WallStSmart

Illinois Tool Works Inc (ITW)vsLennox International Inc (LII)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 209% more annual revenue ($16.22B vs $5.26B). ITW leads profitability with a 19.3% profit margin vs 15.1%. LII appears more attractively valued with a PEG of 1.48. ITW earns a higher WallStSmart Score of 60/100 (C).

ITW

Buy

60

out of 100

Grade: C

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

LII

Buy

58

out of 100

Grade: C

Growth: 4.0Profit: 8.5Value: 5.7Quality: 6.0
Piotroski: 3/9Altman Z: 4.22

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ITW4 strengths · Avg: 9.3/10
Return on EquityProfitability
97.1%10/10

Every $100 of equity generates 97 in profit

Altman Z-ScoreHealth
4.7110/10

Safe zone — low bankruptcy risk

Market CapQuality
$71.52B9/10

Large-cap with strong market position

Operating MarginProfitability
25.7%8/10

Strong operational efficiency at 25.7%

LII2 strengths · Avg: 10.0/10
Return on EquityProfitability
64.5%10/10

Every $100 of equity generates 65 in profit

Altman Z-ScoreHealth
4.2210/10

Safe zone — low bankruptcy risk

Areas to Watch

ITW4 concerns · Avg: 3.3/10
PEG RatioValuation
2.434/10

Expensive relative to growth rate

Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
22.6x2/10

Trading at 22.6x book value

LII4 concerns · Avg: 3.0/10
Price/BookValuation
14.6x4/10

Trading at 14.6x book value

Debt/EquityHealth
1.613/10

Elevated debt levels

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-7.7%2/10

Earnings declined 7.7%

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 : LII

The strongest argument for LII centers on Return on Equity, Altman Z-Score. Profitability is solid with margins at 15.1% and operating margin at 14.3%. PEG of 1.48 suggests the stock is reasonably priced for its growth.

Bear Case : ITW

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

Bear Case : LII

The primary concerns for LII are Price/Book, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.61 is elevated, increasing financial risk.

Key Dynamics to Monitor

ITW profiles as a value stock while LII is a mature play — different risk/reward profiles.

LII carries more volatility with a beta of 1.19 — expect wider price swings.

LII is growing revenue faster at 5.8% — sustainability is the question.

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

Bottom Line

ITW scores higher overall (60/100 vs 58/100), backed by strong 19.3% margins. 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.

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.

Lennox International Inc

INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA

Lennox International Inc. designs, manufactures and markets a range of products for the heating, ventilation, air conditioning and refrigeration markets in the United States, Canada and internationally. The company is headquartered in Richardson, Texas.

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