WallStSmart

Huntington Ingalls Industries Inc (HII)vsIllinois Tool Works Inc (ITW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 29% more annual revenue ($16.04B vs $12.48B). ITW leads profitability with a 19.1% profit margin vs 4.8%. HII appears more attractively valued with a PEG of 1.25. HII earns a higher WallStSmart Score of 63/100 (C+).

HII

Buy

63

out of 100

Grade: C+

Growth: 7.3Profit: 5.5Value: 4.7Quality: 5.8
Piotroski: 5/9Altman Z: 2.25

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

HIISignificantly Overvalued (-16.2%)

Margin of Safety

-16.2%

Fair Value

$337.96

Current Price

$362.17

$24.21 premium

UndervaluedFair: $337.96Overvalued

Intrinsic value data unavailable for ITW.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HII3 strengths · Avg: 8.0/10
Price/BookValuation
2.8x8/10

Reasonable price relative to book value

Revenue GrowthGrowth
15.7%8/10

15.7% revenue growth

EPS GrowthGrowth
28.1%8/10

Earnings expanding 28.1% YoY

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

HII1 concerns · Avg: 3.0/10
Profit MarginProfitability
4.8%3/10

4.8% margin — thin

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 : HII

The strongest argument for HII centers on Price/Book, Revenue Growth, EPS Growth. Revenue growth of 15.7% demonstrates continued momentum. PEG of 1.25 suggests the stock is reasonably priced for its 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 : HII

The primary concerns for HII are Profit Margin. Thin 4.8% margins leave little buffer for downturns.

Bear Case : ITW

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

Key Dynamics to Monitor

HII profiles as a growth stock while ITW is a value play — different risk/reward profiles.

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

HII is growing revenue faster at 15.7% — sustainability is the question.

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

Bottom Line

HII scores higher overall (63/100 vs 58/100) and 15.7% revenue growth. 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.

Huntington Ingalls Industries Inc

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Huntington Ingalls Industries (HII) is the largest military shipbuilding company in the United States as well as a provider of professional services to partners in government and industry.

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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