WallStSmart

GXO Logistics Inc (GXO)vsIllinois Tool Works Inc (ITW)

VS

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

Hold

47

out of 100

Grade: D+

Growth: 5.3Profit: 4.0Value: 5.3Quality: 3.3
Piotroski: 1/9Altman Z: 1.49

ITW

Buy

60

out of 100

Grade: C

Growth: 4.7Profit: 9.5Value: 4.3Quality: 5.8
Piotroski: 3/9Altman Z: 4.71
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GXOUndervalued (+77.4%)

Margin of Safety

+77.4%

Fair Value

$280.63

Current Price

$49.85

$230.78 discount

UndervaluedFair: $280.63Overvalued

Intrinsic value data unavailable for ITW.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GXO1 strengths · Avg: 8.0/10
Price/BookValuation
1.9x8/10

Reasonable price relative to book value

ITW4 strengths · Avg: 9.3/10
Return on EquityProfitability
96.9%10/10

Every $100 of equity generates 97 in profit

Altman Z-ScoreHealth
4.7110/10

Safe zone — low bankruptcy risk

Market CapQuality
$73.63B9/10

Large-cap with strong market position

Operating MarginProfitability
25.4%8/10

Strong operational efficiency at 25.4%

Areas to Watch

GXO4 concerns · Avg: 3.3/10
PEG RatioValuation
1.564/10

Expensive relative to growth rate

Return on EquityProfitability
1.2%3/10

ROE of 1.2% — below average capital efficiency

Profit MarginProfitability
0.2%3/10

0.2% margin — thin

Operating MarginProfitability
4.0%3/10

Operating margin of 4.0%

ITW4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.552/10

Expensive relative to growth rate

Price/BookValuation
22.5x2/10

Trading at 22.5x book value

Comparative Analysis Report

WallStSmart Research

Bull 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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