WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 328% more annual revenue ($16.04B vs $3.75B). ITW leads profitability with a 19.1% profit margin vs 10.1%. DCI appears more attractively valued with a PEG of 1.75. ITW earns a higher WallStSmart Score of 58/100 (C).

DCI

Buy

51

out of 100

Grade: C-

Growth: 3.3Profit: 7.0Value: 7.3Quality: 8.5
Piotroski: 4/9Altman Z: 3.90

ITW

Buy

58

out of 100

Grade: C

Growth: 6.7Profit: 9.5Value: 4.7Quality: 5.8
Piotroski: 3/9Altman Z: 4.71
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

DCISignificantly Overvalued (-408.1%)

Margin of Safety

-408.1%

Fair Value

$21.76

Current Price

$87.12

$65.36 premium

UndervaluedFair: $21.76Overvalued
ITWSignificantly Overvalued (-53.6%)

Margin of Safety

-53.6%

Fair Value

$194.04

Current Price

$266.45

$72.41 premium

UndervaluedFair: $194.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

DCI2 strengths · Avg: 9.5/10
Altman Z-ScoreHealth
3.9010/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
24.3%9/10

Every $100 of equity generates 24 in profit

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
$76.38B9/10

Large-cap with strong market position

Operating MarginProfitability
26.8%8/10

Strong operational efficiency at 26.8%

Areas to Watch

DCI4 concerns · Avg: 3.5/10
PEG RatioValuation
1.754/10

Expensive relative to growth rate

P/E RatioValuation
27.2x4/10

Moderate valuation

Revenue GrowthGrowth
3.0%4/10

3.0% revenue growth

EPS GrowthGrowth
-1.3%2/10

Earnings declined 1.3%

ITW4 concerns · Avg: 3.3/10
P/E RatioValuation
25.2x4/10

Moderate valuation

Revenue GrowthGrowth
4.1%4/10

4.1% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.612/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : DCI

The strongest argument for DCI centers on 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 19.1% and operating margin at 26.8%.

Bear Case : DCI

The primary concerns for DCI are PEG Ratio, P/E Ratio, Revenue Growth.

Bear Case : ITW

The primary concerns for ITW are P/E Ratio, Revenue Growth, Piotroski F-Score.

Key Dynamics to Monitor

ITW carries more volatility with a beta of 1.12 — 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 51/100), 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.

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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