WallStSmart

Ametek Inc (AME)vsIllinois Tool Works Inc (ITW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 109% more annual revenue ($16.47B vs $7.86B). AME leads profitability with a 20.0% profit margin vs 19.4%. ITW appears more attractively valued with a PEG of 2.46. AME earns a higher WallStSmart Score of 63/100 (C+).

AME

Buy

63

out of 100

Grade: C+

Growth: 6.7Profit: 8.0Value: 2.7Quality: 7.5
Piotroski: 4/9Altman Z: 3.10

ITW

Buy

62

out of 100

Grade: C+

Growth: 5.3Profit: 9.5Value: 5.0Quality: 5.0
Piotroski: 3/9Altman Z: 4.71
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AMESignificantly Overvalued (-81.0%)

Margin of Safety

-81.0%

Fair Value

$130.00

Current Price

$237.64

$107.64 premium

UndervaluedFair: $130.00Overvalued

Intrinsic value data unavailable for ITW.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AME6 strengths · Avg: 8.8/10
Altman Z-ScoreHealth
3.1010/10

Safe zone — low bankruptcy risk

Market CapQuality
$55.44B9/10

Large-cap with strong market position

Profit MarginProfitability
20.0%9/10

Keeps 20 of every $100 in revenue as profit

Debt/EquityHealth
0.219/10

Conservative balance sheet, low leverage

Operating MarginProfitability
26.2%8/10

Strong operational efficiency at 26.2%

Revenue GrowthGrowth
15.0%8/10

15.0% revenue growth

ITW4 strengths · Avg: 9.3/10
Return on EquityProfitability
110.4%10/10

Every $100 of equity generates 110 in profit

Altman Z-ScoreHealth
4.7110/10

Safe zone — low bankruptcy risk

Market CapQuality
$76.37B9/10

Large-cap with strong market position

Operating MarginProfitability
26.9%8/10

Strong operational efficiency at 26.9%

Areas to Watch

AME2 concerns · Avg: 3.0/10
P/E RatioValuation
35.4x4/10

Premium valuation, high expectations priced in

PEG RatioValuation
2.682/10

Expensive relative to growth rate

ITW4 concerns · Avg: 2.5/10
PEG RatioValuation
2.464/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
26.5x2/10

Trading at 26.5x book value

Debt/EquityHealth
3.351/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : AME

The strongest argument for AME centers on Altman Z-Score, Market Cap, Profit Margin. Profitability is solid with margins at 20.0% and operating margin at 26.2%. Revenue growth of 15.0% demonstrates continued momentum.

Bull Case : ITW

The strongest argument for ITW centers on Return on Equity, Altman Z-Score, Market Cap. Profitability is solid with margins at 19.4% and operating margin at 26.9%.

Bear Case : AME

The primary concerns for AME are P/E Ratio, PEG Ratio.

Bear Case : ITW

The primary concerns for ITW are PEG Ratio, Piotroski F-Score, Price/Book. Debt-to-equity of 3.35 is elevated, increasing financial risk.

Key Dynamics to Monitor

ITW carries more volatility with a beta of 1.00 — expect wider price swings.

AME is growing revenue faster at 15.0% — sustainability is the question.

ITW generates stronger free cash flow (631M), providing more financial flexibility.

Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

AME scores higher overall (63/100 vs 62/100), backed by strong 20.0% margins and 15.0% revenue growth. 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.

Ametek Inc

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

AMETEK, Inc. is an American global manufacturer of electronic instruments and electromechanical devices with a headquarters in the United States and over 220 manufacturing sites worldwide.

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.

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