WallStSmart

Graham Corporation (GHM)vsIllinois Tool Works Inc (ITW)

VS

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

Hold

50

out of 100

Grade: D+

Growth: 8.7Profit: 5.5Value: 2.0Quality: 5.3
Piotroski: 1/9

ITW

Buy

60

out of 100

Grade: C

Growth: 4.7Profit: 9.5Value: 5.0Quality: 5.0
Piotroski: 3/9Altman Z: 4.71
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GHMSignificantly Overvalued (-57.9%)

Margin of Safety

-57.9%

Fair Value

$55.91

Current Price

$107.10

$51.19 premium

UndervaluedFair: $55.91Overvalued

Intrinsic value data unavailable for ITW.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GHM3 strengths · Avg: 9.0/10
EPS GrowthGrowth
78.6%10/10

Earnings expanding 78.6% YoY

Debt/EquityHealth
0.139/10

Conservative balance sheet, low leverage

Revenue GrowthGrowth
20.5%8/10

Revenue surging 20.5% year-over-year

ITW4 strengths · Avg: 9.3/10
Return on EquityProfitability
97.1%10/10

Every $100 of equity generates 97 in profit

Altman Z-ScoreHealth
4.7110/10

Safe zone — low bankruptcy risk

Market CapQuality
$71.52B9/10

Large-cap with strong market position

Operating MarginProfitability
25.7%8/10

Strong operational efficiency at 25.7%

Areas to Watch

GHM4 concerns · Avg: 3.3/10
Price/BookValuation
9.0x4/10

Trading at 9.0x book value

Market CapQuality
$1.19B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
6.3%3/10

6.3% margin — thin

Piotroski F-ScoreQuality
1/93/10

Weak financial health signals

ITW4 concerns · Avg: 3.3/10
PEG RatioValuation
2.434/10

Expensive relative to growth rate

Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
22.6x2/10

Trading at 22.6x book value

Comparative Analysis Report

WallStSmart Research

Bull 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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