WallStSmart

Illinois Tool Works Inc (ITW)vsLATAM Airlines Group S.A. (LTM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 8% more annual revenue ($16.22B vs $15.00B). ITW leads profitability with a 19.3% profit margin vs 11.2%. ITW appears more attractively valued with a PEG of 2.43. LTM earns a higher WallStSmart Score of 65/100 (C+).

ITW

Buy

60

out of 100

Grade: C

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

LTM

Buy

65

out of 100

Grade: C+

Growth: 8.7Profit: 8.0Value: 5.7Quality: 3.5
Piotroski: 4/9Altman Z: 1.27

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%

LTM4 strengths · Avg: 9.5/10
P/E RatioValuation
9.3x10/10

Attractively priced relative to earnings

Return on EquityProfitability
86.9%10/10

Every $100 of equity generates 87 in profit

EPS GrowthGrowth
70.7%10/10

Earnings expanding 70.7% YoY

Revenue GrowthGrowth
21.9%8/10

Revenue surging 21.9% year-over-year

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

LTM4 concerns · Avg: 2.3/10
Price/BookValuation
8.1x4/10

Trading at 8.1x book value

PEG RatioValuation
2.582/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.272/10

Distress zone — elevated risk

Debt/EquityHealth
4.341/10

Elevated debt levels

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 : LTM

The strongest argument for LTM centers on P/E Ratio, Return on Equity, EPS Growth. Revenue growth of 21.9% demonstrates continued momentum.

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 : LTM

The primary concerns for LTM are Price/Book, PEG Ratio, Altman Z-Score. Debt-to-equity of 4.34 is elevated, increasing financial risk.

Key Dynamics to Monitor

ITW profiles as a value stock while LTM is a growth play — different risk/reward profiles.

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

LTM is growing revenue faster at 21.9% — sustainability is the question.

LTM generates stronger free cash flow (588M), providing more financial flexibility.

Bottom Line

LTM scores higher overall (65/100 vs 60/100) and 21.9% 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.

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.

LATAM Airlines Group S.A.

INDUSTRIALS · AIRLINES · USA

LATAM Airlines Group SA, provides passenger and cargo air transport services in Peru, Argentina, the United States, Europe, Colombia, Brazil, Ecuador, Chile, Asia Pacific and the rest of Latin America.

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