Eaton Corporation PLC (ETN)vsIllinois Tool Works Inc (ITW)
ETN
Eaton Corporation PLC
$424.77
+3.74%
INDUSTRIALS · Cap: $165.21B
ITW
Illinois Tool Works Inc
$269.42
+0.71%
INDUSTRIALS · Cap: $76.37B
Smart Verdict
WallStSmart Research — data-driven comparison
Eaton Corporation PLC generates 82% more annual revenue ($30.03B vs $16.47B). ITW leads profitability with a 19.4% profit margin vs 12.8%. ITW appears more attractively valued with a PEG of 2.46. ITW earns a higher WallStSmart Score of 62/100 (C+).
ETN
Buy53
out of 100
Grade: C-
ITW
Buy62
out of 100
Grade: C+
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Large-cap with strong market position
Revenue surging 21.4% year-over-year
Every $100 of equity generates 110 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 26.9%
Areas to Watch
Expensive relative to growth rate
Trading at 8.1x book value
Elevated debt levels
Premium valuation, high expectations priced in
Expensive relative to growth rate
Weak financial health signals
Trading at 26.5x book value
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : ETN
The strongest argument for ETN centers on Market Cap, Revenue Growth. Revenue growth of 21.4% 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 : ETN
The primary concerns for ETN are PEG Ratio, Price/Book, Debt/Equity. A P/E of 41.7x leaves little room for execution misses.
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
ETN profiles as a growth stock while ITW is a mature play — different risk/reward profiles.
ETN carries more volatility with a beta of 1.17 — expect wider price swings.
ETN is growing revenue faster at 21.4% — sustainability is the question.
ETN generates stronger free cash flow (874M), providing more financial flexibility.
Bottom Line
ITW scores higher overall (62/100 vs 53/100), backed by strong 19.4% margins. 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.
Eaton Corporation PLC
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
Eaton Corporation plc is an American Irish-domiciled multinational power management company with 2020 sales of 17.86 billion USD, founded in the United States with corporate headquarters in Dublin, Ireland, and operational headquarters in Beachwood, 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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