ACM vs. ITW: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ACM 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 ACM’s 15.31 billion USD, highlighting its more substantial market valuation.
With betas of 0.97 for ACM and 1.12 for ITW, both stocks show similar sensitivity to overall market movements.
| Symbol | ACM | ITW |
|---|---|---|
| Company Name | Aecom | Illinois Tool Works Inc. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Engineering & Construction | Industrial - Machinery |
| CEO | W. Troy Rudd | Christopher A. O'Herlihy |
| Price | 115.75 USD | 258.5 USD |
| Market Cap | 15.31 billion USD | 75.74 billion USD |
| Beta | 0.97 | 1.12 |
| Exchange | NYSE | NYSE |
| IPO Date | May 10, 2007 | March 13, 1973 |
| ADR | No | No |
Historical Performance
This chart compares the performance of ACM 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
ACM
27.52%
Engineering & Construction Industry
- Max
- 39.77%
- Q3
- 28.08%
- Median
- 13.64%
- Q1
- 7.13%
- Min
- -14.48%
ACM’s Return on Equity of 27.52% is on par with the norm for the Engineering & Construction industry, indicating its profitability relative to shareholder equity is typical for the sector.
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
ACM
6.55%
Engineering & Construction Industry
- Max
- 22.01%
- Q3
- 12.65%
- Median
- 8.09%
- Q1
- 4.79%
- Min
- -2.53%
ACM’s Return on Invested Capital of 6.55% is in line with the norm for the Engineering & Construction industry, reflecting a standard level of efficiency in generating profits from its capital base.
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
ACM
3.85%
Engineering & Construction Industry
- Max
- 11.23%
- Q3
- 6.47%
- Median
- 3.96%
- Q1
- 2.79%
- Min
- -2.45%
ACM’s Net Profit Margin of 3.85% is aligned with the median group of its peers in the Engineering & Construction industry. This indicates its ability to convert revenue into profit is typical for the sector.
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
ACM
5.98%
Engineering & Construction Industry
- Max
- 13.74%
- Q3
- 8.50%
- Median
- 6.20%
- Q1
- 4.58%
- Min
- 0.34%
ACM’s Operating Profit Margin of 5.98% is around the midpoint for the Engineering & Construction industry, indicating that its efficiency in managing core business operations is typical for the sector.
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 | ACM | ITW |
|---|---|---|
| Return on Equity (TTM) | 27.52% | 104.39% |
| Return on Assets (TTM) | 5.24% | 21.78% |
| Return on Invested Capital (TTM) | 6.55% | 25.61% |
| Net Profit Margin (TTM) | 3.85% | 21.37% |
| Operating Profit Margin (TTM) | 5.98% | 25.93% |
| Gross Profit Margin (TTM) | 7.09% | 43.55% |
Financial Strength
Current Ratio
ACM
--
Engineering & Construction Industry
- Max
- 2.02
- Q3
- 1.66
- Median
- 1.38
- Q1
- 1.24
- Min
- 0.94
Current Ratio data for ACM is currently unavailable.
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
ACM
1.32
Engineering & Construction Industry
- Max
- 1.76
- Q3
- 0.91
- Median
- 0.67
- Q1
- 0.28
- Min
- 0.01
ACM’s leverage is in the upper quartile of the Engineering & Construction industry, with a Debt-to-Equity Ratio of 1.32. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
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
ACM
5.28
Engineering & Construction Industry
- Max
- 20.20
- Q3
- 11.91
- Median
- 6.46
- Q1
- 3.18
- Min
- -2.69
ACM’s Interest Coverage Ratio of 5.28 is positioned comfortably within the norm for the Engineering & Construction industry, indicating a standard and healthy capacity to cover its interest payments.
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 | ACM | ITW |
|---|---|---|
| Current Ratio (TTM) | -- | 1.60 |
| Quick Ratio (TTM) | -- | 1.16 |
| Debt-to-Equity Ratio (TTM) | 1.32 | 2.55 |
| Debt-to-Asset Ratio (TTM) | 0.26 | 0.53 |
| Net Debt-to-EBITDA Ratio (TTM) | 1.23 | 1.51 |
| Interest Coverage Ratio (TTM) | 5.28 | 14.60 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for ACM 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
ACM
0.86%
Engineering & Construction Industry
- Max
- 1.31%
- Q3
- 0.40%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 0.86%, ACM offers a more attractive income stream than most of its peers in the Engineering & Construction industry, signaling a strong commitment to shareholder returns.
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
ACM
20.16%
Engineering & Construction Industry
- Max
- 32.30%
- Q3
- 7.09%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
ACM’s Dividend Payout Ratio of 20.16% is in the upper quartile for the Engineering & Construction 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.
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 | ACM | ITW |
|---|---|---|
| Dividend Yield (TTM) | 0.86% | 2.32% |
| Dividend Payout Ratio (TTM) | 20.16% | 50.96% |
Valuation
Price-to-Earnings Ratio
ACM
24.84
Engineering & Construction Industry
- Max
- 95.41
- Q3
- 56.70
- Median
- 32.28
- Q1
- 22.94
- Min
- 4.72
ACM’s P/E Ratio of 24.84 is within the middle range for the Engineering & Construction industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
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
ACM
2.51
Engineering & Construction Industry
- Max
- 4.99
- Q3
- 3.64
- Median
- 2.51
- Q1
- 1.64
- Min
- 0.03
The Forward PEG Ratio is often not a primary valuation metric in the Engineering & Construction industry.
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
ACM
0.95
Engineering & Construction Industry
- Max
- 3.34
- Q3
- 2.05
- Median
- 1.50
- Q1
- 0.83
- Min
- 0.44
ACM’s P/S Ratio of 0.95 aligns with the market consensus for the Engineering & Construction industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
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
ACM
6.71
Engineering & Construction Industry
- Max
- 10.70
- Q3
- 7.33
- Median
- 4.69
- Q1
- 2.53
- Min
- 0.79
ACM’s P/B Ratio of 6.71 is within the conventional range for the Engineering & Construction 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 | ACM | ITW |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 24.84 | 22.53 |
| Forward PEG Ratio (TTM) | 2.51 | 3.97 |
| Price-to-Sales Ratio (P/S, TTM) | 0.95 | 4.80 |
| Price-to-Book Ratio (P/B, TTM) | 6.71 | 23.42 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 18.31 | 26.61 |
| EV-to-EBITDA (TTM) | 14.51 | 16.94 |
| EV-to-Sales (TTM) | 1.04 | 5.27 |