WallStSmart

Illinois Tool Works Inc (ITW)vsParker-Hannifin Corporation (PH)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Parker-Hannifin Corporation generates 31% more annual revenue ($21.50B vs $16.47B). ITW leads profitability with a 19.4% profit margin vs 17.0%. ITW appears more attractively valued with a PEG of 2.46. 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

PH

Buy

60

out of 100

Grade: C

Growth: 6.0Profit: 8.0Value: 3.7Quality: 6.5
Piotroski: 6/9Altman Z: 2.62

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%

PH4 strengths · Avg: 8.5/10
Market CapQuality
$119.77B9/10

Large-cap with strong market position

Return on EquityProfitability
23.7%9/10

Every $100 of equity generates 24 in profit

Operating MarginProfitability
23.5%8/10

Strong operational efficiency at 23.5%

Free Cash FlowQuality
$1.56B8/10

Generating 1.6B in free cash flow

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

PH2 concerns · Avg: 3.0/10
P/E RatioValuation
32.8x4/10

Premium valuation, high expectations priced in

PEG RatioValuation
3.132/10

Expensive relative to growth rate

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 : PH

The strongest argument for PH centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 17.0% and operating margin at 23.5%.

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 : PH

The primary concerns for PH are P/E Ratio, PEG Ratio.

Key Dynamics to Monitor

PH carries more volatility with a beta of 1.12 — expect wider price swings.

PH is growing revenue faster at 9.8% — sustainability is the question.

PH generates stronger free cash flow (1.6B), providing more financial flexibility.

Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ITW scores higher overall (62/100 vs 60/100), backed by strong 19.4% margins. 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.

Parker-Hannifin Corporation

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Parker-Hannifin Corporation, originally Parker Appliance Company, usually referred to as just Parker, is an American corporation specializing in motion and control technologies. Its corporate headquarters are in Mayfield Heights, Ohio, in Greater Cleveland.

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