WallStSmart

Illinois Tool Works Inc (ITW)vsOtis Worldwide Corp (OTIS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 10% more annual revenue ($16.47B vs $14.91B). ITW leads profitability with a 19.4% profit margin vs 10.2%. OTIS appears more attractively valued with a PEG of 1.41. ITW earns a higher WallStSmart Score of 62/100 (C+).

ITW

Buy

62

out of 100

Grade: C+

Growth: 5.3Profit: 9.5Value: 5.0Quality: 5.0
Piotroski: 3/9Altman Z: 4.71

OTIS

Buy

58

out of 100

Grade: C

Growth: 5.3Profit: 6.5Value: 5.7Quality: 6.0
Piotroski: 5/9Altman Z: 1.83

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ITW4 strengths · Avg: 9.3/10
Return on EquityProfitability
110.4%10/10

Every $100 of equity generates 110 in profit

Altman Z-ScoreHealth
4.7110/10

Safe zone — low bankruptcy risk

Market CapQuality
$76.37B9/10

Large-cap with strong market position

Operating MarginProfitability
26.9%8/10

Strong operational efficiency at 26.9%

OTIS1 strengths · Avg: 10.0/10
Debt/EquityHealth
-1.5410/10

Conservative balance sheet, low leverage

Areas to Watch

ITW4 concerns · Avg: 2.5/10
PEG RatioValuation
2.464/10

Expensive relative to growth rate

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
26.4x2/10

Trading at 26.4x book value

Debt/EquityHealth
3.351/10

Elevated debt levels

OTIS2 concerns · Avg: 3.5/10
Altman Z-ScoreHealth
1.834/10

Grey zone — moderate risk

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

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 19.4% and operating margin at 26.9%.

Bull Case : OTIS

The strongest argument for OTIS centers on Debt/Equity. PEG of 1.41 suggests the stock is reasonably priced for its growth.

Bear Case : ITW

The primary concerns for ITW are PEG Ratio, Piotroski F-Score, Price/Book. Debt-to-equity of 3.35 is elevated, increasing financial risk.

Bear Case : OTIS

The primary concerns for OTIS are Altman Z-Score, Return on Equity.

Key Dynamics to Monitor

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

ITW carries more volatility with a beta of 1.00 — expect wider price swings.

OTIS is growing revenue faster at 7.3% — sustainability is the question.

ITW generates stronger free cash flow (631M), providing more financial flexibility.

Bottom Line

ITW scores higher overall (62/100 vs 58/100), backed by strong 19.4% 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.

Otis Worldwide Corp

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Otis Worldwide Corporation is an American company that develops, manufactures and markets elevators, escalators, moving walkways, and related equipment.

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