerns for MCD are Return on Equity, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
ITW profiles as a value stock while MCD is a mature play — different risk/reward profiles.
ITW carries more volatility with a beta of 1.05 — expect wider price swings.
MCD is growing revenue faster at 9.4% — sustainability is the question.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ITW scores higher overall (60/100 vs 55/100), backed by strong 19.3% 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.
McDonald’s Corporation
CONSUMER CYCLICAL · RESTAURANTS · USA
McDonald's Corporation is an American fast food company, founded in 1940 as a restaurant operated by Richard and Maurice McDonald, in San Bernardino, California, United States. They rechristened their business as a hamburger stand, and later turned the company into a franchise, with the Golden Arches logo being introduced in 1953 at a location in Phoenix, Arizona.
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