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AIT vs. ITW: Applied Industrial vs. Illinois Tool Works Stock Comparison

How do Applied Industrial (AIT) and Illinois Tool Works (ITW) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Applied Industrial (AIT) and Illinois Tool Works (ITW) both fall under the Capital Goods industry group, but AIT is classified in Trading Companies & Distributors while ITW is classified in Machinery.

Company profile comparison for Applied Industrial (AIT) and Illinois Tool Works (ITW)
Profile ItemAITITW
NameApplied Industrial Technologies Inc.Illinois Tool Works Inc.
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryTrading Companies & DistributorsMachinery
GICS Sub-IndustryTrading Companies & DistributorsIndustrial Machinery & Supplies & Components
Market Capitalization10.35 billion USD79.85 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateMarch 17, 1980March 13, 1973
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

AIT
ITW
GSPC
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Applied Industrial (AIT) vs. Illinois Tool Works (ITW), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Applied Industrial (AIT) and Illinois Tool Works (ITW). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Applied Industrial (AIT) and Illinois Tool Works (ITW). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Applied Industrial (AIT) and Illinois Tool Works (ITW)
MetricAITITW
Total Return (1Y)15.62%20.29%
Total Return (3Y, Annualized)24.49%10.62%
Total Return (5Y, Annualized)24.56%6.67%

Risk Profile

Drawdown History

AIT
ITW
GSPC
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Applied Industrial (AIT) vs. Illinois Tool Works (ITW), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Applied Industrial (AIT) and Illinois Tool Works (ITW). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Applied Industrial (AIT) and Illinois Tool Works (ITW)
MetricAITITW
Volatility (1Y, Annualized)28.72%22.16%
Beta (5Y)0.860.91
Max Drawdown (5Y)-26.42%-28.05%
Avg. Volume (3M)295.41K1.27M

Risk-Adjusted Performance

Risk-Return Positioning

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AIT and ITW are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Applied Industrial (AIT) and Illinois Tool Works (ITW)
MetricAITITW
Sharpe Ratio (1Y)0.390.72
Sortino Ratio (1Y)0.531.12

Profitability

ROE (TTM)

Both companies show strong equity returns, but Illinois Tool Works (ITW) at 101.65% is the standout with ROE above its industry range; Applied Industrial (AIT) at 22.51% also sits in the top quartile.

AIT

Capital Goods industry group

22.51%

Max
40.55%
AIT
22.51%
Q3
19.29%
Median
12.12%
Q1
4.08%
Min
-17.12%

ITW

Capital Goods industry group

101.65%

ITW
101.65%
Max
40.55%
Q3
19.29%
Median
12.12%
Q1
4.08%
Min
-17.12%
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Applied Industrial (AIT) vs. Illinois Tool Works (ITW): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

Illinois Tool Works (ITW) at 19.39% retains a top-quartile share of revenue as profit, ahead of Applied Industrial (AIT) at 8.39%, which keeps about the industry-typical share.

AIT

Capital Goods industry group

8.39%

Max
27.47%
Q3
12.10%
AIT
8.39%
Median
6.30%
Q1
1.40%
Min
-12.89%

ITW

Capital Goods industry group

19.39%

Max
27.47%
ITW
19.39%
Q3
12.10%
Median
6.30%
Q1
1.40%
Min
-12.89%
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Applied Industrial (AIT) vs. Illinois Tool Works (ITW): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Illinois Tool Works (ITW) at 28.05% operates in the top operating margin quartile, ahead of Applied Industrial (AIT) at 11.12%, which runs around its industry’s norm.

AIT

Capital Goods industry group

11.12%

Max
36.60%
Q3
18.33%
AIT
11.12%
Median
11.12%
Q1
5.14%
Min
-12.63%

ITW

Capital Goods industry group

28.05%

Max
36.60%
ITW
28.05%
Q3
18.33%
Median
11.12%
Q1
5.14%
Min
-12.63%
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Applied Industrial (AIT) vs. Illinois Tool Works (ITW): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Applied Industrial (AIT) and Illinois Tool Works (ITW)
MetricAITITW
ROE (TTM)22.51%101.65%
ROA (TTM)11.43%17.13%
Net Margin (TTM)8.39%19.39%
Operating Margin (TTM)11.12%28.05%
Gross Margin (TTM)30.40%44.32%

Growth

Revenue Growth

Applied Industrial (AIT) at 8.84% is around its peer norm for revenue growth, while Illinois Tool Works (ITW) at 0.92% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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Applied Industrial (AIT) vs. Illinois Tool Works (ITW): A comparison of their Revenue Growth across different time periods.

EPS Growth

Only one side can be read here: Illinois Tool Works (ITW) reports EPS growth of -10.42%, ranked against its industry; Applied Industrial (AIT) has no EPS growth figure this period.

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Applied Industrial (AIT) vs. Illinois Tool Works (ITW): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Applied Industrial (AIT) and Illinois Tool Works (ITW)
MetricAITITW
Revenue Growth (YoY)8.84%0.92%
Revenue Growth (3Y CAGR)4.02%0.23%
EPS Growth (YoY)---10.42%
EPS Growth (3Y CAGR)7.40%2.40%

Financial Strength

Current Ratio (MRQ)

Applied Industrial (AIT) at 2.89 keeps current ratio within its industry’s typical mid-range, while Illinois Tool Works (ITW) at 1.29 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for ITW.

