Illinois Tool Works Inc (ITW)vsLegalZoom.com Inc (LZ)
ITW
Illinois Tool Works Inc
$258.01
-2.88%
INDUSTRIALS · Cap: $74.36B
LZ
LegalZoom.com Inc
$6.45
-0.31%
INDUSTRIALS · Cap: $1.12B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 2022% more annual revenue ($16.04B vs $756.04M). ITW leads profitability with a 19.1% profit margin vs 2.0%. ITW trades at a lower P/E of 24.0x. ITW earns a higher WallStSmart Score of 58/100 (C).
ITW
Buy58
out of 100
Grade: C
LZ
Hold39
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ITW.
Margin of Safety
+42.9%
Fair Value
$12.45
Current Price
$6.45
$6.00 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 94 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 26.8%
17.7% revenue growth
Areas to Watch
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
Trading at 23.1x book value
Smaller company, higher risk/reward
2.0% margin — thin
Premium valuation, high expectations priced in
Earnings declined 57.9%
Comparative Analysis Report
WallStSmart ResearchBull 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 : LZ
The strongest argument for LZ centers on Revenue Growth. Revenue growth of 17.7% demonstrates continued momentum.
Bear Case : ITW
The primary concerns for ITW are Revenue Growth, Piotroski F-Score, PEG Ratio.
Bear Case : LZ
The primary concerns for LZ are Market Cap, Profit Margin, P/E Ratio. A P/E of 80.9x leaves little room for execution misses. Thin 2.0% margins leave little buffer for downturns.
Key Dynamics to Monitor
ITW profiles as a value stock while LZ is a growth play — different risk/reward profiles.
LZ carries more volatility with a beta of 1.30 — expect wider price swings.
LZ is growing revenue faster at 17.7% — sustainability is the question.
ITW generates stronger free cash flow (858M), providing more financial flexibility.
Bottom Line
ITW scores higher overall (58/100 vs 39/100), backed by strong 19.1% margins. LZ offers better value entry with a 42.9% 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.
LegalZoom.com Inc
INDUSTRIALS · SPECIALTY BUSINESS SERVICES · USA
LegalZoom.com, Inc. operates an online platform for legal and compliance solutions in the United States. The company is headquartered in Glendale, California.
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