WallStSmart

Illinois Tool Works Inc (ITW)vsUnited Airlines Holdings Inc (UAL)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

United Airlines Holdings Inc generates 273% more annual revenue ($60.47B vs $16.22B). ITW leads profitability with a 19.3% profit margin vs 6.1%. ITW appears more attractively valued with a PEG of 2.43. UAL earns a higher WallStSmart Score of 67/100 (B-).

ITW

Buy

60

out of 100

Grade: C

Growth: 4.7Profit: 9.5Value: 5.0Quality: 5.0
Piotroski: 3/9Altman Z: 4.71

UAL

Strong Buy

67

out of 100

Grade: B-

Growth: 7.3Profit: 5.5Value: 4.7Quality: 4.5
Piotroski: 6/9Altman Z: 1.16
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ITW.

UALSignificantly Overvalued (-62.3%)

Margin of Safety

-62.3%

Fair Value

$65.13

Current Price

$104.94

$39.81 premium

UndervaluedFair: $65.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ITW4 strengths · Avg: 9.3/10
Return on EquityProfitability
97.1%10/10

Every $100 of equity generates 97 in profit

Altman Z-ScoreHealth
4.7110/10

Safe zone — low bankruptcy risk

Market CapQuality
$71.52B9/10

Large-cap with strong market position

Operating MarginProfitability
25.7%8/10

Strong operational efficiency at 25.7%

UAL5 strengths · Avg: 9.0/10
P/E RatioValuation
10.3x10/10

Attractively priced relative to earnings

EPS GrowthGrowth
84.5%10/10

Earnings expanding 84.5% YoY

Return on EquityProfitability
23.1%9/10

Every $100 of equity generates 23 in profit

Price/BookValuation
2.2x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$3.13B8/10

Generating 3.1B in free cash flow

Areas to Watch

ITW4 concerns · Avg: 3.3/10
PEG RatioValuation
2.434/10

Expensive relative to growth rate

Revenue GrowthGrowth
4.6%4/10

4.6% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Price/BookValuation
22.6x2/10

Trading at 22.6x book value

UAL4 concerns · Avg: 2.8/10
Profit MarginProfitability
6.1%3/10

6.1% margin — thin

Operating MarginProfitability
4.3%3/10

Operating margin of 4.3%

Debt/EquityHealth
1.953/10

Elevated debt levels

PEG RatioValuation
6.502/10

Expensive relative to growth rate

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 19.3% and operating margin at 25.7%.

Bull Case : UAL

The strongest argument for UAL centers on P/E Ratio, EPS Growth, Return on Equity. Revenue growth of 10.6% 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 : UAL

The primary concerns for UAL are Profit Margin, Operating Margin, Debt/Equity. Debt-to-equity of 1.95 is elevated, increasing financial risk.

Key Dynamics to Monitor

UAL carries more volatility with a beta of 1.21 — expect wider price swings.

UAL is growing revenue faster at 10.6% — sustainability is the question.

UAL generates stronger free cash flow (3.1B), providing more financial flexibility.

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

Bottom Line

UAL scores higher overall (67/100 vs 60/100) and 10.6% revenue growth. Both earn "Strong 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.

United Airlines Holdings Inc

INDUSTRIALS · AIRLINES · USA

United Airlines Holdings, Inc. (formerly known as United Continental Holdings, Inc., UAL Corporation, Allegis Corporation and founded originally as UAL, Inc.) is a publicly traded airline holding company headquartered in the Willis Tower in Chicago. UAH owns and operates United Airlines, Inc.

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