In this research, the frequency comparison function (FCF) method is proposed and studied to realize high-sensitive real-time crack identification at the welding joint area for a beam-type structure. This method is derived from the frequency response function (FRF). During FCF, we use the response signal collected from the designated point of the structure instead of the excitation. The standard deviation of the FCF amplitude curve is calculated to detect and evaluate the possible crack and its induced vibration perturbations afterward. Vibration responses are simulated in ANSYS by the use of the finite element analysis of a welded beam structure, and these signals are then analyzed with the FCF algorithm. It is concluded that FCF is an efficient method for breathing crack identification and can be easily applied under different excitation conditions, including harmonic and random ones. Meanwhile, FCF can be applied without any pre-processing algorithms such as filtering and smoothing. So, it can be used for real-time crack identification. By combining the FCF with the smart coating sensor composed of piezoelectric layers, the crack identification with high sensitivity is realized. The crack is detectable at its very early stage (starting from 3% of the beam thickness). Experimental studies under harmonic and random excitations are processed, and the results prove high sensitivity and feasibility of the proposed crack detection method.