WallStSmart

ATS Corporation (ATS)vsIllinois Tool Works Inc (ITW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 454% more annual revenue ($16.47B vs $2.97B). ITW leads profitability with a 19.4% profit margin vs 2.4%. ITW trades at a lower P/E of 26.1x. ITW earns a higher WallStSmart Score of 62/100 (C+).

ATS

Buy

57

out of 100

Grade: C

Growth: 8.0Profit: 4.5Value: 3.7Quality: 6.0
Piotroski: 5/9Altman Z: 1.67

ITW

Buy

62

out of 100

Grade: C+

Growth: 5.3Profit: 9.5Value: 4.3Quality: 5.0
Piotroski: 3/9Altman Z: 4.71
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ATSOvervalued (-12.3%)

Margin of Safety

-12.3%

Fair Value

$27.39

Current Price

$21.13

$6.26 premium

UndervaluedFair: $27.39Overvalued

Intrinsic value data unavailable for ITW.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ATS3 strengths · Avg: 9.3/10
Revenue GrowthGrowth
30.1%10/10

Revenue surging 30.1% year-over-year

EPS GrowthGrowth
358.0%10/10

Earnings expanding 358.0% YoY

Price/BookValuation
1.6x8/10

Reasonable price relative to book value

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
$84.89B9/10

Large-cap with strong market position

Operating MarginProfitability
26.7%8/10

Strong operational efficiency at 26.7%

Areas to Watch

ATS4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.674/10

Distress zone — elevated risk

Return on EquityProfitability
4.0%3/10

ROE of 4.0% — below average capital efficiency

Profit MarginProfitability
2.4%3/10

2.4% margin — thin

Operating MarginProfitability
3.1%3/10

Operating margin of 3.1%

ITW4 concerns · Avg: 2.8/10
P/E RatioValuation
26.1x4/10

Moderate valuation

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.862/10

Expensive relative to growth rate

Price/BookValuation
26.5x2/10

Trading at 26.5x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : ATS

The strongest argument for ATS centers on Revenue Growth, EPS Growth, Price/Book. Revenue growth of 30.1% demonstrates continued momentum.

Bull Case : ITW

The strongest argument for ITW centers on Return on Equity, Altman Z-Score, Market Cap. Profitability is solid with margins at 19.4% and operating margin at 26.7%.

Bear Case : ATS

The primary concerns for ATS are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 52.4x leaves little room for execution misses. Thin 2.4% margins leave little buffer for downturns.

Bear Case : ITW

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

Key Dynamics to Monitor

ATS profiles as a hypergrowth stock while ITW is a mature play — different risk/reward profiles.

ATS carries more volatility with a beta of 1.25 — expect wider price swings.

ATS is growing revenue faster at 30.1% — sustainability is the question.

ITW generates stronger free cash flow (528M), providing more financial flexibility.

Bottom Line

ITW scores higher overall (62/100 vs 57/100), backed by strong 19.4% 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.

ATS Corporation

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

ATS Corporation is a leading provider of automated manufacturing solutions, specializing in systems integration and advanced automation technologies across a variety of sectors, including automotive, medical devices, and electronics. The company is renowned for its ability to design and deliver tailored manufacturing equipment that boosts productivity and enhances operational efficiency. With a strong global presence and a dedication to innovation and sustainability, ATS is well-positioned to meet the evolving demands of its clients while capitalizing on the rapidly expanding automation market. This unique positioning makes ATS an attractive investment opportunity for institutional investors looking to engage in the future of manufacturing.

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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.

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