ACHR vs. ITW: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ACHR and ITW, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
ITW’s market capitalization of 75.74 billion USD is significantly greater than ACHR’s 6.45 billion USD, highlighting its more substantial market valuation.
ACHR’s beta of 3.13 points to significantly higher volatility compared to ITW (beta: 1.12), suggesting ACHR has greater potential for both gains and losses relative to market movements.
| Symbol | ACHR | ITW |
|---|---|---|
| Company Name | Archer Aviation Inc. | Illinois Tool Works Inc. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Aerospace & Defense | Industrial - Machinery |
| CEO | Adam D. Goldstein | Christopher A. O'Herlihy |
| Price | 10.17 USD | 258.5 USD |
| Market Cap | 6.45 billion USD | 75.74 billion USD |
| Beta | 3.13 | 1.12 |
| Exchange | NYSE | NYSE |
| IPO Date | December 18, 2020 | March 13, 1973 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ACHR and ITW by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
ACHR
-80.09%
Aerospace & Defense Industry
- Max
- 42.57%
- Q3
- 16.67%
- Median
- 8.39%
- Q1
- -0.77%
- Min
- -23.36%
ACHR has a negative Return on Equity of -80.09%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
ITW
104.39%
Industrial - Machinery Industry
- Max
- 36.51%
- Q3
- 18.65%
- Median
- 12.08%
- Q1
- 4.75%
- Min
- -15.57%
ITW’s Return on Equity of 104.39% is exceptionally high, placing it well beyond the typical range for the Industrial - Machinery industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Return on Invested Capital
ACHR
-44.42%
Aerospace & Defense Industry
- Max
- 23.42%
- Q3
- 8.86%
- Median
- 5.47%
- Q1
- -5.60%
- Min
- -22.46%
ACHR has a negative Return on Invested Capital of -44.42%. This indicates that its operations are failing to generate a profit on the total capital invested, signaling significant inefficiency or value destruction.
ITW
25.61%
Industrial - Machinery Industry
- Max
- 22.35%
- Q3
- 12.64%
- Median
- 9.33%
- Q1
- 5.32%
- Min
- -5.42%
ITW’s Return on Invested Capital of 25.61% is exceptionally high, placing it well beyond the typical range for the Industrial - Machinery industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.
Net Profit Margin
ACHR
--
Aerospace & Defense Industry
- Max
- 22.67%
- Q3
- 8.04%
- Median
- 4.95%
- Q1
- -5.07%
- Min
- -16.58%
Net Profit Margin data for ACHR is currently unavailable.
ITW
21.37%
Industrial - Machinery Industry
- Max
- 28.85%
- Q3
- 15.25%
- Median
- 10.02%
- Q1
- 5.33%
- Min
- -8.75%
A Net Profit Margin of 21.37% places ITW in the upper quartile for the Industrial - Machinery industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
ACHR
--
Aerospace & Defense Industry
- Max
- 22.01%
- Q3
- 11.49%
- Median
- 8.96%
- Q1
- 3.77%
- Min
- -4.96%
Operating Profit Margin data for ACHR is currently unavailable.
ITW
25.93%
Industrial - Machinery Industry
- Max
- 28.19%
- Q3
- 19.04%
- Median
- 14.62%
- Q1
- 8.13%
- Min
- -5.76%
An Operating Profit Margin of 25.93% places ITW in the upper quartile for the Industrial - Machinery industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | ACHR | ITW |
|---|---|---|
| Return on Equity (TTM) | -80.09% | 104.39% |
| Return on Assets (TTM) | -42.29% | 21.78% |
| Return on Invested Capital (TTM) | -44.42% | 25.61% |
| Net Profit Margin (TTM) | -- | 21.37% |
| Operating Profit Margin (TTM) | -- | 25.93% |
| Gross Profit Margin (TTM) | -- | 43.55% |
Financial Strength
Current Ratio
ACHR
15.80
Aerospace & Defense Industry
- Max
- 5.13
- Q3
- 3.36
- Median
- 2.16
- Q1
- 1.20
- Min
- 0.41
ACHR’s Current Ratio of 15.80 is exceptionally high, placing it well outside the typical range for the Aerospace & Defense industry. This indicates a very strong liquidity position, though such a high ratio may also suggest that the company is not using its assets efficiently to generate profits.
ITW
1.60
Industrial - Machinery Industry
- Max
- 4.18
- Q3
- 2.75
- Median
- 2.07
- Q1
- 1.46
- Min
- 0.46
ITW’s Current Ratio of 1.60 aligns with the median group of the Industrial - Machinery industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
ACHR
0.08
Aerospace & Defense Industry
- Max
- 1.20
- Q3
- 0.73
- Median
- 0.51
- Q1
- 0.09
- Min
- 0.00
Falling into the lower quartile for the Aerospace & Defense industry, ACHR’s Debt-to-Equity Ratio of 0.08 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
ITW
2.55
Industrial - Machinery Industry
- Max
- 1.46
- Q3
- 0.73
- Median
- 0.48
- Q1
- 0.17
- Min
- 0.00
With a Debt-to-Equity Ratio of 2.55, ITW operates with exceptionally high leverage compared to the Industrial - Machinery industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio
ACHR
--
Aerospace & Defense Industry
- Max
- 12.62
- Q3
- 7.38
- Median
- 2.95
- Q1
- 1.68
- Min
- -6.68
Interest Coverage Ratio data for ACHR is currently unavailable.
