WallStSmart

Illinois Tool Works Inc (ITW)vsMiddleby Corp (MIDD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 401% more annual revenue ($16.04B vs $3.20B). ITW leads profitability with a 19.1% profit margin vs -8.7%. MIDD appears more attractively valued with a PEG of 1.51. ITW earns a higher WallStSmart Score of 58/100 (C).

ITW

Buy

58

out of 100

Grade: C

Growth: 6.7Profit: 9.5Value: 4.7Quality: 5.8
Piotroski: 3/9Altman Z: 4.71

MIDD

Hold

45

out of 100

Grade: D

Growth: 2.0Profit: 5.5Value: 7.3Quality: 8.0
Piotroski: 4/9Altman Z: 2.38
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ITWSignificantly Overvalued (-53.8%)

Margin of Safety

-53.8%

Fair Value

$193.86

Current Price

$257.68

$63.82 premium

UndervaluedFair: $193.86Overvalued
MIDDSignificantly Overvalued (-252.9%)

Margin of Safety

-252.9%

Fair Value

$46.44

Current Price

$135.81

$89.37 premium

UndervaluedFair: $46.44Overvalued

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
$74.26B9/10

Large-cap with strong market position

Operating MarginProfitability
26.8%8/10

Strong operational efficiency at 26.8%

MIDD1 strengths · Avg: 8.0/10
Price/BookValuation
2.4x8/10

Reasonable price relative to book value

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
2.612/10

Expensive relative to growth rate

Price/BookValuation
23.0x2/10

Trading at 23.0x book value

MIDD4 concerns · Avg: 2.3/10
PEG RatioValuation
1.514/10

Expensive relative to growth rate

Revenue GrowthGrowth
-14.5%2/10

Revenue declined 14.5%

EPS GrowthGrowth
-64.2%2/10

Earnings declined 64.2%

Profit MarginProfitability
-8.7%1/10

Currently unprofitable

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 : MIDD

The strongest argument for MIDD centers on Price/Book.

Bear Case : ITW

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

Bear Case : MIDD

The primary concerns for MIDD are PEG Ratio, Revenue Growth, EPS Growth.

Key Dynamics to Monitor

ITW profiles as a value stock while MIDD is a turnaround play — different risk/reward profiles.

MIDD carries more volatility with a beta of 1.34 — expect wider price swings.

ITW is growing revenue faster at 4.1% — sustainability is the question.

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

Bottom Line

ITW scores higher overall (58/100 vs 45/100), 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.

Middleby Corp

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Middleby Corporation designs, manufactures, markets, distributes and services a variety of residential kitchen, food processing and foodservice equipment in the United States, Canada, Asia, Europe, the Middle East and Latin America. The company is headquartered in Elgin, Illinois.

Visit Website →

Want to dig deeper into these stocks?