AER vs. ITW: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AER and ITW, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | AER | ITW |
|---|---|---|
| Company Name | AerCap Holdings N.V. | Illinois Tool Works Inc. |
| Country | Ireland | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Trading Companies & Distributors | Machinery |
| Market Capitalization | 24.13 billion USD | 70.72 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | November 21, 2006 | March 13, 1973 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of AER 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.
Historical Performance at a Glance
| Symbol | AER | ITW |
|---|---|---|
| 5-Day Price Return | 0.43% | -0.12% |
| 13-Week Price Return | 21.03% | -5.67% |
| 26-Week Price Return | 22.10% | -2.08% |
| 52-Week Price Return | 44.67% | -10.62% |
| Month-to-Date Return | 5.08% | 0.02% |
| Year-to-Date Return | 43.01% | -3.78% |
| 10-Day Avg. Volume | 1.47M | 1.07M |
| 3-Month Avg. Volume | 1.45M | 1.03M |
| 3-Month Volatility | 24.02% | 17.76% |
| Beta | 1.09 | 1.17 |
Profitability
Return on Equity (TTM)
AER
21.51%
Trading Companies & Distributors Industry
- Max
- 32.99%
- Q3
- 19.30%
- Median
- 12.90%
- Q1
- 9.19%
- Min
- -4.19%
In the upper quartile for the Trading Companies & Distributors industry, AER’s Return on Equity of 21.51% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
ITW
93.29%
Machinery Industry
- Max
- 30.85%
- Q3
- 19.99%
- Median
- 12.37%
- Q1
- 8.44%
- Min
- -7.69%
ITW’s Return on Equity of 93.29% is exceptionally high, placing it well beyond the typical range for the Machinery industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Net Profit Margin (TTM)
AER
50.40%
Trading Companies & Distributors Industry
- Max
- 18.35%
- Q3
- 9.73%
- Median
- 6.00%
- Q1
- 3.53%
- Min
- -3.81%
AER’s Net Profit Margin of 50.40% is exceptionally high, placing it well beyond the typical range for the Trading Companies & Distributors industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
ITW
19.05%
Machinery Industry
- Max
- 19.28%
- Q3
- 10.99%
- Median
- 7.89%
- Q1
- 5.16%
- Min
- -1.46%
A Net Profit Margin of 19.05% places ITW in the upper quartile for the Machinery industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin (TTM)
AER
71.72%
Trading Companies & Distributors Industry
- Max
- 25.07%
- Q3
- 13.61%
- Median
- 7.26%
- Q1
- 4.79%
- Min
- -7.51%
AER’s Operating Profit Margin of 71.72% is exceptionally high, placing it well above the typical range for the Trading Companies & Distributors industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
ITW
26.20%
Machinery Industry
- Max
- 27.20%
- Q3
- 15.91%
- Median
- 11.33%
- Q1
- 7.73%
- Min
- 0.23%
An Operating Profit Margin of 26.20% places ITW in the upper quartile for the 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 | AER | ITW |
|---|---|---|
| Return on Equity (TTM) | 21.51% | 93.29% |
| Return on Assets (TTM) | 5.23% | 19.30% |
| Net Profit Margin (TTM) | 50.40% | 19.05% |
| Operating Profit Margin (TTM) | 71.72% | 26.20% |
| Gross Profit Margin (TTM) | 93.59% | 43.93% |
Financial Strength
Current Ratio (MRQ)
AER
1.28
Trading Companies & Distributors Industry
- Max
- 3.62
- Q3
- 2.33
- Median
- 1.57
- Q1
- 1.39
- Min
- 0.27
AER’s Current Ratio of 1.28 falls into the lower quartile for the Trading Companies & Distributors industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
ITW
1.53
Machinery Industry
- Max
- 3.27
- Q3
- 2.16
- Median
- 1.75
- Q1
- 1.32
- Min
- 0.70
ITW’s Current Ratio of 1.53 aligns with the median group of the Machinery industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
AER
2.43
Trading Companies & Distributors Industry
- Max
- 1.93
- Q3
- 1.19
- Median
- 0.78
- Q1
- 0.54
- Min
- 0.00
With a Debt-to-Equity Ratio of 2.43, AER operates with exceptionally high leverage compared to the Trading Companies & Distributors industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
ITW
2.79
Machinery Industry
- Max
- 1.49
- Q3
- 0.75
- Median
- 0.45
- Q1
- 0.23
- Min
- 0.00
With a Debt-to-Equity Ratio of 2.79, ITW operates with exceptionally high leverage compared to the Machinery industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio (TTM)
AER
2.14
Trading Companies & Distributors Industry
- Max
- 15.13
- Q3
- 7.93
- Median
- 5.62
- Q1
- 1.79
- Min
- -1.67
AER’s Interest Coverage Ratio of 2.14 is positioned comfortably within the norm for the Trading Companies & Distributors industry, indicating a standard and healthy capacity to cover its interest payments.
