Illinois Tool Works Inc (ITW)vsRentokil Initial PLC (RTO)
ITW
Illinois Tool Works Inc
$254.76
-0.30%
INDUSTRIALS · Cap: $73.64B
RTO
Rentokil Initial PLC
$33.65
-1.61%
INDUSTRIALS · Cap: $16.93B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 135% more annual revenue ($16.22B vs $6.91B). ITW leads profitability with a 19.3% profit margin vs 6.8%. RTO appears more attractively valued with a PEG of 0.99. ITW earns a higher WallStSmart Score of 60/100 (C).
ITW
Buy60
out of 100
Grade: C
RTO
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ITW.
Margin of Safety
-6.2%
Fair Value
$30.60
Current Price
$33.65
$3.05 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 97 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 25.4%
Earnings expanding 95.2% YoY
Growing faster than its price suggests
Areas to Watch
4.6% revenue growth
Weak financial health signals
Expensive relative to growth rate
Trading at 22.8x book value
ROE of 5.4% — below average capital efficiency
6.8% margin — thin
Elevated debt levels
Premium valuation, high expectations priced in
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 19.3% and operating margin at 25.4%.
Bull Case : RTO
The strongest argument for RTO centers on EPS Growth, PEG Ratio. PEG of 0.99 suggests the stock is reasonably priced for its growth.
Bear Case : ITW
The primary concerns for ITW are Revenue Growth, Piotroski F-Score, PEG Ratio.
Bear Case : RTO
The primary concerns for RTO are Return on Equity, Profit Margin, Debt/Equity. A P/E of 59.0x leaves little room for execution misses.
Key Dynamics to Monitor
ITW carries more volatility with a beta of 1.05 — expect wider price swings.
RTO is growing revenue faster at 5.8% — sustainability is the question.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ITW scores higher overall (60/100 vs 57/100), backed by strong 19.3% 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.
Rentokil Initial PLC
INDUSTRIALS · SPECIALTY BUSINESS SERVICES · USA
Rentokil Initial plc offers route-based services in North America, the UK, the rest of Europe, Asia, the Pacific and internationally. The company is headquartered in Crawley, the United Kingdom.
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