Illinois Tool Works Inc (ITW)vsNovartis AG ADR (NVS)
ITW
Illinois Tool Works Inc
$266.45
+0.53%
INDUSTRIALS · Cap: $76.38B
NVS
Novartis AG ADR
$150.75
+1.44%
HEALTHCARE · Cap: $286.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Novartis AG ADR generates 253% more annual revenue ($56.67B vs $16.04B). NVS leads profitability with a 24.7% profit margin vs 19.1%. NVS appears more attractively valued with a PEG of 2.54. ITW earns a higher WallStSmart Score of 58/100 (C).
ITW
Buy58
out of 100
Grade: C
NVS
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-53.6%
Fair Value
$194.04
Current Price
$266.45
$72.41 premium
Margin of Safety
-243.7%
Fair Value
$48.62
Current Price
$150.75
$102.13 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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%
Mega-cap, among the largest globally
Every $100 of equity generates 31 in profit
Keeps 25 of every $100 in revenue as profit
Strong operational efficiency at 27.8%
Generating 1.6B in free cash flow
Areas to Watch
Moderate valuation
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
2.2% revenue growth
Grey zone — moderate risk
Expensive relative to growth rate
Earnings declined 11.6%
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 19.1% and operating margin at 26.8%.
Bull Case : NVS
The strongest argument for NVS centers on Market Cap, Return on Equity, Profit Margin. Profitability is solid with margins at 24.7% and operating margin at 27.8%.
Bear Case : ITW
The primary concerns for ITW are P/E Ratio, Revenue Growth, Piotroski F-Score.
Bear Case : NVS
The primary concerns for NVS are Revenue Growth, Altman Z-Score, PEG Ratio.
Key Dynamics to Monitor
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.
NVS generates stronger free cash flow (1.6B), providing more financial flexibility.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ITW scores higher overall (58/100 vs 51/100), backed by strong 19.1% 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.
Novartis AG ADR
HEALTHCARE · DRUG MANUFACTURERS - GENERAL · USA
Novartis AG researches, develops, manufactures and markets medical devices worldwide. The company is headquartered in Basel, Switzerland.
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