WallStSmart

Illinois Tool Works Inc (ITW)vsTextron Inc (TXT)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 8% more annual revenue ($16.04B vs $14.80B). ITW leads profitability with a 19.1% profit margin vs 6.2%. TXT appears more attractively valued with a PEG of 1.12. TXT earns a higher WallStSmart Score of 69/100 (B-).

ITW

Buy

58

out of 100

Grade: C

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

TXT

Strong Buy

69

out of 100

Grade: B-

Growth: 7.3Profit: 5.5Value: 5.3Quality: 6.5
Piotroski: 5/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ITW.

TXTSignificantly Overvalued (-17.6%)

Margin of Safety

-17.6%

Fair Value

$82.71

Current Price

$95.96

$13.25 premium

UndervaluedFair: $82.71Overvalued

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%

TXT4 strengths · Avg: 8.5/10
EPS GrowthGrowth
74.4%10/10

Earnings expanding 74.4% YoY

P/E RatioValuation
17.5x8/10

Attractively priced relative to earnings

Price/BookValuation
2.1x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.6%8/10

15.6% revenue growth

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
23.1x2/10

Trading at 23.1x book value

TXT1 concerns · Avg: 3.0/10
Profit MarginProfitability
6.2%3/10

6.2% margin — thin

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 : TXT

The strongest argument for TXT centers on EPS Growth, P/E Ratio, Price/Book. Revenue growth of 15.6% demonstrates continued momentum. PEG of 1.12 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 : TXT

The primary concerns for TXT are Profit Margin.

Key Dynamics to Monitor

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

ITW carries more volatility with a beta of 1.15 — expect wider price swings.

TXT is growing revenue faster at 15.6% — sustainability is the question.

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

Bottom Line

TXT scores higher overall (69/100 vs 58/100) and 15.6% revenue growth. 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.

Textron Inc

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Textron Inc. is an American industrial conglomerate based in Providence, Rhode Island. Textron's subsidiaries include Arctic Cat, Bell Textron, Textron Aviation (which itself includes the Beechcraft, Hawker, and Cessna brands), and Lycoming Engines.

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