Illinois Tool Works Inc (ITW)vsUnited Parcel Service Inc (UPS)
ITW
Illinois Tool Works Inc
$265.67
-1.04%
INDUSTRIALS · Cap: $74.36B
UPS
United Parcel Service Inc
$106.61
+2.57%
INDUSTRIALS · Cap: $90.58B
Smart Verdict
WallStSmart Research — data-driven comparison
United Parcel Service Inc generates 450% more annual revenue ($88.32B vs $16.04B). ITW leads profitability with a 19.1% profit margin vs 5.9%. UPS appears more attractively valued with a PEG of 1.59. ITW earns a higher WallStSmart Score of 58/100 (C).
ITW
Buy58
out of 100
Grade: C
UPS
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ITW.
Margin of Safety
+35.9%
Fair Value
$187.24
Current Price
$106.61
$80.63 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%
Every $100 of equity generates 33 in profit
Large-cap with strong market position
Attractively priced relative to earnings
Generating 2.6B in free cash flow
Areas to Watch
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
Trading at 23.8x book value
Expensive relative to growth rate
5.9% margin — thin
Elevated debt levels
Weak financial health signals
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 : UPS
The strongest argument for UPS centers on Return on Equity, Market Cap, P/E Ratio.
Bear Case : ITW
The primary concerns for ITW are Revenue Growth, Piotroski F-Score, PEG Ratio.
Bear Case : UPS
The primary concerns for UPS are PEG Ratio, Profit Margin, Debt/Equity. Debt-to-equity of 1.99 is elevated, increasing financial risk.
Key Dynamics to Monitor
ITW carries more volatility with a beta of 1.15 — expect wider price swings.
ITW is growing revenue faster at 4.1% — sustainability is the question.
UPS generates stronger free cash flow (2.6B), providing more financial flexibility.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ITW scores higher overall (58/100 vs 47/100), backed by strong 19.1% margins. UPS offers better value entry with a 35.9% margin of safety. 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.
United Parcel Service Inc
INDUSTRIALS · INTEGRATED FREIGHT & LOGISTICS · USA
United Parcel Service is an American multinational shipping & receiving and supply chain management company founded in 1907.
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