Illinois Tool Works Inc (ITW)vsKratos Defense & Security Solutions (KTOS)
ITW
Illinois Tool Works Inc
$258.01
-2.88%
INDUSTRIALS · Cap: $74.36B
KTOS
Kratos Defense & Security Solutions
$63.05
+5.86%
INDUSTRIALS · Cap: $11.16B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 1091% more annual revenue ($16.04B vs $1.35B). ITW leads profitability with a 19.1% profit margin vs 1.6%. ITW appears more attractively valued with a PEG of 2.69. ITW earns a higher WallStSmart Score of 58/100 (C).
ITW
Buy58
out of 100
Grade: C
KTOS
Hold39
out of 100
Grade: F
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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%
Conservative balance sheet, low leverage
Revenue surging 21.9% year-over-year
Areas to Watch
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
Trading at 23.1x book value
ROE of 1.3% — below average capital efficiency
1.6% margin — thin
Operating margin of 2.9%
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull 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%.
Bull Case : KTOS
The strongest argument for KTOS centers on Debt/Equity, Revenue Growth. Revenue growth of 21.9% demonstrates continued momentum.
Bear Case : ITW
The primary concerns for ITW are Revenue Growth, Piotroski F-Score, PEG Ratio.
Bear Case : KTOS
The primary concerns for KTOS are Return on Equity, Profit Margin, Operating Margin. A P/E of 458.1x leaves little room for execution misses. Thin 1.6% margins leave little buffer for downturns.
Key Dynamics to Monitor
ITW profiles as a value stock while KTOS is a growth play — different risk/reward profiles.
KTOS carries more volatility with a beta of 1.22 — expect wider price swings.
KTOS is growing revenue faster at 21.9% — sustainability is the question.
ITW generates stronger free cash flow (858M), providing more financial flexibility.
Bottom Line
ITW scores higher overall (58/100 vs 39/100), backed by strong 19.1% 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.
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.
Kratos Defense & Security Solutions
INDUSTRIALS · AEROSPACE & DEFENSE · USA
Kratos Defense & Security Solutions, Inc. is a government contractor for the US Department of Defense. The company is headquartered in San Diego, California.
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