Illinois Tool Works Inc (ITW)vsMcGrath RentCorp (MGRC)
ITW
Illinois Tool Works Inc
$258.01
-2.88%
INDUSTRIALS · Cap: $74.36B
MGRC
McGrath RentCorp
$109.38
-1.06%
INDUSTRIALS · Cap: $2.92B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 1599% more annual revenue ($16.04B vs $944.24M). ITW leads profitability with a 19.1% profit margin vs 16.6%. MGRC appears more attractively valued with a PEG of 1.18. MGRC earns a higher WallStSmart Score of 69/100 (B-).
ITW
Buy58
out of 100
Grade: C
MGRC
Strong Buy69
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ITW.
Margin of Safety
-26.4%
Fair Value
$91.46
Current Price
$109.38
$17.92 premium
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%
Reasonable price relative to book value
Strong operational efficiency at 28.9%
Earnings expanding 28.1% YoY
Areas to Watch
4.1% revenue growth
Weak financial health signals
Expensive relative to growth rate
Trading at 23.1x book value
No major concerns identified
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 : MGRC
The strongest argument for MGRC centers on Price/Book, Operating Margin, EPS Growth. Profitability is solid with margins at 16.6% and operating margin at 28.9%. PEG of 1.18 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.
Bear Case : MGRC
No major red flags identified for MGRC, but monitor valuation.
Key Dynamics to Monitor
ITW profiles as a value stock while MGRC is a mature play — different risk/reward profiles.
ITW carries more volatility with a beta of 1.15 — expect wider price swings.
MGRC is growing revenue faster at 5.3% — sustainability is the question.
ITW generates stronger free cash flow (858M), providing more financial flexibility.
Bottom Line
MGRC scores higher overall (69/100 vs 58/100), backed by strong 16.6% margins. Both earn "Strong 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.
McGrath RentCorp
INDUSTRIALS · RENTAL & LEASING SERVICES · USA
McGrath RentCorp is a business-to-business rental company in the United States and internationally. The company is headquartered in Livermore, California.
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