WallStSmart

Donaldson Company Inc (DCI)vsIllinois Tool Works Inc (ITW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 326% more annual revenue ($16.22B vs $3.81B). ITW leads profitability with a 19.3% profit margin vs 11.5%. DCI appears more attractively valued with a PEG of 1.65. DCI earns a higher WallStSmart Score of 66/100 (B-).

DCI

Strong Buy

66

out of 100

Grade: B-

Growth: 6.7Profit: 7.5Value: 4.0Quality: 8.0
Piotroski: 4/9Altman Z: 3.90

ITW

Buy

60

out of 100

Grade: C

Growth: 4.7Profit: 9.5Value: 5.0Quality: 5.0
Piotroski: 3/9Altman Z: 4.71
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DCISignificantly Overvalued (-73.0%)

Margin of Safety

-73.0%

Fair Value

$63.93

Current Price

$83.65

$19.72 premium

UndervaluedFair: $63.93Overvalued

Intrinsic value data unavailable for ITW.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DCI3 strengths · Avg: 9.7/10
EPS GrowthGrowth
108.3%10/10

Earnings expanding 108.3% YoY

Altman Z-ScoreHealth
3.9010/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
24.0%9/10

Every $100 of equity generates 24 in profit

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
$71.52B9/10

Large-cap with strong market position

Operating MarginProfitability
25.7%8/10

Strong operational efficiency at 25.7%

Areas to Watch

DCI1 concerns · Avg: 4.0/10
PEG RatioValuation
1.654/10

Expensive relative to growth rate

ITW4 concerns · Avg: 3.3/10
PEG RatioValuation
2.434/10

Expensive relative to growth rate

Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
22.6x2/10

Trading at 22.6x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : DCI

The strongest argument for DCI centers on EPS Growth, Altman Z-Score, Return on Equity.

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 25.7%.

Bear Case : DCI

The primary concerns for DCI are PEG Ratio.

Bear Case : ITW

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

Key Dynamics to Monitor

ITW carries more volatility with a beta of 1.05 — expect wider price swings.

DCI is growing revenue faster at 5.8% — sustainability is the question.

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

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

Bottom Line

DCI scores higher overall (66/100 vs 60/100). 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.

Donaldson Company Inc

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Donaldson Company, Inc. manufactures and sells filtration systems and replacement parts worldwide. The company is headquartered in Bloomington, Minnesota.

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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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