ITW
20.06
Machinery Industry
- Max
- 67.55
- Q3
- 36.46
- Median
- 13.55
- Q1
- 7.73
- Min
- -1.43
ITW’s Interest Coverage Ratio of 20.06 is positioned comfortably within the norm for the Machinery industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | AER | ITW |
|---|---|---|
| Current Ratio (MRQ) | 1.28 | 1.53 |
| Quick Ratio (MRQ) | 0.45 | 1.01 |
| Debt-to-Equity Ratio (MRQ) | 2.43 | 2.79 |
| Interest Coverage Ratio (TTM) | 2.14 | 20.06 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
AER
0.79%
Trading Companies & Distributors Industry
- Max
- 5.11%
- Q3
- 2.73%
- Median
- 2.07%
- Q1
- 1.04%
- Min
- 0.00%
AER’s Dividend Yield of 0.79% is in the lower quartile for the Trading Companies & Distributors industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.
ITW
2.49%
Machinery Industry
- Max
- 4.98%
- Q3
- 2.83%
- Median
- 1.89%
- Q1
- 1.17%
- Min
- 0.00%
ITW’s Dividend Yield of 2.49% is consistent with its peers in the Machinery industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
AER
5.07%
Trading Companies & Distributors Industry
- Max
- 136.12%
- Q3
- 68.26%
- Median
- 48.45%
- Q1
- 22.66%
- Min
- 0.00%
AER’s Dividend Payout Ratio of 5.07% is in the lower quartile for the Trading Companies & Distributors industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.
ITW
58.20%
Machinery Industry
- Max
- 209.29%
- Q3
- 102.41%
- Median
- 62.34%
- Q1
- 29.36%
- Min
- 0.00%
ITW’s Dividend Payout Ratio of 58.20% is within the typical range for the Machinery industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AER | ITW |
|---|---|---|
| Dividend Yield (TTM) | 0.79% | 2.49% |
| Dividend Payout Ratio (TTM) | 5.07% | 58.20% |
Valuation
Price-to-Earnings Ratio (TTM)
AER
6.38
Trading Companies & Distributors Industry
- Max
- 37.92
- Q3
- 24.64
- Median
- 17.42
- Q1
- 14.27
- Min
- 5.07
In the lower quartile for the Trading Companies & Distributors industry, AER’s P/E Ratio of 6.38 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
ITW
23.37
Machinery Industry
- Max
- 46.28
- Q3
- 29.52
- Median
- 24.18
- Q1
- 16.92
- Min
- 7.99
ITW’s P/E Ratio of 23.37 is within the middle range for the 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.
Price-to-Sales Ratio (TTM)
AER
3.21
Trading Companies & Distributors Industry
- Max
- 4.94
- Q3
- 2.49
- Median
- 1.08
- Q1
- 0.75
- Min
- 0.30
AER’s P/S Ratio of 3.21 is in the upper echelon for the Trading Companies & Distributors 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.
ITW
4.45
Machinery Industry
- Max
- 5.25
- Q3
- 2.82
- Median
- 1.74
- Q1
- 0.99
- Min
- 0.27
ITW’s P/S Ratio of 4.45 is in the upper echelon for the 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 (MRQ)
AER
1.16
Trading Companies & Distributors Industry
- Max
- 9.42
- Q3
- 4.66
- Median
- 2.10
- Q1
- 1.34
- Min
- 0.31
AER’s P/B Ratio of 1.16 is in the lower quartile for the Trading Companies & Distributors industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.
ITW
23.69
Machinery Industry
- Max
- 7.18
- Q3
- 4.18
- Median
- 2.71
- Q1
- 1.54
- Min
- 0.52
At 23.69, ITW’s P/B Ratio is at an extreme premium to the 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 | AER | ITW |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 6.38 | 23.37 |
| Price-to-Sales Ratio (TTM) | 3.21 | 4.45 |
| Price-to-Book Ratio (MRQ) | 1.16 | 23.69 |
| Price-to-Free Cash Flow Ratio (TTM) | 17.95 | 24.86 |