WallStSmart

Illinois Tool Works Inc (ITW)vsTennant Company (TNC)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 1233% more annual revenue ($16.04B vs $1.20B). ITW leads profitability with a 19.1% profit margin vs 3.6%. TNC appears more attractively valued with a PEG of 1.93. 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

TNC

Hold

42

out of 100

Grade: D

Growth: 2.7Profit: 4.0Value: 7.3Quality: 5.0
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
TNCSignificantly Overvalued (-408.7%)

Margin of Safety

-408.7%

Fair Value

$16.05

Current Price

$68.19

$52.14 premium

UndervaluedFair: $16.05Overvalued

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%

TNC1 strengths · Avg: 8.0/10
Price/BookValuation
2.0x8/10

Reasonable price relative to book value

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

TNC4 concerns · Avg: 3.5/10
PEG RatioValuation
1.934/10

Expensive relative to growth rate

P/E RatioValuation
28.9x4/10

Moderate valuation

Market CapQuality
$1.23B3/10

Smaller company, higher risk/reward

Return on EquityProfitability
7.2%3/10

ROE of 7.2% — below average capital efficiency

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 : TNC

The strongest argument for TNC centers on Price/Book.

Bear Case : ITW

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

Bear Case : TNC

The primary concerns for TNC are PEG Ratio, P/E Ratio, Market Cap. Thin 3.6% margins leave little buffer for downturns.

Key Dynamics to Monitor

ITW carries more volatility with a beta of 1.12 — expect wider price swings.

ITW is growing revenue faster at 4.1% — 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 42/100), backed by strong 19.1% margins. Both earn "Buy" and "Hold" 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.

Tennant Company

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Tennant Company designs, manufactures and markets floor cleaning equipment in America, Europe, the Middle East, Africa and Asia Pacific. The company is headquartered in Eden Prairie, Minnesota.

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