ITW
14.60
Industrial - Machinery Industry
- Max
- 28.91
- Q3
- 14.99
- Median
- 9.11
- Q1
- 3.95
- Min
- -11.30
ITW’s Interest Coverage Ratio of 14.60 is positioned comfortably within the norm for the Industrial - Machinery industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ACHR | ITW |
|---|---|---|
| Current Ratio (TTM) | 15.80 | 1.60 |
| Quick Ratio (TTM) | 15.80 | 1.16 |
| Debt-to-Equity Ratio (TTM) | 0.08 | 2.55 |
| Debt-to-Asset Ratio (TTM) | 0.06 | 0.53 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.89 | 1.51 |
| Interest Coverage Ratio (TTM) | -- | 14.60 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ACHR and ITW. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
ACHR
0.00%
Aerospace & Defense Industry
- Max
- 6.00%
- Q3
- 0.66%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ACHR currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
ITW
2.32%
Industrial - Machinery Industry
- Max
- 4.40%
- Q3
- 1.47%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 2.32%, ITW offers a more attractive income stream than most of its peers in the Industrial - Machinery industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
ACHR
0.00%
Aerospace & Defense Industry
- Max
- 172.02%
- Q3
- 32.47%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ACHR has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
ITW
50.96%
Industrial - Machinery Industry
- Max
- 78.48%
- Q3
- 36.22%
- Median
- 20.24%
- Q1
- 0.00%
- Min
- 0.00%
ITW’s Dividend Payout Ratio of 50.96% is in the upper quartile for the Industrial - Machinery industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | ACHR | ITW |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.32% |
| Dividend Payout Ratio (TTM) | 0.00% | 50.96% |
Valuation
Price-to-Earnings Ratio
ACHR
-7.87
Aerospace & Defense Industry
- Max
- 75.34
- Q3
- 54.40
- Median
- 38.63
- Q1
- 26.10
- Min
- 16.44
ACHR has a negative P/E Ratio of -7.87. This occurs when a company has negative earnings (a net loss), making the ratio unsuitable for valuation analysis.
ITW
22.53
Industrial - Machinery Industry
- Max
- 47.62
- Q3
- 34.41
- Median
- 27.36
- Q1
- 21.62
- Min
- 10.96
ITW’s P/E Ratio of 22.53 is within the middle range for the Industrial - Machinery industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
ACHR
0.21
Aerospace & Defense Industry
- Max
- 10.68
- Q3
- 5.36
- Median
- 2.31
- Q1
- 1.47
- Min
- 0.01
In the lower quartile for the Aerospace & Defense industry, ACHR’s Forward PEG Ratio of 0.21 is a positive indicator. It suggests that the stock may be attractively valued relative to its expected earnings growth.
ITW
3.97
Industrial - Machinery Industry
- Max
- 6.15
- Q3
- 3.53
- Median
- 2.82
- Q1
- 1.71
- Min
- 0.09
The Forward PEG Ratio is often not a primary valuation metric in the Industrial - Machinery industry.
Price-to-Sales Ratio
ACHR
--
Aerospace & Defense Industry
- Max
- 19.34
- Q3
- 9.54
- Median
- 2.71
- Q1
- 1.59
- Min
- 0.35
P/S Ratio data for ACHR is currently unavailable.
ITW
4.80
Industrial - Machinery Industry
- Max
- 8.37
- Q3
- 4.59
- Median
- 3.34
- Q1
- 1.83
- Min
- 0.32
ITW’s P/S Ratio of 4.80 is in the upper echelon for the Industrial - Machinery industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
Price-to-Book Ratio
ACHR
4.00
Aerospace & Defense Industry
- Max
- 16.08
- Q3
- 8.12
- Median
- 4.12
- Q1
- 2.69
- Min
- 0.69
ACHR’s P/B Ratio of 4.00 is within the conventional range for the Aerospace & Defense industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
ITW
23.42
Industrial - Machinery Industry
- Max
- 7.49
- Q3
- 5.01
- Median
- 3.41
- Q1
- 2.45
- Min
- 0.01
At 23.42, ITW’s P/B Ratio is at an extreme premium to the Industrial - Machinery industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | ACHR | ITW |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | -7.87 | 22.53 |
| Forward PEG Ratio (TTM) | 0.21 | 3.97 |
| Price-to-Sales Ratio (P/S, TTM) | -- | 4.80 |
| Price-to-Book Ratio (P/B, TTM) | 4.00 | 23.42 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -14.28 | 26.61 |
| EV-to-EBITDA (TTM) | -10.89 | 16.94 |
| EV-to-Sales (TTM) | -- | 5.27 |