ITW vs. PH, IR, XYL, DOV, IEX, SNA, GGG, PNR, NDSN, and SWK
Should you be buying Illinois Tool Works stock or one of its competitors? The main competitors of Illinois Tool Works include Parker-Hannifin (PH), Ingersoll Rand (IR), Xylem (XYL), Dover (DOV), IDEX (IEX), Snap-on (SNA), Graco (GGG), Pentair (PNR), Nordson (NDSN), and Stanley Black & Decker (SWK). These companies are all part of the "industrial machinery" industry.
Illinois Tool Works (NYSE:ITW) and Parker-Hannifin (NYSE:PH) are both large-cap industrial products companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, media sentiment, community ranking, analyst recommendations, risk, profitability and earnings.
Illinois Tool Works has higher earnings, but lower revenue than Parker-Hannifin. Illinois Tool Works is trading at a lower price-to-earnings ratio than Parker-Hannifin, indicating that it is currently the more affordable of the two stocks.
In the previous week, Illinois Tool Works had 8 more articles in the media than Parker-Hannifin. MarketBeat recorded 21 mentions for Illinois Tool Works and 13 mentions for Parker-Hannifin. Parker-Hannifin's average media sentiment score of 1.14 beat Illinois Tool Works' score of 0.78 indicating that Parker-Hannifin is being referred to more favorably in the news media.
79.8% of Illinois Tool Works shares are owned by institutional investors. Comparatively, 82.4% of Parker-Hannifin shares are owned by institutional investors. 0.9% of Illinois Tool Works shares are owned by insiders. Comparatively, 1.0% of Parker-Hannifin shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Illinois Tool Works pays an annual dividend of $5.60 per share and has a dividend yield of 2.3%. Parker-Hannifin pays an annual dividend of $6.52 per share and has a dividend yield of 1.3%. Illinois Tool Works pays out 55.2% of its earnings in the form of a dividend. Parker-Hannifin pays out 30.7% 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 presently has a consensus price target of $256.44, indicating a potential upside of 6.67%. Parker-Hannifin has a consensus price target of $566.33, indicating a potential upside of 9.72%. Given Parker-Hannifin's stronger consensus rating and higher probable upside, analysts plainly believe Parker-Hannifin is more favorable than Illinois Tool Works.
Parker-Hannifin received 98 more outperform votes than Illinois Tool Works when rated by MarketBeat users. Likewise, 63.16% of users gave Parker-Hannifin an outperform vote while only 57.17% of users gave Illinois Tool Works an outperform vote.
Illinois Tool Works has a net margin of 19.07% compared to Parker-Hannifin's net margin of 13.95%. Illinois Tool Works' return on equity of 97.82% beat Parker-Hannifin's return on equity.
Illinois Tool Works has a beta of 1.11, suggesting that its share price is 11% more volatile than the S&P 500. Comparatively, Parker-Hannifin has a beta of 1.46, suggesting that its share price is 46% more volatile than the S&P 500.
Summary
Parker-Hannifin beats Illinois Tool Works on 13 of the 20 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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