Parker-Hannifin (PH) Competitors

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

Do analysts prefer PH or ITW?

Parker-Hannifin currently has a consensus target price of $718.44, indicating a potential upside of 5.62%. Illinois Tool Works has a consensus target price of $253.42, indicating a potential upside of 1.41%. Given Parker-Hannifin's stronger consensus rating and higher possible upside, equities research analysts clearly 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)	3 Hold rating(s)	13 Buy rating(s)	0 Strong Buy rating(s)	2.81
Illinois Tool Works	3 Sell rating(s)	7 Hold rating(s)	2 Buy rating(s)	1 Strong Buy rating(s)	2.08

Does the MarketBeat Community prefer PH or ITW?

Parker-Hannifin received 124 more outperform votes than Illinois Tool Works when rated by MarketBeat users. Likewise, 63.79% of users gave Parker-Hannifin an outperform vote while only 55.67% of users gave Illinois Tool Works an outperform vote.

Company	Underperform	Outperform
Parker-Hannifin	Outperform Votes 738 63.79%	Underperform Votes 419 36.21%
Illinois Tool Works	Outperform Votes 614 55.67%	Underperform Votes 489 44.33%

Is PH or ITW more profitable?

Illinois Tool Works has a net margin of 21.94% compared to Parker-Hannifin's net margin of 15.87%. Illinois Tool Works' return on equity of 95.39% beat Parker-Hannifin's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Parker-Hannifin	15.87%	27.34%	11.64%
Illinois Tool Works	21.94%	95.39%	19.49%

Do insiders & institutionals believe 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 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 will outperform the market over the long term.

Does the media prefer PH or ITW?

In the previous week, Illinois Tool Works had 2 more articles in the media than Parker-Hannifin. MarketBeat recorded 33 mentions for Illinois Tool Works and 31 mentions for Parker-Hannifin. Parker-Hannifin's average media sentiment score of 1.45 beat Illinois Tool Works' score of 0.92 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	25 Very Positive mention(s)	1 Positive mention(s)	4 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Illinois Tool Works	18 Very Positive mention(s)	3 Positive mention(s)	4 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive

Is PH or ITW a better dividend stock?

Parker-Hannifin pays an annual dividend of $7.20 per share and has a dividend yield of 1.1%. Illinois Tool Works pays an annual dividend of $6.00 per share and has a dividend yield of 2.4%. Parker-Hannifin pays out 27.7% of its earnings in the form of a dividend. Illinois Tool Works pays out 52.8% 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. Parker-Hannifin has increased its dividend for 70 consecutive years and Illinois Tool Works has increased its dividend for 55 consecutive years.

Which has more risk and volatility, PH or ITW?

Parker-Hannifin has a beta of 1.36, suggesting that its stock price is 36% more volatile than the S&P 500. Comparatively, Illinois Tool Works has a beta of 1.12, suggesting that its stock price is 12% more volatile than the S&P 500.

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	$19.79B	4.39	$2.84B	$25.97	26.19
Illinois Tool Works	$15.76B	4.64	$3.49B	$11.37	21.98

Summary

Parker-Hannifin beats Illinois Tool Works on 13 of the 22 factors compared between the two stocks.