Illinois Tool Works Inc (ITW)vsQuanex Building Products (NX)
ITW
Illinois Tool Works Inc
$260.52
+2.35%
INDUSTRIALS · Cap: $73.63B
NX
Quanex Building Products
$20.11
+2.65%
INDUSTRIALS · Cap: $899.93M
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 778% more annual revenue ($16.22B vs $1.85B). ITW leads profitability with a 19.3% profit margin vs -13.0%. NX appears more attractively valued with a PEG of 0.66. ITW earns a higher WallStSmart Score of 60/100 (C).
ITW
Buy60
out of 100
Grade: C
NX
Hold47
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ITW.
Margin of Safety
+77.3%
Fair Value
$98.50
Current Price
$20.11
$78.39 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 97 in profit
Safe zone — low bankruptcy risk
Large-cap with strong market position
Strong operational efficiency at 25.4%
Reasonable price relative to book value
Growing faster than its price suggests
Areas to Watch
4.6% revenue growth
Weak financial health signals
Expensive relative to growth rate
Trading at 23.3x book value
2.3% revenue growth
Smaller company, higher risk/reward
Operating margin of 0.7%
ROE of -28.2% — below average capital efficiency
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 19.3% and operating margin at 25.4%.
Bull Case : NX
The strongest argument for NX centers on Price/Book, PEG Ratio. PEG of 0.66 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 : NX
The primary concerns for NX are Revenue Growth, Market Cap, Operating Margin.
Key Dynamics to Monitor
ITW profiles as a value stock while NX is a turnaround play — different risk/reward profiles.
ITW carries more volatility with a beta of 1.15 — expect wider price swings.
ITW is growing revenue faster at 4.6% — sustainability is the question.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ITW scores higher overall (60/100 vs 47/100), backed by strong 19.3% margins. NX offers better value entry with a 77.3% 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.
Quanex Building Products
INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA
Quanex Building Products Corporation (NX) is a prominent manufacturer of innovative engineered materials and components for the building and construction sector, distinguished by its dedication to quality and sustainability. The company's extensive product offerings encompass energy-efficient window and door systems, alongside advanced engineered wood products, effectively addressing the needs of both residential and commercial markets. With an emphasis on operational excellence and a strong foundation in material science, Quanex utilizes its proprietary technologies to provide exceptional value, securing a competitive position in a rapidly evolving industry landscape focused on sustainable construction practices.
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