WallStSmart

WW Grainger Inc (GWW)vsIllinois Tool Works Inc (ITW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

WW Grainger Inc generates 12% more annual revenue ($17.94B vs $16.04B). ITW leads profitability with a 19.1% profit margin vs 9.5%. GWW appears more attractively valued with a PEG of 1.95. ITW earns a higher WallStSmart Score of 58/100 (C).

GWW

Buy

50

out of 100

Grade: C-

Growth: 4.0Profit: 8.0Value: 3.3Quality: 6.3
Piotroski: 5/9

ITW

Buy

58

out of 100

Grade: C

Growth: 4.7Profit: 9.5Value: 4.3Quality: 5.8
Piotroski: 3/9Altman Z: 4.71
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

GWWSignificantly Overvalued (-82.5%)

Margin of Safety

-82.5%

Fair Value

$658.96

Current Price

$1161.35

$502.39 premium

UndervaluedFair: $658.96Overvalued

Intrinsic value data unavailable for ITW.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

GWW2 strengths · Avg: 9.5/10
Return on EquityProfitability
46.1%10/10

Every $100 of equity generates 46 in profit

Market CapQuality
$54.97B9/10

Large-cap with strong market position

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
$74.36B9/10

Large-cap with strong market position

Operating MarginProfitability
26.8%8/10

Strong operational efficiency at 26.8%

Areas to Watch

GWW4 concerns · Avg: 4.0/10
PEG RatioValuation
1.954/10

Expensive relative to growth rate

P/E RatioValuation
32.8x4/10

Premium valuation, high expectations priced in

Price/BookValuation
14.7x4/10

Trading at 14.7x book value

Revenue GrowthGrowth
4.5%4/10

4.5% revenue growth

ITW4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.1%4/10

4.1% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.692/10

Expensive relative to growth rate

Price/BookValuation
23.1x2/10

Trading at 23.1x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : GWW

The strongest argument for GWW centers on Return on Equity, Market Cap.

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 : GWW

The primary concerns for GWW are PEG Ratio, P/E Ratio, Price/Book.

Bear Case : ITW

The primary concerns for ITW are Revenue Growth, Piotroski F-Score, PEG Ratio.

Key Dynamics to Monitor

ITW carries more volatility with a beta of 1.15 — expect wider price swings.

GWW is growing revenue faster at 4.5% — sustainability is the question.

ITW generates stronger free cash flow (858M), providing more financial flexibility.

Monitor INDUSTRIAL DISTRIBUTION industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ITW scores higher overall (58/100 vs 50/100), 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.

WW Grainger Inc

INDUSTRIALS · INDUSTRIAL DISTRIBUTION · USA

W. W. Grainger, Inc. is an American Fortune 500 industrial supply company founded in 1927 in Chicago by William W. (Bill) Grainger.

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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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