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). These companies are all part of the "industrial products" sector.
Illinois Tool Works (NYSE:ITW) and Ingersoll Rand (NYSE:IR) 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, valuation, institutional ownership, risk, profitability, earnings, media sentiment, community ranking and analyst recommendations.
In the previous week, Illinois Tool Works had 10 more articles in the media than Ingersoll Rand. MarketBeat recorded 24 mentions for Illinois Tool Works and 14 mentions for Ingersoll Rand. Ingersoll Rand's average media sentiment score of 0.92 beat Illinois Tool Works' score of 0.64 indicating that Ingersoll Rand is being referred to more favorably in the news media.
Illinois Tool Works has a net margin of 18.36% compared to Ingersoll Rand's net margin of 11.32%. Illinois Tool Works' return on equity of 96.60% beat Ingersoll Rand's return on equity.
79.8% of Illinois Tool Works shares are owned by institutional investors. Comparatively, 95.3% of Ingersoll Rand shares are owned by institutional investors. 1.3% of Illinois Tool Works shares are owned by company insiders. Comparatively, 0.8% of Ingersoll Rand shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Illinois Tool Works currently has a consensus price target of $257.00, indicating a potential upside of 3.98%. Ingersoll Rand has a consensus price target of $92.73, indicating a potential downside of 0.56%. Given Illinois Tool Works' higher probable upside, research analysts plainly believe Illinois Tool Works is more favorable than Ingersoll Rand.
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.
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 a beta of 1.13, meaning that its stock price is 13% more volatile than the S&P 500. Comparatively, Ingersoll Rand has a beta of 1.44, meaning that its stock price is 44% more volatile than the S&P 500.
Illinois Tool Works pays an annual dividend of $5.60 per share and has a dividend yield of 2.3%. Ingersoll Rand pays an annual dividend of $0.08 per share and has a dividend yield of 0.1%. Illinois Tool Works pays out 57.5% of its earnings in the form of a dividend. Ingersoll Rand pays out 4.2% 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.
Summary
Illinois Tool Works and Ingersoll Rand tied by winning 10 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.
Skip ChartThis 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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