Graham Corporation (GHM)vsIllinois Tool Works Inc (ITW)
GHM
Graham Corporation
$107.10
-0.80%
INDUSTRIALS · Cap: $1.19B
ITW
Illinois Tool Works Inc
$252.72
+0.64%
INDUSTRIALS · Cap: $71.52B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 6728% more annual revenue ($16.22B vs $237.56M). ITW leads profitability with a 19.3% profit margin vs 6.3%. ITW appears more attractively valued with a PEG of 2.43. ITW earns a higher WallStSmart Score of 60/100 (C).
GHM
Hold50
out of 100
Grade: D+
ITW
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-57.9%
Fair Value
$55.91
Current Price
$107.10
$51.19 premium
Intrinsic value data unavailable for ITW.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Earnings expanding 78.6% YoY
Conservative balance sheet, low leverage
Revenue surging 20.5% year-over-year
Every $100 of equity generates 97 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 25.7%
Areas to Watch
Trading at 9.0x book value
Smaller company, higher risk/reward
6.3% margin — thin
Weak financial health signals
Expensive relative to growth rate
4.6% revenue growth
Weak financial health signals
Trading at 22.6x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : GHM
The strongest argument for GHM centers on EPS Growth, Debt/Equity, Revenue Growth. Revenue growth of 20.5% 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 19.3% and operating margin at 25.7%.
Bear Case : GHM
The primary concerns for GHM are Price/Book, Market Cap, Profit Margin. A P/E of 79.3x leaves little room for execution misses.
Bear Case : ITW
The primary concerns for ITW are PEG Ratio, Revenue Growth, Piotroski F-Score. Debt-to-equity of 2.83 is elevated, increasing financial risk.
Key Dynamics to Monitor
GHM profiles as a growth stock while ITW is a value play — different risk/reward profiles.
ITW carries more volatility with a beta of 1.05 — expect wider price swings.
GHM is growing revenue faster at 20.5% — sustainability is the question.
ITW generates stronger free cash flow (528M), providing more financial flexibility.
Bottom Line
ITW scores higher overall (60/100 vs 50/100), backed by strong 19.3% margins. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Graham Corporation
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
Graham Corporation designs, manufactures and supplies vacuum and heat transfer equipment for the chemical, defense, petrochemical, oil refining, power generation / alternative energy and other industries. The company is headquartered in Batavia, New York.
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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