Illinois Tool Works Inc (ITW)vsLouisiana-Pacific Corporation (LPX)
ITW
Illinois Tool Works Inc
$255.53
-1.92%
INDUSTRIALS · Cap: $73.63B
LPX
Louisiana-Pacific Corporation
$75.49
+4.14%
INDUSTRIALS · Cap: $5.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 534% more annual revenue ($16.22B vs $2.56B). ITW leads profitability with a 19.3% profit margin vs 3.2%. ITW appears more attractively valued with a PEG of 2.55. ITW earns a higher WallStSmart Score of 60/100 (C).
ITW
Buy60
out of 100
Grade: C
LPX
Avoid35
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ITW.
Margin of Safety
-8.2%
Fair Value
$89.70
Current Price
$75.49
$14.21 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
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%
Safe zone — low bankruptcy risk
Conservative balance sheet, low leverage
Areas to Watch
4.6% revenue growth
Weak financial health signals
Expensive relative to growth rate
Trading at 22.9x book value
ROE of 4.8% — below average capital efficiency
3.2% margin — thin
Expensive relative to growth rate
Premium valuation, high expectations priced in
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 19.3% and operating margin at 25.4%.
Bull Case : LPX
The strongest argument for LPX centers on Altman Z-Score, Debt/Equity.
Bear Case : ITW
The primary concerns for ITW are Revenue Growth, Piotroski F-Score, PEG Ratio.
Bear Case : LPX
The primary concerns for LPX are Return on Equity, Profit Margin, PEG Ratio. A P/E of 64.5x leaves little room for execution misses. Thin 3.2% margins leave little buffer for downturns.
Key Dynamics to Monitor
LPX carries more volatility with a beta of 1.59 — expect wider price swings.
ITW is growing revenue faster at 4.6% — sustainability is the question.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ITW scores higher overall (60/100 vs 35/100), backed by strong 19.3% margins. Both earn "Buy" and "Avoid" 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.
Louisiana-Pacific Corporation
INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA
Louisiana-Pacific Corporation, manufactures and markets construction products primarily for use in the construction, repair and remodeling of new homes and outdoor structures markets. The company is headquartered in Nashville, Tennessee.
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