GXO Logistics Inc (GXO)vsIllinois Tool Works Inc (ITW)
GXO
GXO Logistics Inc
$49.85
+7.74%
INDUSTRIALS · Cap: $6.47B
ITW
Illinois Tool Works Inc
$251.65
-1.50%
INDUSTRIALS · Cap: $73.63B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 23% more annual revenue ($16.22B vs $13.18B). ITW leads profitability with a 19.3% profit margin vs 0.2%. GXO appears more attractively valued with a PEG of 1.56. ITW earns a higher WallStSmart Score of 60/100 (C).
GXO
Hold47
out of 100
Grade: D+
ITW
Buy60
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+77.4%
Fair Value
$280.63
Current Price
$49.85
$230.78 discount
Intrinsic value data unavailable for ITW.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Every $100 of equity generates 97 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 25.4%
Areas to Watch
Expensive relative to growth rate
ROE of 1.2% — below average capital efficiency
0.2% margin — thin
Operating margin of 4.0%
4.6% revenue growth
Weak financial health signals
Expensive relative to growth rate
Trading at 22.5x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : GXO
The strongest argument for GXO centers on Price/Book.
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 25.4%.
Bear Case : GXO
The primary concerns for GXO are PEG Ratio, Return on Equity, Profit Margin. A P/E of 200.8x leaves little room for execution misses. Thin 0.2% margins leave little buffer for downturns.
Bear Case : ITW
The primary concerns for ITW are Revenue Growth, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
GXO carries more volatility with a beta of 1.68 — expect wider price swings.
GXO is growing revenue faster at 7.9% — sustainability is the question.
Monitor INTEGRATED FREIGHT & LOGISTICS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ITW scores higher overall (60/100 vs 47/100), backed by strong 19.3% margins. GXO offers better value entry with a 77.4% margin of safety. 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.
GXO Logistics Inc
INDUSTRIALS · INTEGRATED FREIGHT & LOGISTICS · USA
GXO Logistics Inc (GXO) stands as a premier provider of contract logistics services, offering comprehensive supply chain management and logistics solutions tailored to various industries, including e-commerce, retail, and consumer goods. Leveraging an expansive global network and cutting-edge technologies, GXO enhances operational efficiency and scalability for clients, all while prioritizing sustainability in its practices. With a growing demand for advanced warehousing and fulfillment solutions, the company is strategically positioned to navigate market complexities, driven by a seasoned management team and robust partnerships that foster consistent long-term growth and shareholder value.
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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