Illinois Tool Works Inc (ITW)vsWatts Water Technologies Inc (WTS)
ITW
Illinois Tool Works Inc
$266.45
+0.53%
INDUSTRIALS · Cap: $76.38B
WTS
Watts Water Technologies Inc
$297.79
-0.22%
INDUSTRIALS · Cap: $9.95B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 558% more annual revenue ($16.04B vs $2.44B). ITW leads profitability with a 19.1% profit margin vs 14.0%. ITW appears more attractively valued with a PEG of 2.61. WTS earns a higher WallStSmart Score of 58/100 (C).
ITW
Buy58
out of 100
Grade: C
WTS
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-53.6%
Fair Value
$194.04
Current Price
$266.45
$72.41 premium
Margin of Safety
+31.9%
Fair Value
$462.26
Current Price
$297.79
$164.47 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%
Safe zone — low bankruptcy risk
15.7% revenue growth
Earnings expanding 23.8% YoY
Areas to Watch
Moderate valuation
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
Moderate valuation
Expensive relative to growth rate
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 : WTS
The strongest argument for WTS centers on Altman Z-Score, Revenue Growth, EPS Growth. Revenue growth of 15.7% demonstrates continued momentum.
Bear Case : ITW
The primary concerns for ITW are P/E Ratio, Revenue Growth, Piotroski F-Score.
Bear Case : WTS
The primary concerns for WTS are P/E Ratio, PEG Ratio.
Key Dynamics to Monitor
ITW profiles as a value stock while WTS is a growth play — different risk/reward profiles.
WTS carries more volatility with a beta of 1.23 — expect wider price swings.
WTS is growing revenue faster at 15.7% — sustainability is the question.
ITW generates stronger free cash flow (858M), providing more financial flexibility.
Bottom Line
ITW scores higher overall (58/100 vs 58/100), backed by strong 19.1% margins. WTS offers better value entry with a 31.9% margin of safety. 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.
Watts Water Technologies Inc
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
Watts Water Technologies, Inc. designs, manufactures and sells products and systems that manage and conserve the flow of fluids and energy to, through and from buildings in the commercial and residential markets of the Americas, Europe, Asia-Pacific, the Middle East and Africa. . The company is headquartered in North Andover, Massachusetts.
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