Illinois Tool Works Inc (ITW)vsTrex Company Inc (TREX)
ITW
Illinois Tool Works Inc
$258.01
-2.88%
INDUSTRIALS · Cap: $74.36B
TREX
Trex Company Inc
$39.63
-3.37%
INDUSTRIALS · Cap: $4.12B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 1266% more annual revenue ($16.04B vs $1.17B). ITW leads profitability with a 19.1% profit margin vs 16.2%. TREX appears more attractively valued with a PEG of 1.00. ITW earns a higher WallStSmart Score of 58/100 (C).
ITW
Buy58
out of 100
Grade: C
TREX
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ITW.
Margin of Safety
+56.5%
Fair Value
$101.25
Current Price
$39.63
$61.62 discount
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%
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Areas to Watch
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
Trading at 23.1x book value
Operating margin of 2.2%
Weak financial health signals
Revenue declined 3.9%
Earnings declined 89.4%
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 : TREX
The strongest argument for TREX centers on Altman Z-Score, PEG Ratio. Profitability is solid with margins at 16.2% and operating margin at 2.2%. PEG of 1.00 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 : TREX
The primary concerns for TREX are Operating Margin, Piotroski F-Score, Revenue Growth.
Key Dynamics to Monitor
ITW profiles as a value stock while TREX is a declining play — different risk/reward profiles.
TREX carries more volatility with a beta of 1.61 — 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.
Bottom Line
ITW scores higher overall (58/100 vs 51/100), backed by strong 19.1% margins. TREX offers better value entry with a 56.5% margin of safety. 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.
Trex Company Inc
INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA
Trex Company, Inc. manufactures and distributes wood-plastic composite products and related accessories primarily for residential deck and railing applications in the United States. The company is headquartered in Winchester, Virginia.
Compare with Other SPECIALTY INDUSTRIAL MACHINERY Stocks
Want to dig deeper into these stocks?