WallStSmart

Illinois Tool Works Inc (ITW)vsRockwell Automation Inc (ROK)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 87% more annual revenue ($16.04B vs $8.57B). ITW leads profitability with a 19.1% profit margin vs 11.6%. ROK appears more attractively valued with a PEG of 1.98. ROK earns a higher WallStSmart Score of 65/100 (C+).

ITW

Buy

58

out of 100

Grade: C

Growth: 6.7Profit: 9.5Value: 4.7Quality: 5.8
Piotroski: 3/9Altman Z: 4.71

ROK

Buy

65

out of 100

Grade: C+

Growth: 6.7Profit: 7.5Value: 8.7Quality: 5.8
Piotroski: 5/9Altman Z: 2.08
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

ITWSignificantly Overvalued (-53.6%)

Margin of Safety

-53.6%

Fair Value

$194.04

Current Price

$266.45

$72.41 premium

UndervaluedFair: $194.04Overvalued
ROKUndervalued (+0.6%)

Margin of Safety

+0.6%

Fair Value

$409.03

Current Price

$360.65

$48.38 discount

UndervaluedFair: $409.03Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ITW4 strengths · Avg: 9.3/10
Return on EquityProfitability
93.7%10/10

Every $100 of equity generates 94 in profit

Altman Z-ScoreHealth
4.7110/10

Safe zone — low bankruptcy risk

Market CapQuality
$76.38B9/10

Large-cap with strong market position

Operating MarginProfitability
26.8%8/10

Strong operational efficiency at 26.8%

ROK2 strengths · Avg: 9.5/10
EPS GrowthGrowth
67.1%10/10

Earnings expanding 67.1% YoY

Return on EquityProfitability
23.7%9/10

Every $100 of equity generates 24 in profit

Areas to Watch

ITW4 concerns · Avg: 3.3/10
P/E RatioValuation
25.2x4/10

Moderate valuation

Revenue GrowthGrowth
4.1%4/10

4.1% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.612/10

Expensive relative to growth rate

ROK3 concerns · Avg: 3.3/10
PEG RatioValuation
1.984/10

Expensive relative to growth rate

Price/BookValuation
10.8x4/10

Trading at 10.8x book value

P/E RatioValuation
41.3x2/10

Premium valuation, high expectations priced in

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 19.1% and operating margin at 26.8%.

Bull Case : ROK

The strongest argument for ROK centers on EPS Growth, Return on Equity. Revenue growth of 11.9% demonstrates continued momentum.

Bear Case : ITW

The primary concerns for ITW are P/E Ratio, Revenue Growth, Piotroski F-Score.

Bear Case : ROK

The primary concerns for ROK are PEG Ratio, Price/Book, P/E Ratio. A P/E of 41.3x leaves little room for execution misses.

Key Dynamics to Monitor

ROK carries more volatility with a beta of 1.52 — expect wider price swings.

ROK is growing revenue faster at 11.9% — sustainability is the question.

ITW generates stronger free cash flow (858M), providing more financial flexibility.

Monitor SPECIALTY INDUSTRIAL MACHINERY industry trends, competitive dynamics, and regulatory changes.

Bottom Line

ROK scores higher overall (65/100 vs 58/100) and 11.9% revenue growth. 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.

Rockwell Automation Inc

INDUSTRIALS · SPECIALTY INDUSTRIAL MACHINERY · USA

Rockwell Automation, Inc. is an American provider of industrial automation and information technology. Its brands include Allen-Bradley and Factory Talk software.

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