Illinois Tool Works (ITW) Competitors

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

Which has more volatility & risk, ITW or PH?

Illinois Tool Works has a beta of 1.12, indicating that its stock price is 12% more volatile than the S&P 500. Comparatively, Parker-Hannifin has a beta of 1.39, indicating that its stock price is 39% more volatile than the S&P 500.

Is ITW or PH 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
Illinois Tool Works	21.94%	95.39%	19.49%
Parker-Hannifin	15.87%	27.34%	11.64%

Does the MarketBeat Community favor ITW or PH?

Parker-Hannifin received 123 more outperform votes than Illinois Tool Works when rated by MarketBeat users. Likewise, 63.89% of users gave Parker-Hannifin an outperform vote while only 55.88% of users gave Illinois Tool Works an outperform vote.

Company	Underperform	Outperform
Illinois Tool Works	Outperform Votes 613 55.88%	Underperform Votes 484 44.12%
Parker-Hannifin	Outperform Votes 736 63.89%	Underperform Votes 416 36.11%

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

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

Do analysts prefer ITW or PH?

Illinois Tool Works presently has a consensus price target of $260.09, suggesting a potential upside of 9.81%. Parker-Hannifin has a consensus price target of $705.35, suggesting a potential upside of 21.40%. Given Parker-Hannifin's stronger consensus rating and higher possible upside, analysts clearly believe Parker-Hannifin is more favorable than Illinois Tool Works.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Illinois Tool Works	2 Sell rating(s)	7 Hold rating(s)	2 Buy rating(s)	1 Strong Buy rating(s)	2.17
Parker-Hannifin	0 Sell rating(s)	3 Hold rating(s)	14 Buy rating(s)	0 Strong Buy rating(s)	2.82

Is ITW or PH a better dividend stock?

Illinois Tool Works pays an annual dividend of $6.00 per share and has a dividend yield of 2.5%. Parker-Hannifin pays an annual dividend of $6.52 per share and has a dividend yield of 1.1%. Illinois Tool Works pays out 51.2% of its earnings in the form of a dividend. Parker-Hannifin pays out 27.0% 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 55 consecutive years and Parker-Hannifin has increased its dividend for 69 consecutive years.

Which has preferable earnings and valuation, ITW or PH?

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.

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Illinois Tool Works	$15.90B	4.37	$3.49B	$11.72	20.21
Parker-Hannifin	$19.91B	3.76	$2.84B	$24.16	24.05

Does the media refer more to ITW or PH?

In the previous week, Parker-Hannifin had 4 more articles in the media than Illinois Tool Works. MarketBeat recorded 31 mentions for Parker-Hannifin and 27 mentions for Illinois Tool Works. Illinois Tool Works' average media sentiment score of 1.44 beat Parker-Hannifin's score of 1.37 indicating that Illinois Tool Works is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Illinois Tool Works	24 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive
Parker-Hannifin	25 Very Positive mention(s)	0 Positive mention(s)	5 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive

Summary

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