WallStSmart

Babcock & Wilcox Enterprises Inc (BW)vsIllinois Tool Works Inc (ITW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 2630% more annual revenue ($16.04B vs $587.68M). ITW leads profitability with a 19.1% profit margin vs -6.2%. ITW earns a higher WallStSmart Score of 58/100 (C).

BW

Avoid

23

out of 100

Grade: F

Growth: 2.7Profit: 2.5Value: 5.0Quality: 5.0

ITW

Buy

58

out of 100

Grade: C

Growth: 6.7Profit: 9.5Value: 4.7Quality: 5.8
Piotroski: 3/9Altman Z: 4.71
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for BW.

ITWSignificantly Overvalued (-53.6%)

Margin of Safety

-53.6%

Fair Value

$194.04

Current Price

$266.45

$72.41 premium

UndervaluedFair: $194.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

BW0 strengths · Avg: 0/10

No standout strengths identified

ITW4 strengths · Avg: 9.3/10
Return on EquityProfitability
93.7%10/10

Every $100 of equity generates 94 in profit

Altman Z-ScoreHealth
4.7110/10

Safe zone — low bankruptcy risk

Market CapQuality
$76.38B9/10

Large-cap with strong market position

Operating MarginProfitability
26.8%8/10

Strong operational efficiency at 26.8%

Areas to Watch

BW4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
2.0%4/10

2.0% revenue growth

Market CapQuality
$1.98B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
-3.5%2/10

ROE of -3.5% — below average capital efficiency

EPS GrowthGrowth
-93.5%2/10

Earnings declined 93.5%

ITW4 concerns · Avg: 3.3/10
P/E RatioValuation
25.2x4/10

Moderate valuation

Revenue GrowthGrowth
4.1%4/10

4.1% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.612/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : BW

BW has a balanced fundamental profile.

Bull Case : ITW

The strongest argument for ITW centers on Return on Equity, Altman Z-Score, Market Cap. Profitability is solid with margins at 19.1% and operating margin at 26.8%.

Bear Case : BW

The primary concerns for BW are Revenue Growth, Market Cap, Return on Equity.

Bear Case : ITW

The primary concerns for ITW are P/E Ratio, Revenue Growth, Piotroski F-Score.

Key Dynamics to Monitor

BW profiles as a turnaround stock while ITW is a value play — different risk/reward profiles.

BW carries more volatility with a beta of 1.48 — expect wider price swings.

ITW is growing revenue faster at 4.1% — sustainability is the question.

ITW generates stronger free cash flow (858M), providing more financial flexibility.

Bottom Line

ITW scores higher overall (58/100 vs 23/100), backed by strong 19.1% margins. Both earn "Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Babcock & Wilcox Enterprises Inc

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Babcock & Wilcox Enterprises, Inc., provides energy and environmental technologies and services for the energy and industrial markets globally. The company is headquartered in Akron, Ohio.

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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