WallStSmart

Flowserve Corporation (FLS)vsIllinois Tool Works Inc (ITW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 255% more annual revenue ($16.47B vs $4.63B). ITW leads profitability with a 19.4% profit margin vs 8.0%. FLS appears more attractively valued with a PEG of 1.64. ITW earns a higher WallStSmart Score of 62/100 (C+).

FLS

Buy

54

out of 100

Grade: C-

Growth: 5.3Profit: 6.5Value: 4.7Quality: 6.5
Piotroski: 5/9Altman Z: 2.94

ITW

Buy

62

out of 100

Grade: C+

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

FLSOvervalued (-6.6%)

Margin of Safety

-6.6%

Fair Value

$81.16

Current Price

$74.46

$6.70 premium

UndervaluedFair: $81.16Overvalued

Intrinsic value data unavailable for ITW.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

FLS1 strengths · Avg: 8.0/10
EPS GrowthGrowth
24.2%8/10

Earnings expanding 24.2% YoY

ITW4 strengths · Avg: 9.3/10
Return on EquityProfitability
110.4%10/10

Every $100 of equity generates 110 in profit

Altman Z-ScoreHealth
4.7110/10

Safe zone — low bankruptcy risk

Market CapQuality
$76.37B9/10

Large-cap with strong market position

Operating MarginProfitability
26.9%8/10

Strong operational efficiency at 26.9%

Areas to Watch

FLS4 concerns · Avg: 3.3/10
PEG RatioValuation
1.644/10

Expensive relative to growth rate

P/E RatioValuation
26.8x4/10

Moderate valuation

Debt/EquityHealth
1.033/10

Elevated debt levels

Revenue GrowthGrowth
-1.6%2/10

Revenue declined 1.6%

ITW4 concerns · Avg: 2.5/10
PEG RatioValuation
2.464/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
26.4x2/10

Trading at 26.4x book value

Debt/EquityHealth
3.351/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : FLS

The strongest argument for FLS centers on EPS Growth.

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 26.9%.

Bear Case : FLS

The primary concerns for FLS are PEG Ratio, P/E Ratio, Debt/Equity.

Bear Case : ITW

The primary concerns for ITW are PEG Ratio, Piotroski F-Score, Price/Book. Debt-to-equity of 3.35 is elevated, increasing financial risk.

Key Dynamics to Monitor

FLS profiles as a value stock while ITW is a mature play — different risk/reward profiles.

FLS carries more volatility with a beta of 1.26 — expect wider price swings.

ITW is growing revenue faster at 6.1% — sustainability is the question.

ITW generates stronger free cash flow (631M), providing more financial flexibility.

Bottom Line

ITW scores higher overall (62/100 vs 54/100), 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.

Flowserve Corporation

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Flowserve Corporation designs, develops, manufactures, distributes and services industrial flow management equipment in the United States, Canada, Mexico, the Middle East, Africa, Asia Pacific and Europe. The company is headquartered in Irving, Texas.

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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