ABBNY vs. ITW, PH, CTAS, EMR, DE, ETN, HON, GWW, JCI, and FERG
Should you be buying ABB stock or one of its competitors? The main competitors of ABB include Illinois Tool Works (ITW), Parker-Hannifin (PH), Cintas (CTAS), Emerson Electric (EMR), Deere & Company (DE), Eaton (ETN), Honeywell International (HON), W.W. Grainger (GWW), Johnson Controls International (JCI), and Ferguson (FERG).
Illinois Tool Works (NYSE:ITW) and ABB (NYSE:ABBNY) are both large-cap industrial products companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, media sentiment, risk, institutional ownership, valuation, dividends, earnings, community ranking and analyst recommendations.
ABB has higher revenue and earnings than Illinois Tool Works. ABB is trading at a lower price-to-earnings ratio than Illinois Tool Works, indicating that it is currently the more affordable of the two stocks.
Illinois Tool Works has a net margin of 18.36% compared to Illinois Tool Works' net margin of 11.21%. ABB's return on equity of 96.60% beat Illinois Tool Works' return on equity.
Illinois Tool Works pays an annual dividend of $5.60 per share and has a dividend yield of 2.2%. ABB pays an annual dividend of $0.61 per share and has a dividend yield of 1.3%. Illinois Tool Works pays out 57.5% of its earnings in the form of a dividend. ABB pays out 31.4% 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.
79.8% of Illinois Tool Works shares are owned by institutional investors. Comparatively, 1.1% of ABB shares are owned by institutional investors. 1.3% of Illinois Tool Works shares are owned by insiders. Comparatively, 4.9% of ABB shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Illinois Tool Works currently has a consensus target price of $257.00, suggesting a potential upside of 2.29%. Given ABB's higher probable upside, research analysts plainly believe Illinois Tool Works is more favorable than ABB.
In the previous week, Illinois Tool Works had 4 more articles in the media than ABB. MarketBeat recorded 12 mentions for Illinois Tool Works and 8 mentions for ABB. ABB's average media sentiment score of 1.04 beat Illinois Tool Works' score of 0.41 indicating that Illinois Tool Works is being referred to more favorably in the media.
Illinois Tool Works has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500. Comparatively, ABB has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.
ABB received 97 more outperform votes than Illinois Tool Works when rated by MarketBeat users. Likewise, 62.77% of users gave ABB an outperform vote while only 57.31% of users gave Illinois Tool Works an outperform vote.
Summary
Illinois Tool Works beats ABB on 13 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding ABBNY 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.
ABBNY vs. The Competition
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