Illinois Tool Works Inc (ITW)vsWilliams Companies Inc (WMB)
ITW
Illinois Tool Works Inc
$266.45
+0.53%
INDUSTRIALS · Cap: $76.38B
WMB
Williams Companies Inc
$73.81
-0.87%
ENERGY · Cap: $90.96B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 36% more annual revenue ($16.04B vs $11.83B). WMB leads profitability with a 22.1% profit margin vs 19.1%. WMB appears more attractively valued with a PEG of 2.47. WMB earns a higher WallStSmart Score of 67/100 (B-).
ITW
Buy58
out of 100
Grade: C
WMB
Strong Buy67
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
+29.0%
Fair Value
$100.15
Current Price
$73.81
$26.34 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%
Strong operational efficiency at 41.2%
Earnings expanding 50.8% YoY
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Areas to Watch
Moderate valuation
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
Expensive relative to growth rate
Premium valuation, high expectations priced in
Weak financial health signals
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 : WMB
The strongest argument for WMB centers on Operating Margin, EPS Growth, Market Cap. Profitability is solid with margins at 22.1% and operating margin at 41.2%.
Bear Case : ITW
The primary concerns for ITW are P/E Ratio, Revenue Growth, Piotroski F-Score.
Bear Case : WMB
The primary concerns for WMB are PEG Ratio, P/E Ratio, Piotroski F-Score.
Key Dynamics to Monitor
ITW profiles as a value stock while WMB is a mature play — different risk/reward profiles.
ITW carries more volatility with a beta of 1.12 — expect wider price swings.
WMB is growing revenue faster at 8.7% — sustainability is the question.
ITW generates stronger free cash flow (858M), providing more financial flexibility.
Bottom Line
WMB scores higher overall (67/100 vs 58/100), backed by strong 22.1% 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.
Williams Companies Inc
ENERGY · OIL & GAS MIDSTREAM · USA
The Williams Companies, Inc., is an American energy company based in Tulsa, Oklahoma. Its core business is natural gas processing and transportation, with additional petroleum and electricity generation assets.
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