Illinois Tool Works Inc (ITW)vsRXO Inc. (RXO)
ITW
Illinois Tool Works Inc
$254.76
-0.30%
INDUSTRIALS · Cap: $73.64B
RXO
RXO Inc.
$21.75
-5.88%
INDUSTRIALS · Cap: $3.81B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 182% more annual revenue ($16.22B vs $5.74B). ITW leads profitability with a 19.3% profit margin vs -1.7%. ITW appears more attractively valued with a PEG of 2.58. ITW earns a higher WallStSmart Score of 60/100 (C).
ITW
Buy60
out of 100
Grade: C
RXO
Hold37
out of 100
Grade: F
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ITW.
Margin of Safety
+69.8%
Fair Value
$54.13
Current Price
$21.75
$32.38 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
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
ROE of -6.3% — below average capital efficiency
Revenue declined 11.9%
Earnings declined 93.2%
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 : RXO
The strongest argument for RXO centers on Price/Book.
Bear Case : ITW
The primary concerns for ITW are Revenue Growth, Piotroski F-Score, PEG Ratio.
Bear Case : RXO
The primary concerns for RXO are PEG Ratio, Return on Equity, Revenue Growth.
Key Dynamics to Monitor
ITW profiles as a value stock while RXO is a turnaround play — different risk/reward profiles.
RXO carries more volatility with a beta of 1.85 — 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 37/100), backed by strong 19.3% margins. RXO offers better value entry with a 69.8% 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.
RXO Inc.
INDUSTRIALS · TRUCKING · USA
RXO Inc. is a premier transportation and logistics provider specializing in efficient freight solutions throughout North America. Utilizing cutting-edge technology and advanced data analytics, RXO enhances supply chain operations to ensure timely and cost-effective delivery for its clients. The company's unwavering commitment to sustainability and innovation positions it favorably within the evolving logistics landscape, appealing to institutional investors. With an extensive network and robust strategic partnerships, RXO adeptly meets diverse customer demands, solidifying its role as a significant player in the logistics sector.
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