Illinois Tool Works Inc (ITW)vsRegal Beloit Corporation (RRX)
ITW
Illinois Tool Works Inc
$266.45
+0.53%
INDUSTRIALS · Cap: $76.38B
RRX
Regal Beloit Corporation
$195.13
+2.98%
INDUSTRIALS · Cap: $12.61B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 170% more annual revenue ($16.04B vs $5.93B). ITW leads profitability with a 19.1% profit margin vs 4.7%. RRX appears more attractively valued with a PEG of 1.65. ITW earns a higher WallStSmart Score of 58/100 (C).
ITW
Buy58
out of 100
Grade: C
RRX
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-53.6%
Fair Value
$194.04
Current Price
$266.45
$72.41 premium
Margin of Safety
-13.7%
Fair Value
$197.03
Current Price
$195.13
$1.90 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 94 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 26.8%
Earnings expanding 54.7% YoY
Reasonable price relative to book value
Areas to Watch
Moderate valuation
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
Expensive relative to growth rate
4.3% revenue growth
Distress zone — elevated risk
ROE of 4.3% — 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 19.1% and operating margin at 26.8%.
Bull Case : RRX
The strongest argument for RRX centers on EPS Growth, Price/Book.
Bear Case : ITW
The primary concerns for ITW are P/E Ratio, Revenue Growth, Piotroski F-Score.
Bear Case : RRX
The primary concerns for RRX are PEG Ratio, Revenue Growth, Altman Z-Score. A P/E of 45.0x leaves little room for execution misses. Thin 4.7% margins leave little buffer for downturns.
Key Dynamics to Monitor
ITW carries more volatility with a beta of 1.12 — expect wider price swings.
RRX is growing revenue faster at 4.3% — sustainability is the question.
ITW generates stronger free cash flow (858M), providing more financial flexibility.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ITW scores higher overall (58/100 vs 57/100), 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.
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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