WallStSmart

Hexcel Corporation (HXL)vsIllinois Tool Works Inc (ITW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 727% more annual revenue ($16.04B vs $1.94B). ITW leads profitability with a 19.1% profit margin vs 6.1%. HXL appears more attractively valued with a PEG of 1.44. ITW earns a higher WallStSmart Score of 58/100 (C).

HXL

Buy

56

out of 100

Grade: C

Growth: 7.3Profit: 5.5Value: 3.3Quality: 6.8
Piotroski: 4/9Altman Z: 2.80

ITW

Buy

58

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

HXLSignificantly Overvalued (-74.8%)

Margin of Safety

-74.8%

Fair Value

$50.26

Current Price

$90.54

$40.28 premium

UndervaluedFair: $50.26Overvalued

Intrinsic value data unavailable for ITW.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HXL1 strengths · Avg: 8.0/10
EPS GrowthGrowth
40.0%8/10

Earnings expanding 40.0% YoY

ITW4 strengths · Avg: 9.3/10
Return on EquityProfitability
93.7%10/10

Every $100 of equity generates 94 in profit

Altman Z-ScoreHealth
4.7110/10

Safe zone — low bankruptcy risk

Market CapQuality
$74.36B9/10

Large-cap with strong market position

Operating MarginProfitability
26.8%8/10

Strong operational efficiency at 26.8%

Areas to Watch

HXL2 concerns · Avg: 2.5/10
Profit MarginProfitability
6.1%3/10

6.1% margin — thin

P/E RatioValuation
60.0x2/10

Premium valuation, high expectations priced in

ITW4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.1%4/10

4.1% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.692/10

Expensive relative to growth rate

Price/BookValuation
23.1x2/10

Trading at 23.1x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : HXL

The strongest argument for HXL centers on EPS Growth. PEG of 1.44 suggests the stock is reasonably priced for its growth.

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 : HXL

The primary concerns for HXL are Profit Margin, P/E Ratio. A P/E of 60.0x 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

ITW carries more volatility with a beta of 1.15 — expect wider price swings.

HXL is growing revenue faster at 9.9% — sustainability is the question.

ITW generates stronger free cash flow (858M), providing more financial flexibility.

Monitor AEROSPACE & DEFENSE industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ITW scores higher overall (58/100 vs 56/100), backed by strong 19.1% margins. 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.

Hexcel Corporation

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Hexcel Corporation develops, manufactures and markets structural materials for use in the aerospace, space, and commercial and industrial defense markets. The company is headquartered in Stamford, Connecticut.

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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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