Illinois Tool Works Inc (ITW)vsWestinghouse Air Brake Technologies Corp (WAB)
ITW
Illinois Tool Works Inc
$252.72
+0.64%
INDUSTRIALS · Cap: $71.52B
WAB
Westinghouse Air Brake Technologies Corp
$260.40
-0.81%
INDUSTRIALS · Cap: $45.00B
Smart Verdict
WallStSmart Research — data-driven comparison
Illinois Tool Works Inc generates 41% more annual revenue ($16.22B vs $11.51B). ITW leads profitability with a 19.3% profit margin vs 10.5%. WAB appears more attractively valued with a PEG of 1.37. WAB earns a higher WallStSmart Score of 64/100 (C+).
ITW
Buy60
out of 100
Grade: C
WAB
Buy64
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ITW.
Margin of Safety
+8.5%
Fair Value
$277.92
Current Price
$260.40
$17.52 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 25.7%
No standout strengths identified
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
Distress zone — elevated risk
Weak financial health signals
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 : WAB
Revenue growth of 13.0% demonstrates continued momentum. PEG of 1.37 suggests the stock is reasonably priced for its 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 : WAB
The primary concerns for WAB are P/E Ratio, Altman Z-Score, Piotroski F-Score.
Key Dynamics to Monitor
ITW carries more volatility with a beta of 1.05 — expect wider price swings.
WAB is growing revenue faster at 13.0% — 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
WAB scores higher overall (64/100 vs 60/100) and 13.0% 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.
Westinghouse Air Brake Technologies Corp
INDUSTRIALS · RAILROADS · USA
Wabtec Corporation (derived from Westinghouse Air Brake Technologies Corporation) is an American company formed by the merger of the Westinghouse Air Brake Company (WABCO) and MotivePower Industries Corporation in 1999. It is headquartered in Pittsburgh, Pennsylvania.
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