Illinois Tool Works (ITW) Competitors

Parker-Hannifin (NYSE:PH) and Illinois Tool Works (NYSE:ITW) are both large-cap industrial products companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, community ranking, earnings, profitability, dividends, valuation, institutional ownership and media sentiment.

Which has more volatility & risk, PH or ITW?

Parker-Hannifin has a beta of 1.45, suggesting that its stock price is 45% more volatile than the S&P 500. Comparatively, Illinois Tool Works has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500.

Does the media prefer PH or ITW?

In the previous week, Parker-Hannifin and Parker-Hannifin both had 31 articles in the media. Parker-Hannifin's average media sentiment score of 1.32 beat Illinois Tool Works' score of 1.25 indicating that Parker-Hannifin is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Parker-Hannifin	21 Very Positive mention(s)	1 Positive mention(s)	8 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Illinois Tool Works	25 Very Positive mention(s)	2 Positive mention(s)	2 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Do analysts prefer PH or ITW?

Parker-Hannifin presently has a consensus price target of $722.94, indicating a potential upside of 6.34%. Illinois Tool Works has a consensus price target of $270.11, indicating a potential upside of 4.02%. Given Parker-Hannifin's stronger consensus rating and higher probable upside, equities research analysts plainly believe Parker-Hannifin is more favorable than Illinois Tool Works.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Parker-Hannifin	0 Sell rating(s)	2 Hold rating(s)	14 Buy rating(s)	0 Strong Buy rating(s)	2.88
Illinois Tool Works	2 Sell rating(s)	5 Hold rating(s)	2 Buy rating(s)	1 Strong Buy rating(s)	2.20

Does the MarketBeat Community believe in PH or ITW?

Parker-Hannifin received 112 more outperform votes than Illinois Tool Works when rated by MarketBeat users. Likewise, 63.84% of users gave Parker-Hannifin an outperform vote while only 56.51% of users gave Illinois Tool Works an outperform vote.

Company	Underperform	Outperform
Parker-Hannifin	Outperform Votes 724 63.84%	Underperform Votes 410 36.16%
Illinois Tool Works	Outperform Votes 612 56.51%	Underperform Votes 471 43.49%

Is PH or ITW more profitable?

Illinois Tool Works has a net margin of 21.66% compared to Parker-Hannifin's net margin of 14.47%. Illinois Tool Works' return on equity of 97.06% beat Parker-Hannifin's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Parker-Hannifin	14.47%	27.95%	11.33%
Illinois Tool Works	21.66%	97.06%	19.22%

Which has better earnings & valuation, PH or ITW?

Illinois Tool Works has lower revenue, but higher earnings 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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Parker-Hannifin	$19.93B	4.39	$2.84B	$22.14	30.71
Illinois Tool Works	$16.11B	4.76	$2.96B	$11.56	22.46

Do insiders & institutionals have more ownership in PH or ITW?

82.4% of Parker-Hannifin shares are owned by institutional investors. Comparatively, 79.8% of Illinois Tool Works shares are owned by institutional investors. 0.4% of Parker-Hannifin shares are owned by company insiders. Comparatively, 0.9% of Illinois Tool Works shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Is PH or ITW a better dividend stock?

Parker-Hannifin pays an annual dividend of $6.52 per share and has a dividend yield of 1.0%. Illinois Tool Works pays an annual dividend of $6.00 per share and has a dividend yield of 2.3%. Parker-Hannifin pays out 29.4% of its earnings in the form of a dividend. Illinois Tool Works pays out 51.9% 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 increased its dividend for 30 consecutive years. Illinois Tool Works is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Parker-Hannifin beats Illinois Tool Works on 12 of the 21 factors compared between the two stocks.