ITW vs. IR, PH, CTAS, EMR, ABBNY, GWW, JCI, FERG, DE, and XYL
Should you be buying Illinois Tool Works stock or one of its competitors? The main competitors of Illinois Tool Works include Ingersoll Rand (IR), Parker-Hannifin (PH), Cintas (CTAS), Emerson Electric (EMR), ABB (ABBNY), W.W. Grainger (GWW), Johnson Controls International (JCI), Ferguson (FERG), Deere & Company (DE), and Xylem (XYL).
Ingersoll Rand (NYSE:IR) and Illinois Tool Works (NYSE:ITW) are both large-cap industrial products companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, earnings, risk, community ranking, dividends, media sentiment, institutional ownership, analyst recommendations and profitability.
Ingersoll Rand currently has a consensus target price of $92.73, indicating a potential downside of 0.83%. Illinois Tool Works has a consensus target price of $257.00, indicating a potential upside of 3.53%. Given Ingersoll Rand's higher probable upside, analysts clearly believe Illinois Tool Works is more favorable than Ingersoll Rand.
Ingersoll Rand pays an annual dividend of $0.08 per share and has a dividend yield of 0.1%. Illinois Tool Works pays an annual dividend of $5.60 per share and has a dividend yield of 2.3%. Ingersoll Rand pays out 4.2% of its earnings in the form of a dividend. Illinois Tool Works pays out 57.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Illinois Tool Works has raised its dividend for 54 consecutive years. Illinois Tool Works is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Ingersoll Rand received 114 more outperform votes than Illinois Tool Works when rated by MarketBeat users. Likewise, 61.37% of users gave Ingersoll Rand an outperform vote while only 57.31% of users gave Illinois Tool Works an outperform vote.
Illinois Tool Works has higher revenue and earnings than Ingersoll Rand. Illinois Tool Works is trading at a lower price-to-earnings ratio than Ingersoll Rand, indicating that it is currently the more affordable of the two stocks.
95.3% of Ingersoll Rand shares are owned by institutional investors. Comparatively, 79.8% of Illinois Tool Works shares are owned by institutional investors. 0.8% of Ingersoll Rand shares are owned by insiders. Comparatively, 0.9% of Illinois Tool Works shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
In the previous week, Ingersoll Rand had 3 more articles in the media than Illinois Tool Works. MarketBeat recorded 14 mentions for Ingersoll Rand and 11 mentions for Illinois Tool Works. Illinois Tool Works' average media sentiment score of 0.99 beat Ingersoll Rand's score of 0.91 indicating that Ingersoll Rand is being referred to more favorably in the media.
Illinois Tool Works has a net margin of 18.36% compared to Illinois Tool Works' net margin of 11.32%. Ingersoll Rand's return on equity of 96.60% beat Illinois Tool Works' return on equity.
Ingersoll Rand has a beta of 1.44, suggesting that its stock price is 44% more volatile than the S&P 500. Comparatively, Illinois Tool Works has a beta of 1.13, suggesting that its stock price is 13% more volatile than the S&P 500.
Summary
Ingersoll Rand beats Illinois Tool Works on 11 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding ITW and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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