WallStSmart

Innovative Solutions and Support (ISSC)vsIllinois Tool Works Inc (ITW)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 17700% more annual revenue ($16.04B vs $90.14M). ISSC leads profitability with a 21.0% profit margin vs 19.1%. ISSC appears more attractively valued with a PEG of 0.83. ISSC earns a higher WallStSmart Score of 75/100 (B+).

ISSC

Strong Buy

75

out of 100

Grade: B+

Growth: 10.0Profit: 9.5Value: 7.3Quality: 5.0

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

ISSCUndervalued (+16.9%)

Margin of Safety

+16.9%

Fair Value

$22.85

Current Price

$20.23

$2.62 discount

UndervaluedFair: $22.85Overvalued

Intrinsic value data unavailable for ITW.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ISSC6 strengths · Avg: 9.2/10
Return on EquityProfitability
32.5%10/10

Every $100 of equity generates 33 in profit

Revenue GrowthGrowth
36.6%10/10

Revenue surging 36.6% year-over-year

EPS GrowthGrowth
450.0%10/10

Earnings expanding 450.0% YoY

Profit MarginProfitability
21.0%9/10

Keeps 21 of every $100 in revenue as profit

PEG RatioValuation
0.838/10

Growing faster than its price suggests

Operating MarginProfitability
28.9%8/10

Strong operational efficiency at 28.9%

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

ISSC1 concerns · Avg: 3.0/10
Market CapQuality
$372.81M3/10

Smaller company, higher risk/reward

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
23.8x2/10

Trading at 23.8x book value

Comparative Analysis Report

WallStSmart Research

Bull Case : ISSC

The strongest argument for ISSC centers on Return on Equity, Revenue Growth, EPS Growth. Profitability is solid with margins at 21.0% and operating margin at 28.9%. Revenue growth of 36.6% demonstrates continued momentum.

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 : ISSC

The primary concerns for ISSC are Market Cap.

Bear Case : ITW

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

Key Dynamics to Monitor

ISSC 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.

ISSC is growing revenue faster at 36.6% — sustainability is the question.

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

Bottom Line

ISSC scores higher overall (75/100 vs 58/100), backed by strong 21.0% margins and 36.6% revenue growth. Both earn "Strong 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.

Innovative Solutions and Support

INDUSTRIALS · AEROSPACE & DEFENSE · USA

Innovative Solutions and Support, Inc., a systems integrator, designs, develops, manufactures, sells, and provides flight guidance, auto-throttle, and cockpit display systems services in the United States and internationally. The company is headquartered in Exton, Pennsylvania.

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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