Illinois Tool Works Inc (ITW)vsPenske Automotive Group Inc (PAG)
ITW
Illinois Tool Works Inc
$254.76
-0.30%
INDUSTRIALS · Cap: $73.64B
PAG
Penske Automotive Group Inc
$173.81
+1.28%
CONSUMER CYCLICAL · Cap: $11.16B
Smart Verdict
WallStSmart Research — data-driven comparison
Penske Automotive Group Inc generates 96% more annual revenue ($31.72B vs $16.22B). ITW leads profitability with a 19.3% profit margin vs 2.9%. PAG appears more attractively valued with a PEG of 2.09. ITW earns a higher WallStSmart Score of 60/100 (C).
ITW
Buy60
out of 100
Grade: C
PAG
Buy51
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ITW.
Margin of Safety
-1.7%
Fair Value
$170.26
Current Price
$173.81
$3.55 premium
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%
Attractively priced relative to earnings
Reasonable price relative to book value
Areas to Watch
4.6% revenue growth
Weak financial health signals
Expensive relative to growth rate
Trading at 22.8x book value
Expensive relative to growth rate
2.9% margin — thin
Operating margin of 3.7%
Elevated debt levels
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 : PAG
The strongest argument for PAG centers on P/E Ratio, Price/Book.
Bear Case : ITW
The primary concerns for ITW are Revenue Growth, Piotroski F-Score, PEG Ratio.
Bear Case : PAG
The primary concerns for PAG are PEG Ratio, Profit Margin, Operating Margin. Debt-to-equity of 1.56 is elevated, increasing financial risk. Thin 2.9% margins leave little buffer for downturns.
Key Dynamics to Monitor
ITW carries more volatility with a beta of 1.05 — expect wider price swings.
ITW is growing revenue faster at 4.6% — sustainability is the question.
ITW generates stronger free cash flow (528M), providing more financial flexibility.
Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.
Bottom Line
ITW scores higher overall (60/100 vs 51/100), backed by strong 19.3% 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.
Penske Automotive Group Inc
CONSUMER CYCLICAL · AUTO & TRUCK DEALERSHIPS · USA
Penske Automotive Group, Inc., a diversified transportation services company, operates commercial and automotive truck dealerships. The company is headquartered in Bloomfield Hills, Michigan.
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