WallStSmart

Illinois Tool Works Inc (ITW)vsSterling Construction Company Inc (STRL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 544% more annual revenue ($16.04B vs $2.49B). ITW leads profitability with a 19.1% profit margin vs 11.7%. STRL appears more attractively valued with a PEG of 2.36. STRL earns a higher WallStSmart Score of 58/100 (C).

ITW

Buy

58

out of 100

Grade: C

Growth: 4.7Profit: 9.5Value: 4.3Quality: 5.8
Piotroski: 3/9Altman Z: 4.71

STRL

Buy

58

out of 100

Grade: C

Growth: 6.7Profit: 8.0Value: 3.7Quality: 5.8
Piotroski: 6/9Altman Z: 2.89

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
$74.36B9/10

Large-cap with strong market position

Operating MarginProfitability
26.8%8/10

Strong operational efficiency at 26.8%

STRL2 strengths · Avg: 10.0/10
Return on EquityProfitability
32.1%10/10

Every $100 of equity generates 32 in profit

Revenue GrowthGrowth
51.5%10/10

Revenue surging 51.5% year-over-year

Areas to Watch

ITW4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.1%4/10

4.1% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.692/10

Expensive relative to growth rate

Price/BookValuation
23.8x2/10

Trading at 23.8x book value

STRL4 concerns · Avg: 3.0/10
PEG RatioValuation
2.364/10

Expensive relative to growth rate

Price/BookValuation
14.3x4/10

Trading at 14.3x book value

P/E RatioValuation
50.0x2/10

Premium valuation, high expectations priced in

EPS GrowthGrowth
-22.6%2/10

Earnings declined 22.6%

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 : STRL

The strongest argument for STRL centers on Return on Equity, Revenue Growth. Revenue growth of 51.5% demonstrates continued momentum.

Bear Case : ITW

The primary concerns for ITW are Revenue Growth, Piotroski F-Score, PEG Ratio.

Bear Case : STRL

The primary concerns for STRL are PEG Ratio, Price/Book, P/E Ratio. A P/E of 50.0x leaves little room for execution misses.

Key Dynamics to Monitor

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

STRL carries more volatility with a beta of 1.51 — expect wider price swings.

STRL is growing revenue faster at 51.5% — sustainability is the question.

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

Bottom Line

ITW scores higher overall (58/100 vs 58/100), 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.

Sterling Construction Company Inc

INDUSTRIALS · ENGINEERING & CONSTRUCTION · USA

Sterling Construction Company, Inc., a construction company, engages in residential construction, specialty services, and heavy civil activities primarily in the southern United States, the Rocky Mountain states, California, and Hawaii. The company is headquartered in The Woodlands, Texas.

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