WallStSmart

Illinois Tool Works Inc (ITW)vsUL Solutions Inc. (ULS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 422% more annual revenue ($16.22B vs $3.11B). ITW leads profitability with a 19.3% profit margin vs 11.3%. ULS appears more attractively valued with a PEG of 2.24. ULS earns a higher WallStSmart Score of 62/100 (C+).

ITW

Buy

60

out of 100

Grade: C

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

ULS

Buy

62

out of 100

Grade: C+

Growth: 7.3Profit: 8.0Value: 3.7Quality: 6.5
Piotroski: 5/9Altman Z: 2.41

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%

ULS2 strengths · Avg: 8.5/10
Return on EquityProfitability
26.1%9/10

Every $100 of equity generates 26 in profit

EPS GrowthGrowth
36.4%8/10

Earnings expanding 36.4% YoY

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

ULS3 concerns · Avg: 3.3/10
PEG RatioValuation
2.244/10

Expensive relative to growth rate

Price/BookValuation
14.8x4/10

Trading at 14.8x book value

P/E RatioValuation
57.3x2/10

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 19.3% and operating margin at 25.7%.

Bull Case : ULS

The strongest argument for ULS centers on Return on Equity, EPS Growth.

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 : ULS

The primary concerns for ULS are PEG Ratio, Price/Book, P/E Ratio. A P/E of 57.3x leaves little room for execution misses.

Key Dynamics to Monitor

ITW carries more volatility with a beta of 1.05 — expect wider price swings.

ULS is growing revenue faster at 7.5% — 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

ULS scores higher overall (62/100 vs 60/100). 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.

UL Solutions Inc.

INDUSTRIALS · SPECIALTY BUSINESS SERVICES · USA

UL Solutions Inc. provides safety science services globally. The company is headquartered in Northbrook, Illinois with additional offices in North America, Asia Pacific, Africa, Europe, Latin America, and Middle East.

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