WallStSmart

Illinois Tool Works Inc (ITW)vsLATAM Airlines Group S.A. (LTM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 12% more annual revenue ($16.04B vs $14.27B). ITW leads profitability with a 19.1% profit margin vs 10.2%. LTM appears more attractively valued with a PEG of 2.58. LTM earns a higher WallStSmart Score of 63/100 (C+).

ITW

Buy

58

out of 100

Grade: C

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

LTM

Buy

63

out of 100

Grade: C+

Growth: 8.7Profit: 8.0Value: 4.7Quality: 4.3
Piotroski: 5/9Altman Z: 1.39
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ITW.

LTMSignificantly Overvalued (-49.1%)

Margin of Safety

-49.1%

Fair Value

$41.15

Current Price

$50.00

$8.85 premium

UndervaluedFair: $41.15Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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
$77.61B9/10

Large-cap with strong market position

Operating MarginProfitability
26.8%8/10

Strong operational efficiency at 26.8%

LTM4 strengths · Avg: 9.5/10
P/E RatioValuation
10.1x10/10

Attractively priced relative to earnings

Return on EquityProfitability
142.9%10/10

Every $100 of equity generates 143 in profit

EPS GrowthGrowth
87.5%10/10

Earnings expanding 87.5% YoY

Revenue GrowthGrowth
16.1%8/10

16.1% revenue growth

Areas to Watch

ITW4 concerns · Avg: 3.3/10
P/E RatioValuation
25.6x4/10

Moderate valuation

Revenue GrowthGrowth
4.1%4/10

4.1% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.732/10

Expensive relative to growth rate

LTM3 concerns · Avg: 2.7/10
Price/BookValuation
12.5x4/10

Trading at 12.5x book value

PEG RatioValuation
2.582/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.392/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

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%.

Bull Case : LTM

The strongest argument for LTM centers on P/E Ratio, Return on Equity, EPS Growth. Revenue growth of 16.1% demonstrates continued momentum.

Bear Case : ITW

The primary concerns for ITW are P/E Ratio, Revenue Growth, Piotroski F-Score.

Bear Case : LTM

The primary concerns for LTM are Price/Book, PEG Ratio, Altman Z-Score.

Key Dynamics to Monitor

ITW profiles as a value stock while LTM is a growth play — different risk/reward profiles.

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

LTM is growing revenue faster at 16.1% — sustainability is the question.

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

Bottom Line

LTM scores higher overall (63/100 vs 58/100) and 16.1% 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.

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.

LATAM Airlines Group S.A.

INDUSTRIALS · AIRLINES · USA

LATAM Airlines Group SA, provides passenger and cargo air transport services in Peru, Argentina, the United States, Europe, Colombia, Brazil, Ecuador, Chile, Asia Pacific and the rest of Latin America.

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