WallStSmart

Illinois Tool Works Inc (ITW)vsPower Solutions International, Inc. Common Stock (PSIX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 2121% more annual revenue ($16.04B vs $722.40M). ITW leads profitability with a 19.1% profit margin vs 15.8%. PSIX trades at a lower P/E of 12.0x. 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

PSIX

Buy

53

out of 100

Grade: C-

Growth: 6.7Profit: 8.5Value: 5.7Quality: 8.5
Piotroski: 5/9Altman Z: 3.16
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ITWSignificantly Overvalued (-53.6%)

Margin of Safety

-53.6%

Fair Value

$194.04

Current Price

$266.45

$72.41 premium

UndervaluedFair: $194.04Overvalued
PSIXSignificantly Overvalued (-155.6%)

Margin of Safety

-155.6%

Fair Value

$33.59

Current Price

$64.94

$31.35 premium

UndervaluedFair: $33.59Overvalued

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
$76.38B9/10

Large-cap with strong market position

Operating MarginProfitability
26.8%8/10

Strong operational efficiency at 26.8%

PSIX4 strengths · Avg: 10.0/10
P/E RatioValuation
12.0x10/10

Attractively priced relative to earnings

Return on EquityProfitability
93.5%10/10

Every $100 of equity generates 94 in profit

Revenue GrowthGrowth
32.5%10/10

Revenue surging 32.5% year-over-year

Altman Z-ScoreHealth
3.1610/10

Safe zone — low bankruptcy risk

Areas to Watch

ITW4 concerns · Avg: 3.3/10
P/E RatioValuation
25.2x4/10

Moderate valuation

Revenue GrowthGrowth
4.1%4/10

4.1% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.612/10

Expensive relative to growth rate

PSIX4 concerns · Avg: 2.8/10
Price/BookValuation
8.4x4/10

Trading at 8.4x book value

Market CapQuality
$1.36B3/10

Smaller company, higher risk/reward

EPS GrowthGrowth
-31.6%2/10

Earnings declined 31.6%

Free Cash FlowQuality
$-7.63M2/10

Negative free cash flow — burning cash

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 : PSIX

The strongest argument for PSIX centers on P/E Ratio, Return on Equity, Revenue Growth. Profitability is solid with margins at 15.8% and operating margin at 12.7%. Revenue growth of 32.5% demonstrates continued momentum.

Bear Case : ITW

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

Bear Case : PSIX

The primary concerns for PSIX are Price/Book, Market Cap, EPS Growth.

Key Dynamics to Monitor

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

PSIX carries more volatility with a beta of 2.08 — expect wider price swings.

PSIX is growing revenue faster at 32.5% — sustainability is the question.

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

Bottom Line

ITW scores higher overall (58/100 vs 53/100), backed by strong 19.1% 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.

Power Solutions International, Inc. Common Stock

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Power Solutions International, Inc. designs, engineers, manufactures, markets, and sells engines and power systems in the United States, North America, the Pacific Rim, Europe, and internationally.

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