Illinois Tool Works Inc (ITW)vsNorfolk Southern Corporation (NSC)
ITW
Illinois Tool Works Inc
$252.72
+0.64%
INDUSTRIALS · Cap: $71.52B
NSC
Norfolk Southern Corporation
$313.45
+2.04%
INDUSTRIALS · Cap: $69.07B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 33% more annual revenue ($16.22B vs $12.19B). NSC leads profitability with a 21.9% profit margin vs 19.3%. ITW appears more attractively valued with a PEG of 2.43. ITW earns a higher WallStSmart Score of 60/100 (C).
ITW
Buy60
out of 100
Grade: C
NSC
Buy55
out of 100
Grade: C
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 25.7%
Strong operational efficiency at 32.3%
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Areas to Watch
Expensive relative to growth rate
4.6% revenue growth
Weak financial health signals
Trading at 22.6x book value
Moderate valuation
0.2% revenue growth
Elevated debt levels
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 25.7%.
Bull Case : NSC
The strongest argument for NSC centers on Operating Margin, Market Cap, Profit Margin. Profitability is solid with margins at 21.9% and operating margin at 32.3%.
Bear Case : ITW
The primary concerns for ITW are PEG Ratio, Revenue Growth, Piotroski F-Score. Debt-to-equity of 2.83 is elevated, increasing financial risk.
Bear Case : NSC
The primary concerns for NSC are P/E Ratio, Revenue Growth, Debt/Equity.
Key Dynamics to Monitor
NSC carries more volatility with a beta of 1.29 — expect wider price swings.
ITW is growing revenue faster at 4.6% — sustainability is the question.
ITW generates stronger free cash flow (528M), providing more financial flexibility.
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.
Norfolk Southern Corporation
INDUSTRIALS · RAILROADS · USA
The Norfolk Southern Railway is a Class I freight railroad in the United States, and is the current name of the former Southern Railway. With headquarters in Atlanta, Georgia, the company operates 19,420 route miles (31,250 km) in 22 eastern states, the District of Columbia, and has rights in Canada over the Albany to Montreal route of the Canadian Pacific Railway, and previously on CN from Buffalo to St. Thomas.
Compare with Other SPECIALTY INDUSTRIAL MACHINERY Stocks
Want to dig deeper into these stocks?