WallStSmart

Illinois Tool Works Inc (ITW)vsWaste Management Inc (WM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Waste Management Inc generates 57% more annual revenue ($25.41B vs $16.22B). ITW leads profitability with a 19.3% profit margin vs 11.0%. WM appears more attractively valued with a PEG of 2.16. ITW earns a higher WallStSmart Score of 60/100 (C).

ITW

Buy

60

out of 100

Grade: C

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

WM

Buy

58

out of 100

Grade: C

Growth: 5.3Profit: 7.5Value: 4.3Quality: 4.0
Piotroski: 5/9Altman Z: 1.54

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%

WM2 strengths · Avg: 9.0/10
Market CapQuality
$85.11B9/10

Large-cap with strong market position

Return on EquityProfitability
27.9%9/10

Every $100 of equity generates 28 in profit

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

WM4 concerns · Avg: 4.0/10
PEG RatioValuation
2.164/10

Expensive relative to growth rate

P/E RatioValuation
30.7x4/10

Premium valuation, high expectations priced in

Price/BookValuation
8.8x4/10

Trading at 8.8x book value

Revenue GrowthGrowth
3.5%4/10

3.5% revenue growth

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 : WM

The strongest argument for WM centers on Market Cap, Return on Equity.

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 : WM

The primary concerns for WM are PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 2.28 is elevated, increasing financial risk.

Key Dynamics to Monitor

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

ITW is growing revenue faster at 4.6% — sustainability is the question.

WM generates stronger free cash flow (851M), providing more financial flexibility.

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

Bottom Line

ITW scores higher overall (60/100 vs 58/100), 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.

Waste Management Inc

INDUSTRIALS · WASTE MANAGEMENT · USA

Waste Management, Inc. is an American waste management, comprehensive waste, and environmental services company in North America. Founded in 1968, the company is headquartered 800 Capitol in Houston, Texas.

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