WallStSmart

Illinois Tool Works Inc (ITW)vsTrinity Industries Inc (TRN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 686% more annual revenue ($16.22B vs $2.06B). ITW leads profitability with a 19.3% profit margin vs 12.4%. TRN appears more attractively valued with a PEG of 0.69. TRN earns a higher WallStSmart Score of 67/100 (B-).

ITW

Buy

60

out of 100

Grade: C

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

TRN

Strong Buy

67

out of 100

Grade: B-

Growth: 4.0Profit: 6.5Value: 6.7Quality: 4.8
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ITW.

TRNSignificantly Overvalued (-18.6%)

Margin of Safety

-18.6%

Fair Value

$26.70

Current Price

$35.85

$9.15 premium

UndervaluedFair: $26.70Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ITW4 strengths · Avg: 9.3/10
Return on EquityProfitability
96.9%10/10

Every $100 of equity generates 97 in profit

Altman Z-ScoreHealth
4.7110/10

Safe zone — low bankruptcy risk

Market CapQuality
$73.63B9/10

Large-cap with strong market position

Operating MarginProfitability
25.4%8/10

Strong operational efficiency at 25.4%

TRN4 strengths · Avg: 8.8/10
P/E RatioValuation
11.4x10/10

Attractively priced relative to earnings

Return on EquityProfitability
23.1%9/10

Every $100 of equity generates 23 in profit

PEG RatioValuation
0.698/10

Growing faster than its price suggests

Price/BookValuation
2.7x8/10

Reasonable price relative to book value

Areas to Watch

ITW4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.552/10

Expensive relative to growth rate

Price/BookValuation
22.5x2/10

Trading at 22.5x book value

TRN3 concerns · Avg: 1.7/10
Revenue GrowthGrowth
-16.0%2/10

Revenue declined 16.0%

Free Cash FlowQuality
$-59.50M2/10

Negative free cash flow — burning cash

Debt/EquityHealth
5.051/10

Elevated debt levels

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 19.3% and operating margin at 25.4%.

Bull Case : TRN

The strongest argument for TRN centers on P/E Ratio, Return on Equity, PEG Ratio. PEG of 0.69 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 : TRN

The primary concerns for TRN are Revenue Growth, Free Cash Flow, Debt/Equity. Debt-to-equity of 5.05 is elevated, increasing financial risk.

Key Dynamics to Monitor

ITW profiles as a value stock while TRN is a declining play — different risk/reward profiles.

TRN carries more volatility with a beta of 1.45 — expect wider price swings.

ITW is growing revenue faster at 4.6% — sustainability is the question.

Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

TRN scores higher overall (67/100 vs 60/100). Both earn "Strong 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.

Trinity Industries Inc

INDUSTRIALS · RAILROADS · USA

Trinity Industries, Inc. provides rail transportation products and services in North America. The company is headquartered in Dallas, Texas.

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