AIT

Capital Goods industry group

2.89

Max
5.22
Q3
2.95
AIT
2.89
Median
2.08
Q1
1.43
Min
0.36

ITW

Capital Goods industry group

1.29

Max
5.22
Q3
2.95
Median
2.08
Q1
1.43
ITW
1.29
Min
0.36
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Applied Industrial (AIT) vs. Illinois Tool Works (ITW): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Applied Industrial (AIT) at 0.15 keeps leverage in the lower quartile, while Illinois Tool Works (ITW) at 2.98 is above its industry debt-to-equity ratio range.

AIT

Capital Goods industry group

0.15

Max
2.33
Q3
1.12
Median
0.60
Q1
0.29
AIT
0.15
Min
0.00

ITW

Capital Goods industry group

2.98

ITW
2.98
Max
2.33
Q3
1.12
Median
0.60
Q1
0.29
Min
0.00
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Applied Industrial (AIT) vs. Illinois Tool Works (ITW): A comparison of their debt-to-equity ratio against the Capital Goods industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Applied Industrial (AIT) and Illinois Tool Works (ITW)
MetricAITITW
Current Ratio (MRQ)2.891.29
Debt / Equity (MRQ)0.152.98
Net Debt / EBITDA0.271.76

Dividends

Dividend Yield (TTM)

Illinois Tool Works (ITW) at 2.29% delivers top-quartile income for its industry, while Applied Industrial (AIT) at 0.71% pays a more typical yield — both are credible income propositions, ITW the richer one.

AIT

Capital Goods industry group

0.71%

Max
2.66%
Q3
1.14%
AIT
0.71%
Median
0.24%
Q1
0.00%
Min
0.00%

ITW

Capital Goods industry group

2.29%

Max
2.66%
ITW
2.29%
Q3
1.14%
Median
0.24%
Q1
0.00%
Min
0.00%
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Applied Industrial (AIT) vs. Illinois Tool Works (ITW): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Applied Industrial (AIT) at 17.63% pays out a band-typical share of earnings, while Illinois Tool Works (ITW) at 58.43% distributes more than its industry norm — less retained, thinner cover.

AIT

Capital Goods industry group

17.63%

Max
67.39%
Q3
28.02%
AIT
17.63%
Median
6.86%
Q1
0.00%
Min
0.00%

ITW

Capital Goods industry group

58.43%

Max
67.39%
ITW
58.43%
Q3
28.02%
Median
6.86%
Q1
0.00%
Min
0.00%
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Applied Industrial (AIT) vs. Illinois Tool Works (ITW): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Applied Industrial (AIT) and Illinois Tool Works (ITW)
MetricAITITW
Dividend Yield (TTM)0.71%2.29%
Dividend Payout Ratio (TTM)17.63%58.43%

Valuation

P/E Ratio (TTM)

Both Applied Industrial (AIT) at 25.10 and Illinois Tool Works (ITW) at 25.06 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

AIT

Capital Goods industry group

25.10

Max
59.38
Q3
35.92
Median
25.41
AIT
25.10
Q1
19.47
Min
3.03

ITW

Capital Goods industry group

25.06

Max
59.38
Q3
35.92
Median
25.41
ITW
25.06
Q1
19.47
Min
3.03
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Applied Industrial (AIT) vs. Illinois Tool Works (ITW): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

Applied Industrial (AIT) at 2.05 is priced about in line with its industry on P/S ratio, while Illinois Tool Works (ITW) at 4.80 sits in the pricier quartile — ITW costs more per dollar of sales.

AIT

Capital Goods industry group

2.05

Max
7.54
Q3
3.76
Median
2.15
AIT
2.05
Q1
1.03
Min
0.03

ITW

Capital Goods industry group

4.80

Max
7.54
ITW
4.80
Q3
3.76
Median
2.15
Q1
1.03
Min
0.03
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Applied Industrial (AIT) vs. Illinois Tool Works (ITW): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

Both look rich against book: Applied Industrial (AIT) at 5.50 sits in the upper P/B ratio quartile, and Illinois Tool Works (ITW) at 25.42 prices even higher, above its industry range.

AIT

Capital Goods industry group

5.50

Max
9.66
AIT
5.50
Q3
5.00
Median
3.12
Q1
1.81
Min
-1.08

ITW

Capital Goods industry group

25.42

ITW
25.42
Max
9.66
Q3
5.00
Median
3.12
Q1
1.81
Min
-1.08
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Applied Industrial (AIT) vs. Illinois Tool Works (ITW): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Applied Industrial (AIT) and Illinois Tool Works (ITW)
MetricAITITW
P/E Ratio (TTM)25.1025.06
P/S Ratio (TTM)2.054.80
P/B Ratio (MRQ)5.5025.42
Free Cash Flow Yield (TTM)3.24%2.89%