WallStSmart

Illinois Tool Works Inc (ITW)vsAdvanced Drainage Systems Inc (WMS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 443% more annual revenue ($16.22B vs $2.99B). ITW leads profitability with a 19.3% profit margin vs 15.8%. WMS appears more attractively valued with a PEG of 1.21. WMS earns a higher WallStSmart Score of 66/100 (B-).

ITW

Buy

60

out of 100

Grade: C

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

WMS

Strong Buy

66

out of 100

Grade: B-

Growth: 4.7Profit: 8.5Value: 4.7Quality: 7.5
Piotroski: 4/9Altman Z: 2.74
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ITW.

WMSSignificantly Overvalued (-67.6%)

Margin of Safety

-67.6%

Fair Value

$103.37

Current Price

$144.08

$40.71 premium

UndervaluedFair: $103.37Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ITW4 strengths · Avg: 9.3/10
Return on EquityProfitability
96.9%10/10

Every $100 of equity generates 97 in profit

Altman Z-ScoreHealth
4.7110/10

Safe zone — low bankruptcy risk

Market CapQuality
$73.63B9/10

Large-cap with strong market position

Operating MarginProfitability
25.4%8/10

Strong operational efficiency at 25.4%

WMS2 strengths · Avg: 8.5/10
Return on EquityProfitability
27.6%9/10

Every $100 of equity generates 28 in profit

Operating MarginProfitability
21.0%8/10

Strong operational efficiency at 21.0%

Areas to Watch

ITW4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.552/10

Expensive relative to growth rate

Price/BookValuation
22.9x2/10

Trading at 22.9x book value

WMS1 concerns · Avg: 4.0/10
Revenue GrowthGrowth
0.4%4/10

0.4% 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 19.3% and operating margin at 25.4%.

Bull Case : WMS

The strongest argument for WMS centers on Return on Equity, Operating Margin. Profitability is solid with margins at 15.8% and operating margin at 21.0%. PEG of 1.21 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 : WMS

The primary concerns for WMS are Revenue Growth.

Key Dynamics to Monitor

WMS carries more volatility with a beta of 1.33 — expect wider price swings.

ITW is growing revenue faster at 4.6% — sustainability is the question.

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

Bottom Line

WMS scores higher overall (66/100 vs 60/100), backed by strong 15.8% margins. 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.

Advanced Drainage Systems Inc

INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA

Advanced Drainage Systems, Inc. designs, manufactures and markets thermoplastic corrugated pipe and related water management products and drainage solutions for use in the underground construction and infrastructure market in the United States, Canada, Mexico and internationally. The company is headquartered in Hilliard, Ohio.

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