Illinois Tool Works Inc (ITW)vsVertex Pharmaceuticals Inc (VRTX)
ITW
Illinois Tool Works Inc
$266.45
+0.53%
INDUSTRIALS · Cap: $76.38B
VRTX
Vertex Pharmaceuticals Inc
$454.97
+1.42%
HEALTHCARE · Cap: $113.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 34% more annual revenue ($16.04B vs $12.00B). VRTX leads profitability with a 32.9% profit margin vs 19.1%. VRTX appears more attractively valued with a PEG of 2.19. VRTX earns a higher WallStSmart Score of 66/100 (B-).
ITW
Buy58
out of 100
Grade: C
VRTX
Strong Buy66
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
+36.5%
Fair Value
$716.04
Current Price
$454.97
$261.07 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 33 of every $100 in revenue as profit
Strong operational efficiency at 39.6%
Safe zone — low bankruptcy risk
Large-cap with strong market position
Every $100 of equity generates 23 in profit
Conservative balance sheet, low leverage
Areas to Watch
Moderate valuation
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
Expensive relative to growth rate
Moderate valuation
Weak financial health signals
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 : VRTX
The strongest argument for VRTX centers on Profit Margin, Operating Margin, Altman Z-Score. Profitability is solid with margins at 32.9% and operating margin at 39.6%.
Bear Case : ITW
The primary concerns for ITW are P/E Ratio, Revenue Growth, Piotroski F-Score.
Bear Case : VRTX
The primary concerns for VRTX are PEG Ratio, P/E Ratio, Piotroski F-Score.
Key Dynamics to Monitor
ITW profiles as a value stock while VRTX is a mature play — different risk/reward profiles.
ITW carries more volatility with a beta of 1.12 — expect wider price swings.
VRTX is growing revenue faster at 9.5% — sustainability is the question.
ITW generates stronger free cash flow (858M), providing more financial flexibility.
Bottom Line
VRTX scores higher overall (66/100 vs 58/100), backed by strong 32.9% margins. 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.
Vertex Pharmaceuticals Inc
HEALTHCARE · BIOTECHNOLOGY · USA
Vertex Pharmaceuticals, Inc. is an American biopharmaceutical company based in Boston, Massachusetts.
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