WallStSmart

Illinois Tool Works Inc (ITW)vsLegalZoom.com Inc (LZ)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 2022% more annual revenue ($16.04B vs $756.04M). ITW leads profitability with a 19.1% profit margin vs 2.0%. ITW trades at a lower P/E of 24.0x. ITW earns a higher WallStSmart Score of 58/100 (C).

ITW

Buy

58

out of 100

Grade: C

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

LZ

Hold

39

out of 100

Grade: F

Growth: 5.3Profit: 5.0Value: 5.7Quality: 3.8
Piotroski: 4/9Altman Z: -1.72
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ITW.

LZUndervalued (+42.9%)

Margin of Safety

+42.9%

Fair Value

$12.45

Current Price

$6.45

$6.00 discount

UndervaluedFair: $12.45Overvalued

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
$74.36B9/10

Large-cap with strong market position

Operating MarginProfitability
26.8%8/10

Strong operational efficiency at 26.8%

LZ1 strengths · Avg: 8.0/10
Revenue GrowthGrowth
17.7%8/10

17.7% revenue growth

Areas to Watch

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

LZ4 concerns · Avg: 2.5/10
Market CapQuality
$1.12B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
2.0%3/10

2.0% margin — thin

P/E RatioValuation
80.9x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-57.9%2/10

Earnings declined 57.9%

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 : LZ

The strongest argument for LZ centers on Revenue Growth. Revenue growth of 17.7% demonstrates continued momentum.

Bear Case : ITW

The primary concerns for ITW are Revenue Growth, Piotroski F-Score, PEG Ratio.

Bear Case : LZ

The primary concerns for LZ are Market Cap, Profit Margin, P/E Ratio. A P/E of 80.9x leaves little room for execution misses. Thin 2.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

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

LZ carries more volatility with a beta of 1.30 — expect wider price swings.

LZ is growing revenue faster at 17.7% — 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. LZ offers better value entry with a 42.9% margin of safety. 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.

LegalZoom.com Inc

INDUSTRIALS · SPECIALTY BUSINESS SERVICES · USA

LegalZoom.com, Inc. operates an online platform for legal and compliance solutions in the United States. The company is headquartered in Glendale, California.

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