WallStSmart

Illinois Tool Works Inc (ITW)vsUnited Rentals Inc (URI)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

United Rentals Inc generates 1% more annual revenue ($16.36B vs $16.22B). ITW leads profitability with a 19.3% profit margin vs 15.3%. URI appears more attractively valued with a PEG of 1.65. URI earns a higher WallStSmart Score of 64/100 (C+).

ITW

Buy

60

out of 100

Grade: C

Growth: 4.7Profit: 9.5Value: 5.0Quality: 5.0
Piotroski: 3/9Altman Z: 4.71

URI

Buy

64

out of 100

Grade: C+

Growth: 6.7Profit: 8.5Value: 5.0Quality: 4.0
Piotroski: 2/9Altman Z: 1.98

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ITW4 strengths · Avg: 9.3/10
Return on EquityProfitability
97.1%10/10

Every $100 of equity generates 97 in profit

Altman Z-ScoreHealth
4.7110/10

Safe zone — low bankruptcy risk

Market CapQuality
$71.52B9/10

Large-cap with strong market position

Operating MarginProfitability
25.7%8/10

Strong operational efficiency at 25.7%

URI3 strengths · Avg: 8.7/10
Market CapQuality
$62.32B9/10

Large-cap with strong market position

Return on EquityProfitability
27.9%9/10

Every $100 of equity generates 28 in profit

Operating MarginProfitability
23.1%8/10

Strong operational efficiency at 23.1%

Areas to Watch

ITW4 concerns · Avg: 3.3/10
PEG RatioValuation
2.434/10

Expensive relative to growth rate

Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
22.6x2/10

Trading at 22.6x book value

URI4 concerns · Avg: 3.8/10
PEG RatioValuation
1.654/10

Expensive relative to growth rate

P/E RatioValuation
25.4x4/10

Moderate valuation

Altman Z-ScoreHealth
1.984/10

Grey zone — moderate risk

Debt/EquityHealth
1.673/10

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 25.7%.

Bull Case : URI

The strongest argument for URI centers on Market Cap, Return on Equity, Operating Margin. Profitability is solid with margins at 15.3% and operating margin at 23.1%.

Bear Case : ITW

The primary concerns for ITW are PEG Ratio, Revenue Growth, Piotroski F-Score. Debt-to-equity of 2.83 is elevated, increasing financial risk.

Bear Case : URI

The primary concerns for URI are PEG Ratio, P/E Ratio, Altman Z-Score. Debt-to-equity of 1.67 is elevated, increasing financial risk.

Key Dynamics to Monitor

ITW profiles as a value stock while URI is a mature play — different risk/reward profiles.

URI carries more volatility with a beta of 1.83 — expect wider price swings.

URI is growing revenue faster at 7.2% — sustainability is the question.

URI generates stronger free cash flow (681M), providing more financial flexibility.

Bottom Line

URI scores higher overall (64/100 vs 60/100), backed by strong 15.3% margins. 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.

United Rentals Inc

INDUSTRIALS · RENTAL & LEASING SERVICES · USA

United Rentals, Inc. (NYSE: URI) is the world's largest equipment rental company, with about 13 percent of the North American market share as of 2019.

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