WallStSmart

Illinois Tool Works Inc (ITW)vsKelly Services B Inc (KELYB)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 293% more annual revenue ($16.22B vs $4.13B). ITW leads profitability with a 19.3% profit margin vs -6.4%. KELYB appears more attractively valued with a PEG of 1.40. ITW earns a higher WallStSmart Score of 60/100 (C).

ITW

Buy

60

out of 100

Grade: C

Growth: 4.7Profit: 9.5Value: 4.3Quality: 5.0
Piotroski: 3/9Altman Z: 4.71

KELYB

Hold

49

out of 100

Grade: D+

Growth: 4.7Profit: 3.0Value: 7.0Quality: 8.0
Piotroski: 4/9Altman Z: 3.27
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ITW.

KELYBUndervalued (+52.0%)

Margin of Safety

+52.0%

Fair Value

$37.70

Current Price

$18.70

$19.00 discount

UndervaluedFair: $37.70Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ITW4 strengths · Avg: 9.3/10
Return on EquityProfitability
96.9%10/10

Every $100 of equity generates 97 in profit

Altman Z-ScoreHealth
4.7110/10

Safe zone — low bankruptcy risk

Market CapQuality
$71.95B9/10

Large-cap with strong market position

Operating MarginProfitability
25.7%8/10

Strong operational efficiency at 25.7%

KELYB4 strengths · Avg: 9.8/10
Price/BookValuation
0.7x10/10

Reasonable price relative to book value

EPS GrowthGrowth
333.3%10/10

Earnings expanding 333.3% YoY

Altman Z-ScoreHealth
3.2710/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.199/10

Conservative balance sheet, low leverage

Areas to Watch

ITW4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.522/10

Expensive relative to growth rate

Price/BookValuation
22.6x2/10

Trading at 22.6x book value

KELYB4 concerns · Avg: 2.5/10
Market CapQuality
$622.66M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
0.4%3/10

Operating margin of 0.4%

Return on EquityProfitability
-24.1%2/10

ROE of -24.1% — below average capital efficiency

Revenue GrowthGrowth
-10.7%2/10

Revenue declined 10.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : ITW

The strongest argument for ITW centers on Return on Equity, Altman Z-Score, Market Cap. Profitability is solid with margins at 19.3% and operating margin at 25.7%.

Bull Case : KELYB

The strongest argument for KELYB centers on Price/Book, EPS Growth, Altman Z-Score. PEG of 1.40 suggests the stock is reasonably priced for its growth.

Bear Case : ITW

The primary concerns for ITW are Revenue Growth, Piotroski F-Score, PEG Ratio. Debt-to-equity of 2.83 is elevated, increasing financial risk.

Bear Case : KELYB

The primary concerns for KELYB are Market Cap, Operating Margin, Return on Equity.

Key Dynamics to Monitor

ITW profiles as a value stock while KELYB is a turnaround play — different risk/reward profiles.

ITW carries more volatility with a beta of 1.05 — expect wider price swings.

ITW is growing revenue faster at 4.6% — sustainability is the question.

ITW generates stronger free cash flow (528M), providing more financial flexibility.

Bottom Line

ITW scores higher overall (60/100 vs 49/100), backed by strong 19.3% margins. KELYB offers better value entry with a 52.0% margin of safety. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

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.

Kelly Services B Inc

INDUSTRIALS · STAFFING & EMPLOYMENT SERVICES · USA

Kelly Services, Inc. provides workforce solutions to various industries. The company is headquartered in Troy, Michigan.

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