WallStSmart

Illinois Tool Works Inc (ITW)vsZurn Elkay Water Solutions Corporation (ZWS)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Illinois Tool Works Inc generates 822% more annual revenue ($16.04B vs $1.74B). ITW leads profitability with a 19.1% profit margin vs 12.3%. ZWS appears more attractively valued with a PEG of 1.79. ZWS earns a higher WallStSmart Score of 59/100 (C).

ITW

Buy

58

out of 100

Grade: C

Growth: 4.7Profit: 9.5Value: 4.3Quality: 5.8
Piotroski: 3/9Altman Z: 4.71

ZWS

Buy

59

out of 100

Grade: C

Growth: 7.3Profit: 6.5Value: 4.0Quality: 6.8
Piotroski: 5/9Altman Z: 1.53
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for ITW.

ZWSFair Value (-0.2%)

Margin of Safety

-0.2%

Fair Value

$51.43

Current Price

$51.96

$0.53 premium

UndervaluedFair: $51.43Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

ITW4 strengths · Avg: 9.3/10
Return on EquityProfitability
93.7%10/10

Every $100 of equity generates 94 in profit

Altman Z-ScoreHealth
4.7110/10

Safe zone — low bankruptcy risk

Market CapQuality
$74.36B9/10

Large-cap with strong market position

Operating MarginProfitability
26.8%8/10

Strong operational efficiency at 26.8%

ZWS1 strengths · Avg: 8.0/10
EPS GrowthGrowth
37.2%8/10

Earnings expanding 37.2% YoY

Areas to Watch

ITW4 concerns · Avg: 2.8/10
Revenue GrowthGrowth
4.1%4/10

4.1% revenue growth

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

PEG RatioValuation
2.692/10

Expensive relative to growth rate

Price/BookValuation
23.1x2/10

Trading at 23.1x book value

ZWS3 concerns · Avg: 3.3/10
PEG RatioValuation
1.794/10

Expensive relative to growth rate

Altman Z-ScoreHealth
1.534/10

Distress zone — elevated risk

P/E RatioValuation
41.4x2/10

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 19.1% and operating margin at 26.8%.

Bull Case : ZWS

The strongest argument for ZWS centers on EPS Growth. Revenue growth of 11.4% demonstrates continued momentum.

Bear Case : ITW

The primary concerns for ITW are Revenue Growth, Piotroski F-Score, PEG Ratio.

Bear Case : ZWS

The primary concerns for ZWS are PEG Ratio, Altman Z-Score, P/E Ratio. A P/E of 41.4x leaves little room for execution misses.

Key Dynamics to Monitor

ITW carries more volatility with a beta of 1.15 — expect wider price swings.

ZWS is growing revenue faster at 11.4% — sustainability is the question.

ITW generates stronger free cash flow (858M), providing more financial flexibility.

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

Bottom Line

ZWS scores higher overall (59/100 vs 58/100) and 11.4% 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.

Zurn Elkay Water Solutions Corporation

INDUSTRIALS · POLLUTION & TREATMENT CONTROLS · USA

Zurn Water Solutions Corporation designs, acquires, manufactures, and markets water system solutions that provide and improve water quality, safety, flow control, and conservation in and around non-residential buildings. The company is headquartered in Milwaukee, Wisconsin.

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