WallStSmart

Illinois Tool Works Inc (ITW)vsVeralto Corporation (VLTO)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 187% more annual revenue ($16.04B vs $5.59B). ITW leads profitability with a 19.1% profit margin vs 17.3%. ITW appears more attractively valued with a PEG of 2.69. VLTO earns a higher WallStSmart Score of 62/100 (C+).

ITW

Buy

58

out of 100

Grade: C

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

VLTO

Buy

62

out of 100

Grade: C+

Growth: 5.3Profit: 8.5Value: 3.3Quality: 5.0
Piotroski: 2/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ITW.

VLTOSignificantly Overvalued (-70.3%)

Margin of Safety

-70.3%

Fair Value

$55.80

Current Price

$88.20

$32.40 premium

UndervaluedFair: $55.80Overvalued

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%

VLTO2 strengths · Avg: 9.0/10
Return on EquityProfitability
36.5%10/10

Every $100 of equity generates 37 in profit

Operating MarginProfitability
23.8%8/10

Strong operational efficiency at 23.8%

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

VLTO2 concerns · Avg: 2.5/10
Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.322/10

Expensive relative to growth rate

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 : VLTO

The strongest argument for VLTO centers on Return on Equity, Operating Margin. Profitability is solid with margins at 17.3% and operating margin at 23.8%.

Bear Case : ITW

The primary concerns for ITW are Revenue Growth, Piotroski F-Score, PEG Ratio.

Bear Case : VLTO

The primary concerns for VLTO are Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

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

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

VLTO is growing revenue faster at 6.8% — sustainability is the question.

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

Bottom Line

VLTO scores higher overall (62/100 vs 58/100), backed by strong 17.3% 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.

Veralto Corporation

INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA

Veralto Corporation provides water supply services.

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