Illinois Tool Works Inc (ITW)vsZTO Express (Cayman) Inc (ZTO)
ITW
Illinois Tool Works Inc
$252.72
+0.64%
INDUSTRIALS · Cap: $71.52B
ZTO
ZTO Express (Cayman) Inc
$22.28
-1.02%
INDUSTRIALS · Cap: $17.15B
Smart Verdict
WallStSmart Research — data-driven comparison
ZTO Express (Cayman) Inc generates 217% more annual revenue ($51.49B vs $16.22B). ITW leads profitability with a 19.3% profit margin vs 17.9%. ZTO appears more attractively valued with a PEG of 1.18. ZTO earns a higher WallStSmart Score of 70/100 (B-).
ITW
Buy60
out of 100
Grade: C
ZTO
Strong Buy70
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for ITW.
Margin of Safety
+64.6%
Fair Value
$70.28
Current Price
$22.28
$48.00 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%
Safe zone — low bankruptcy risk
Attractively priced relative to earnings
Reasonable price relative to book value
Revenue surging 22.0% year-over-year
Generating 2.8B in free cash flow
Areas to Watch
Expensive relative to growth rate
4.6% revenue growth
Weak financial health signals
Trading at 22.6x book value
No major concerns identified
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 : ZTO
The strongest argument for ZTO centers on Altman Z-Score, P/E Ratio, Price/Book. Profitability is solid with margins at 17.9% and operating margin at 19.2%. Revenue growth of 22.0% 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 : ZTO
No major red flags identified for ZTO, but monitor valuation.
Key Dynamics to Monitor
ITW profiles as a value stock while ZTO is a growth play — different risk/reward profiles.
ITW carries more volatility with a beta of 1.05 — expect wider price swings.
ZTO is growing revenue faster at 22.0% — sustainability is the question.
ZTO generates stronger free cash flow (2.8B), providing more financial flexibility.
Bottom Line
ZTO scores higher overall (70/100 vs 60/100), backed by strong 17.9% margins and 22.0% 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.
ZTO Express (Cayman) Inc
INDUSTRIALS · INTEGRATED FREIGHT & LOGISTICS · China
ZTO Express (Cayman) Inc. provides express delivery and other value-added logistics services in the People's Republic of China. The company is headquartered in Shanghai, the People's Republic of China.
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