WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 386% more annual revenue ($16.47B vs $3.39B). ITW leads profitability with a 19.4% profit margin vs -13.9%. MIDD appears more attractively valued with a PEG of 1.51. ITW earns a higher WallStSmart Score of 62/100 (C+).

ITW

Buy

62

out of 100

Grade: C+

Growth: 5.3Profit: 9.5Value: 5.0Quality: 5.0
Piotroski: 3/9Altman Z: 4.71

MIDD

Buy

51

out of 100

Grade: C-

Growth: 3.3Profit: 4.5Value: 7.3Quality: 6.5
Piotroski: 4/9Altman Z: 2.49
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ITW.

MIDDUndervalued (+49.4%)

Margin of Safety

+49.4%

Fair Value

$323.59

Current Price

$112.28

$211.31 discount

UndervaluedFair: $323.59Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ITW4 strengths · Avg: 9.3/10
Return on EquityProfitability
110.4%10/10

Every $100 of equity generates 110 in profit

Altman Z-ScoreHealth
4.7110/10

Safe zone — low bankruptcy risk

Market CapQuality
$76.37B9/10

Large-cap with strong market position

Operating MarginProfitability
26.9%8/10

Strong operational efficiency at 26.9%

MIDD2 strengths · Avg: 8.0/10
P/E RatioValuation
16.5x8/10

Attractively priced relative to earnings

Price/BookValuation
2.3x8/10

Reasonable price relative to book value

Areas to Watch

ITW4 concerns · Avg: 2.5/10
PEG RatioValuation
2.464/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
26.5x2/10

Trading at 26.5x book value

Debt/EquityHealth
3.351/10

Elevated debt levels

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

Expensive relative to growth rate

Return on EquityProfitability
-17.7%2/10

ROE of -17.7% — below average capital efficiency

EPS GrowthGrowth
-39.3%2/10

Earnings declined 39.3%

Profit MarginProfitability
-13.9%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 19.4% and operating margin at 26.9%.

Bull Case : MIDD

The strongest argument for MIDD centers on P/E Ratio, Price/Book.

Bear Case : ITW

The primary concerns for ITW are PEG Ratio, Piotroski F-Score, Price/Book. Debt-to-equity of 3.35 is elevated, increasing financial risk.

Bear Case : MIDD

The primary concerns for MIDD are PEG Ratio, Return on Equity, EPS Growth.

Key Dynamics to Monitor

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

MIDD carries more volatility with a beta of 1.33 — expect wider price swings.

MIDD is growing revenue faster at 9.9% — sustainability is the question.

ITW generates stronger free cash flow (631M), providing more financial flexibility.

Bottom Line

ITW scores higher overall (62/100 vs 51/100), backed by strong 19.4% margins. MIDD offers better value entry with a 49.4% margin of safety. 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.

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.

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