WallStSmart

Ingersoll Rand Inc (IR)vsIllinois Tool Works Inc (ITW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 110% more annual revenue ($16.04B vs $7.65B). ITW leads profitability with a 19.1% profit margin vs 7.6%. IR appears more attractively valued with a PEG of 0.76. IR earns a higher WallStSmart Score of 61/100 (C+).

IR

Buy

61

out of 100

Grade: C+

Growth: 6.7Profit: 5.5Value: 4.7Quality: 7.0
Piotroski: 3/9Altman Z: 1.80

ITW

Buy

58

out of 100

Grade: C

Growth: 6.7Profit: 9.5Value: 4.7Quality: 5.8
Piotroski: 3/9Altman Z: 4.71
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

IRSignificantly Overvalued (-84.1%)

Margin of Safety

-84.1%

Fair Value

$52.55

Current Price

$83.65

$31.10 premium

UndervaluedFair: $52.55Overvalued
ITWSignificantly Overvalued (-53.6%)

Margin of Safety

-53.6%

Fair Value

$194.04

Current Price

$266.45

$72.41 premium

UndervaluedFair: $194.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

IR2 strengths · Avg: 8.0/10
PEG RatioValuation
0.768/10

Growing faster than its price suggests

Operating MarginProfitability
20.0%8/10

Strong operational efficiency at 20.0%

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
$76.38B9/10

Large-cap with strong market position

Operating MarginProfitability
26.8%8/10

Strong operational efficiency at 26.8%

Areas to Watch

IR4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.804/10

Grey zone — moderate risk

Return on EquityProfitability
5.8%3/10

ROE of 5.8% — below average capital efficiency

Profit MarginProfitability
7.6%3/10

7.6% margin — thin

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

ITW4 concerns · Avg: 3.3/10
P/E RatioValuation
25.2x4/10

Moderate valuation

Revenue GrowthGrowth
4.1%4/10

4.1% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.612/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : IR

The strongest argument for IR centers on PEG Ratio, Operating Margin. Revenue growth of 10.1% demonstrates continued momentum. PEG of 0.76 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 : IR

The primary concerns for IR are Altman Z-Score, Return on Equity, Profit Margin. A P/E of 57.3x leaves little room for execution misses.

Bear Case : ITW

The primary concerns for ITW are P/E Ratio, Revenue Growth, Piotroski F-Score.

Key Dynamics to Monitor

IR carries more volatility with a beta of 1.29 — expect wider price swings.

IR is growing revenue faster at 10.1% — 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

IR scores higher overall (61/100 vs 58/100) and 10.1% 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.

Ingersoll Rand Inc

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Ingersoll Rand Inc., founded in 1859, is an American worldwide provider of industrial equipment, technologies and related parts and services to a broad and diverse customer base through a family of brands.

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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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