WallStSmart

Illinois Tool Works Inc (ITW)vsWaste Management Inc (WM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Waste Management Inc generates 58% more annual revenue ($25.41B vs $16.04B). ITW leads profitability with a 19.1% profit margin vs 11.0%. WM appears more attractively valued with a PEG of 2.35. WM earns a higher WallStSmart Score of 58/100 (C).

ITW

Buy

58

out of 100

Grade: C

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

WM

Buy

58

out of 100

Grade: C

Growth: 5.3Profit: 7.5Value: 3.3Quality: 4.5
Piotroski: 4/9
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ITW.

WMSignificantly Overvalued (-80.0%)

Margin of Safety

-80.0%

Fair Value

$130.38

Current Price

$232.55

$102.17 premium

UndervaluedFair: $130.38Overvalued

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%

WM2 strengths · Avg: 9.0/10
Market CapQuality
$93.39B9/10

Large-cap with strong market position

Return on EquityProfitability
29.9%9/10

Every $100 of equity generates 30 in profit

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

WM4 concerns · Avg: 4.0/10
PEG RatioValuation
2.354/10

Expensive relative to growth rate

P/E RatioValuation
33.6x4/10

Premium valuation, high expectations priced in

Price/BookValuation
9.4x4/10

Trading at 9.4x book value

Revenue GrowthGrowth
3.5%4/10

3.5% revenue growth

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 : WM

The strongest argument for WM centers on Market Cap, Return on Equity.

Bear Case : ITW

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

Bear Case : WM

The primary concerns for WM are PEG Ratio, P/E Ratio, Price/Book.

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.

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

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

Bottom Line

ITW scores higher overall (58/100 vs 58/100), backed by strong 19.1% 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.

Waste Management Inc

INDUSTRIALS · WASTE MANAGEMENT · USA

Waste Management, Inc. is an American waste management, comprehensive waste, and environmental services company in North America. Founded in 1968, the company is headquartered 800 Capitol in Houston, Texas.

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