Illinois Tool Works Inc (ITW)vsSAP SE ADR (SAP)
ITW
Illinois Tool Works Inc
$254.76
-0.30%
INDUSTRIALS · Cap: $73.64B
SAP
SAP SE ADR
$173.70
-0.58%
TECHNOLOGY · Cap: $204.11B
Smart Verdict
WallStSmart Research — data-driven comparison
SAP SE ADR generates 130% more annual revenue ($37.34B vs $16.22B). SAP leads profitability with a 19.6% profit margin vs 19.3%. SAP appears more attractively valued with a PEG of 0.73. SAP earns a higher WallStSmart Score of 62/100 (C+).
ITW
Buy60
out of 100
Grade: C
SAP
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ITW.
Margin of Safety
-16.9%
Fair Value
$168.01
Current Price
$173.70
$5.69 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%
Mega-cap, among the largest globally
Strong operational efficiency at 30.0%
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Growing faster than its price suggests
Generating 3.3B 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
No major concerns identified
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 : SAP
The strongest argument for SAP centers on Market Cap, Operating Margin, Altman Z-Score. Profitability is solid with margins at 19.6% and operating margin at 30.0%. PEG of 0.73 suggests the stock is reasonably priced for its growth.
Bear Case : ITW
The primary concerns for ITW are Revenue Growth, Piotroski F-Score, PEG Ratio.
Bear Case : SAP
No major red flags identified for SAP, but monitor valuation.
Key Dynamics to Monitor
ITW profiles as a value stock while SAP is a mature play — different risk/reward profiles.
ITW carries more volatility with a beta of 1.05 — expect wider price swings.
SAP is growing revenue faster at 6.0% — sustainability is the question.
SAP generates stronger free cash flow (3.3B), providing more financial flexibility.
Bottom Line
SAP scores higher overall (62/100 vs 60/100), backed by strong 19.6% 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.
SAP SE ADR
TECHNOLOGY · SOFTWARE - APPLICATION · USA
SAP SE is a global enterprise application software company. The company is headquartered in Walldorf, Germany.
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