Illinois Tool Works Inc (ITW)vsRegal Beloit Corporation (RRX)
ITW
Illinois Tool Works Inc
$268.16
+1.12%
INDUSTRIALS · Cap: $76.37B
RRX
Regal Beloit Corporation
$162.29
+3.69%
INDUSTRIALS · Cap: $10.90B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 172% more annual revenue ($16.47B vs $6.06B). ITW leads profitability with a 19.4% profit margin vs 5.3%. RRX appears more attractively valued with a PEG of 1.21. RRX earns a higher WallStSmart Score of 63/100 (C+).
ITW
Buy62
out of 100
Grade: C+
RRX
Buy63
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ITW.
Margin of Safety
-69.3%
Fair Value
$132.37
Current Price
$162.29
$29.92 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 110 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 26.9%
Reasonable price relative to book value
Earnings expanding 47.1% YoY
Areas to Watch
Expensive relative to growth rate
Weak financial health signals
Trading at 26.4x book value
Elevated debt levels
Premium valuation, high expectations priced in
4.2% revenue growth
Distress zone — elevated risk
ROE of 4.7% — below average capital efficiency
Comparative Analysis Report
WallStSmart ResearchBull 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 : RRX
The strongest argument for RRX centers on Price/Book, EPS Growth. PEG of 1.21 suggests the stock is reasonably priced for its growth.
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 : RRX
The primary concerns for RRX are P/E Ratio, Revenue Growth, Altman Z-Score.
Key Dynamics to Monitor
ITW profiles as a mature stock while RRX is a value play — different risk/reward profiles.
RRX carries more volatility with a beta of 1.04 — expect wider price swings.
ITW is growing revenue faster at 6.1% — sustainability is the question.
ITW generates stronger free cash flow (631M), providing more financial flexibility.
Bottom Line
RRX scores higher overall (63/100 vs 62/100). 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.
Regal Beloit Corporation
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
Regal Beloit Corporation designs, manufactures and sells electric motors, electric motion controls, and power generation and transmission products worldwide. The company is headquartered in Beloit, Wisconsin.
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