WallStSmart

Illinois Tool Works Inc (ITW)vsLegence Corp. Class A Common stock (LGN)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 529% more annual revenue ($16.04B vs $2.55B). ITW leads profitability with a 19.1% profit margin vs -2.3%. ITW earns a higher WallStSmart Score of 58/100 (C).

ITW

Buy

58

out of 100

Grade: C

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

LGN

Avoid

35

out of 100

Grade: F

Growth: 8.0Profit: 3.0Value: 6.7Quality: 4.8
Piotroski: 3/9Altman Z: 1.30
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ITW.

LGNUndervalued (+34.0%)

Margin of Safety

+34.0%

Fair Value

$81.29

Current Price

$80.74

$0.55 discount

UndervaluedFair: $81.29Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

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%

LGN1 strengths · Avg: 10.0/10
Revenue GrowthGrowth
34.6%10/10

Revenue surging 34.6% year-over-year

Areas to Watch

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

LGN4 concerns · Avg: 3.5/10
Price/BookValuation
13.1x4/10

Trading at 13.1x book value

EPS GrowthGrowth
0.0%4/10

0.0% earnings growth

Operating MarginProfitability
1.2%3/10

Operating margin of 1.2%

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 19.1% and operating margin at 26.8%.

Bull Case : LGN

The strongest argument for LGN centers on Revenue Growth. Revenue growth of 34.6% demonstrates continued momentum.

Bear Case : ITW

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

Bear Case : LGN

The primary concerns for LGN are Price/Book, EPS Growth, Operating Margin.

Key Dynamics to Monitor

ITW profiles as a value stock while LGN is a hypergrowth play — different risk/reward profiles.

LGN is growing revenue faster at 34.6% — 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

ITW scores higher overall (58/100 vs 35/100), backed by strong 19.1% margins. LGN offers better value entry with a 34.0% margin of safety. Both earn "Buy" and "Avoid" 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.

Legence Corp. Class A Common stock

INDUSTRIALS · ENGINEERING & CONSTRUCTION · USA

Legence Corp. The company is headquartered in San Jose, California.

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