Illinois Tool Works Inc. (ITW) vs Rockwell Automation, Inc. (ROK)

Illinois Tool Works Inc. and Rockwell Automation, Inc. are both Specialty Industrial Machinery companies. Illinois Tool Works Inc. is the larger, with a market value of $77.5B against $48.1B — 1.6× the size. Illinois Tool Works Inc. trades at the lower P/E: 24.8× against 40.7×. Rockwell Automation, Inc. grew revenue faster over the last twelve months: 11.3% against 4.30%. Illinois Tool Works Inc. has the higher net margin (19.4% vs 13.4%) and the higher return on invested capital (23.2% vs 14.7%). Both pay a dividend; Illinois Tool Works Inc. yields more (2.18% vs 1.82%). Across the 23 metrics below, Illinois Tool Works Inc. leads on 16 and Rockwell Automation, Inc. on 7.

Valuation

Metric ITW ROK Specialty Industrial Machinery median
P/E 24.80 40.69 29.62
P/S 4.77 5.38 2.77
P/B 27.14 13.80 3.04
Price to free cash flow 26.82 32.07 23.81
EV/EBITDA 18.35 25.18 16.05
EV/Sales 5.31 5.61 2.94
Earnings yield 4.03% 2.46% 3.08%
Free cash flow yield 3.73% 3.12% 3.12%

Profitability

Metric ITW ROK Specialty Industrial Machinery median
Gross margin 44.16% 49.09% 35.90%
Operating margin 26.50% 16.19% 11.22%
Net margin 19.39% 13.36% 7.80%
Free cash flow margin 17.78% 16.76% 9.51%
Return on equity 104.62% 33.66% 11.10%
Return on assets 19.63% 10.76% 4.63%
Return on invested capital 23.21% 14.71% 5.37%

Growth

Metric ITW ROK Specialty Industrial Machinery median
Revenue growth (TTM) 4.30% 11.31% 6.45%
EPS growth (last fiscal year) (10.42%) (7.37%) —
Revenue growth, 5-year CAGR 4.99% 5.68% 8.31%
Net income growth, 5-year CAGR 7.77% (3.26%) 5.04%

Health

Metric ITW ROK Specialty Industrial Machinery median
Debt to equity 3.35 0.74 0.35
Current ratio 1.11 1.08 2.11
Net debt to EBITDA 1.76 1.32 1.32

Dividend

Metric ITW ROK Specialty Industrial Machinery median
Dividend yield 2.18% 1.82% 1.12%
Payout ratio 0.52 0.38 0.17

Size

Metric ITW ROK Specialty Industrial Machinery median
Market cap 77.47b 48.14b 1.97b

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