Heico Corporation (HEI)vsIllinois Tool Works Inc (ITW)
HEI
Heico Corporation
$269.92
+3.42%
INDUSTRIALS · Cap: $36.41B
ITW
Illinois Tool Works Inc
$258.01
-2.88%
INDUSTRIALS · Cap: $74.36B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 246% more annual revenue ($16.04B vs $4.63B). ITW leads profitability with a 19.1% profit margin vs 15.4%. HEI appears more attractively valued with a PEG of 2.46. HEI earns a higher WallStSmart Score of 61/100 (C+).
HEI
Buy61
out of 100
Grade: C+
ITW
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+8.9%
Fair Value
$353.81
Current Price
$269.92
$83.89 discount
Intrinsic value data unavailable for ITW.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Strong operational efficiency at 22.2%
Every $100 of equity generates 94 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 26.8%
Areas to Watch
Expensive relative to growth rate
Trading at 8.4x book value
Premium valuation, high expectations priced in
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
Trading at 23.1x book value
Comparative Analysis Report
WallStSmart ResearchBull Case : HEI
The strongest argument for HEI centers on Operating Margin. Profitability is solid with margins at 15.4% and operating margin at 22.2%. Revenue growth of 14.4% 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 19.1% and operating margin at 26.8%.
Bear Case : HEI
The primary concerns for HEI are PEG Ratio, Price/Book, P/E Ratio. A P/E of 51.8x leaves little room for execution misses.
Bear Case : ITW
The primary concerns for ITW are Revenue Growth, Piotroski F-Score, PEG Ratio.
Key Dynamics to Monitor
HEI profiles as a mature stock while ITW is a value play — different risk/reward profiles.
ITW carries more volatility with a beta of 1.15 — expect wider price swings.
HEI is growing revenue faster at 14.4% — sustainability is the question.
ITW generates stronger free cash flow (858M), providing more financial flexibility.
Bottom Line
HEI scores higher overall (61/100 vs 58/100), backed by strong 15.4% margins and 14.4% revenue growth. 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.
Heico Corporation
INDUSTRIALS · AEROSPACE & DEFENSE · USA
HEICO Corporation designs, manufactures, and sells aerospace, defense, and electronic products and services in the United States and internationally. The company is headquartered in Hollywood, Florida.
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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