WallStSmart

Graco Inc (GGG)vsIllinois Tool Works Inc (ITW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 626% more annual revenue ($16.47B vs $2.27B). GGG leads profitability with a 23.5% profit margin vs 19.4%. GGG appears more attractively valued with a PEG of 2.32. ITW earns a higher WallStSmart Score of 62/100 (C+).

GGG

Buy

61

out of 100

Grade: C+

Growth: 4.7Profit: 8.5Value: 5.3Quality: 8.5
Piotroski: 4/9Altman Z: 4.89

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

GGGUndervalued (+9.6%)

Margin of Safety

+9.6%

Fair Value

$104.53

Current Price

$76.70

$27.83 discount

UndervaluedFair: $104.53Overvalued

Intrinsic value data unavailable for ITW.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GGG5 strengths · Avg: 9.2/10
Debt/EquityHealth
0.0210/10

Conservative balance sheet, low leverage

Altman Z-ScoreHealth
4.8910/10

Safe zone — low bankruptcy risk

Return on EquityProfitability
21.1%9/10

Every $100 of equity generates 21 in profit

Profit MarginProfitability
23.5%9/10

Keeps 24 of every $100 in revenue as profit

Operating MarginProfitability
29.7%8/10

Strong operational efficiency at 29.7%

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

GGG2 concerns · Avg: 4.0/10
PEG RatioValuation
2.324/10

Expensive relative to growth rate

Revenue GrowthGrowth
3.3%4/10

3.3% revenue growth

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 : GGG

The strongest argument for GGG centers on Debt/Equity, Altman Z-Score, Return on Equity. Profitability is solid with margins at 23.5% and operating margin at 29.7%.

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 : GGG

The primary concerns for GGG are PEG Ratio, Revenue Growth.

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

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

ITW carries more volatility with a beta of 1.00 — 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 61/100), 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.

Graco Inc

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Graco Inc. designs, manufactures and markets systems and equipment used to move, measure, control, dispense and spray fluids and powders worldwide. The company is headquartered in Minneapolis, 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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