Illinois Tool Works Inc (ITW)vsCharles Schwab Corp (SCHW)
ITW
Illinois Tool Works Inc
$266.45
+0.53%
INDUSTRIALS · Cap: $76.38B
SCHW
Charles Schwab Corp
$95.68
-0.72%
FINANCIAL SERVICES · Cap: $169.34B
Smart Verdict
WallStSmart Research — data-driven comparison
Charles Schwab Corp generates 49% more annual revenue ($23.92B vs $16.04B). SCHW leads profitability with a 37.0% profit margin vs 19.1%. SCHW appears more attractively valued with a PEG of 1.12. SCHW earns a higher WallStSmart Score of 75/100 (B+).
ITW
Buy58
out of 100
Grade: C
SCHW
Strong Buy75
out of 100
Grade: B+
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
+56.0%
Fair Value
$217.62
Current Price
$95.68
$121.94 discount
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%
Keeps 37 of every $100 in revenue as profit
Strong operational efficiency at 49.7%
Conservative balance sheet, low leverage
Large-cap with strong market position
18.9% revenue growth
Earnings expanding 41.1% YoY
Areas to Watch
Moderate valuation
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
Negative free cash flow — burning cash
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 : SCHW
The strongest argument for SCHW centers on Profit Margin, Operating Margin, Debt/Equity. Profitability is solid with margins at 37.0% and operating margin at 49.7%. Revenue growth of 18.9% demonstrates continued momentum.
Bear Case : ITW
The primary concerns for ITW are P/E Ratio, Revenue Growth, Piotroski F-Score.
Bear Case : SCHW
The primary concerns for SCHW are Free Cash Flow.
Key Dynamics to Monitor
ITW profiles as a value stock while SCHW is a growth play — different risk/reward profiles.
ITW carries more volatility with a beta of 1.12 — expect wider price swings.
SCHW is growing revenue faster at 18.9% — sustainability is the question.
ITW generates stronger free cash flow (858M), providing more financial flexibility.
Bottom Line
SCHW scores higher overall (75/100 vs 58/100), backed by strong 37.0% margins and 18.9% 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.
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.
Charles Schwab Corp
FINANCIAL SERVICES · CAPITAL MARKETS · USA
The Charles Schwab Corporation is an American multinational financial services company. It offers banking, commercial banking, an electronic trading platform, and wealth management advisory services to both retail and institutional clients.
Visit Website →Compare with Other SPECIALTY INDUSTRIAL MACHINERY Stocks
Want to dig deeper into these stocks?