Parker-Hannifin (PH) Competitors

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

Does the media favor PH or ITW?

In the previous week, Parker-Hannifin had 4 more articles in the media than Illinois Tool Works. MarketBeat recorded 27 mentions for Parker-Hannifin and 23 mentions for Illinois Tool Works. Parker-Hannifin's average media sentiment score of 1.54 beat Illinois Tool Works' score of 1.01 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	24 Very Positive mention(s)	1 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Very Positive
Illinois Tool Works	18 Very Positive mention(s)	0 Positive mention(s)	3 Neutral mention(s)	2 Negative mention(s)	0 Very Negative mention(s)	Positive

Does the MarketBeat Community favor PH or ITW?

Parker-Hannifin received 113 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 56.47% 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 611 56.47%	Underperform Votes 471 43.53%

Do insiders and institutionals believe in PH or ITW?

82.4% of Parker-Hannifin shares are held by institutional investors. Comparatively, 79.8% of Illinois Tool Works shares are held by institutional investors. 0.4% of Parker-Hannifin shares are held by insiders. Comparatively, 1.3% of Illinois Tool Works shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

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%

Do analysts recommend PH or ITW?

Parker-Hannifin presently has a consensus target price of $722.94, suggesting a potential upside of 7.78%. Illinois Tool Works has a consensus target price of $270.11, suggesting a potential upside of 5.31%. Given Parker-Hannifin's stronger consensus rating and higher possible upside, 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

Which has stronger valuation & earnings, 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	$19.99B	4.32	$2.84B	$22.14	30.30
Illinois Tool Works	$16.11B	4.70	$2.96B	$11.56	22.19

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. Parker-Hannifin has increased its dividend for 69 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 1.45, 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.

Summary

Parker-Hannifin beats Illinois Tool Works on 14 of the 22 factors compared between the two stocks.