Illinois Tool Works Inc (ITW)vsTransdigm Group Incorporated (TDG)
ITW
Illinois Tool Works Inc
$252.72
+0.64%
INDUSTRIALS · Cap: $71.52B
TDG
Transdigm Group Incorporated
$1,238.74
+0.87%
INDUSTRIALS · Cap: $69.75B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 71% more annual revenue ($16.22B vs $9.50B). TDG leads profitability with a 21.9% profit margin vs 19.3%. ITW appears more attractively valued with a PEG of 2.43. ITW earns a higher WallStSmart Score of 60/100 (C).
ITW
Buy60
out of 100
Grade: C
TDG
Buy57
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ITW.
Margin of Safety
-63.3%
Fair Value
$812.02
Current Price
$1238.74
$426.72 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 25.7%
Strong operational efficiency at 46.7%
Conservative balance sheet, low leverage
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
18.3% revenue growth
Areas to Watch
Expensive relative to growth rate
4.6% revenue growth
Weak financial health signals
Trading at 22.6x book value
Premium valuation, high expectations priced in
ROE of 0.0% — below average capital efficiency
Expensive relative to growth rate
Distress zone — elevated risk
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 25.7%.
Bull Case : TDG
The strongest argument for TDG centers on Operating Margin, Debt/Equity, Market Cap. Profitability is solid with margins at 21.9% and operating margin at 46.7%. Revenue growth of 18.3% demonstrates continued momentum.
Bear Case : ITW
The primary concerns for ITW are PEG Ratio, Revenue Growth, Piotroski F-Score. Debt-to-equity of 2.83 is elevated, increasing financial risk.
Bear Case : TDG
The primary concerns for TDG are P/E Ratio, Return on Equity, PEG Ratio.
Key Dynamics to Monitor
ITW profiles as a value stock while TDG is a growth play — different risk/reward profiles.
ITW carries more volatility with a beta of 1.05 — expect wider price swings.
TDG is growing revenue faster at 18.3% — sustainability is the question.
ITW generates stronger free cash flow (528M), providing more financial flexibility.
Bottom Line
ITW scores higher overall (60/100 vs 57/100), 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.
Transdigm Group Incorporated
INDUSTRIALS · AEROSPACE & DEFENSE · USA
TransDigm Group is a publicly traded aerospace manufacturing company headquartered in Cleveland, Ohio. TransDigm develops and manufactures engineered aerospace components.
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