Gates Industrial Corporation plc (GTES)vsIllinois Tool Works Inc (ITW)
GTES
Gates Industrial Corporation plc
$23.64
+3.01%
INDUSTRIALS · Cap: $5.93B
ITW
Illinois Tool Works Inc
$266.45
+0.53%
INDUSTRIALS · Cap: $76.38B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 366% more annual revenue ($16.04B vs $3.44B). ITW leads profitability with a 19.1% profit margin vs 7.3%. GTES trades at a lower P/E of 23.7x. ITW earns a higher WallStSmart Score of 58/100 (C).
GTES
Buy58
out of 100
Grade: C
ITW
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
+41.6%
Fair Value
$45.40
Current Price
$23.64
$21.76 discount
Margin of Safety
-53.6%
Fair Value
$194.04
Current Price
$266.45
$72.41 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Earnings expanding 36.4% YoY
Every $100 of equity generates 94 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 26.8%
Areas to Watch
3.2% revenue growth
Grey zone — moderate risk
ROE of 7.9% — below average capital efficiency
7.3% margin — thin
Moderate valuation
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : GTES
The strongest argument for GTES centers on Price/Book, 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 19.1% and operating margin at 26.8%.
Bear Case : GTES
The primary concerns for GTES are Revenue Growth, Altman Z-Score, Return on Equity.
Bear Case : ITW
The primary concerns for ITW are P/E Ratio, Revenue Growth, Piotroski F-Score.
Key Dynamics to Monitor
GTES carries more volatility with a beta of 1.23 — 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
GTES scores higher overall (58/100 vs 58/100). 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.
Gates Industrial Corporation plc
INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA
Gates Industrial Corporation plc manufactures and sells engineered power transmission and fluid power solutions worldwide. The company is headquartered in Denver, Colorado.
Visit Website →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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