AIT vs. TXT: Applied Industrial vs. Textron Stock Comparison
How do Applied Industrial (AIT) and Textron (TXT) 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 Textron (TXT) both fall under the Capital Goods industry group, but AIT is classified in Trading Companies & Distributors while TXT is classified in Aerospace & Defense.
| Profile Item | AIT | TXT |
|---|---|---|
| Name | Applied Industrial Technologies Inc. | Textron Inc. |
| Country/Region | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry Group | Capital Goods | Capital Goods |
| GICS Industry | Trading Companies & Distributors | Aerospace & Defense |
| GICS Sub-Industry | Trading Companies & Distributors | Aerospace & Defense |
| Market Capitalization | 10.35 billion USD | 14.15 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | March 17, 1980 | February 21, 1973 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | AIT | TXT |
|---|---|---|
| Total Return (1Y) | 15.62% | 3.94% |
| Total Return (3Y, Annualized) | 24.49% | 4.49% |
| Total Return (5Y, Annualized) | 24.56% | 2.30% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | AIT | TXT |
|---|---|---|
| Volatility (1Y, Annualized) | 28.72% | 29.18% |
| Beta (5Y) | 0.86 | 0.87 |
| Max Drawdown (5Y) | -26.42% | -37.33% |
| Avg. Volume (3M) | 295.41K | 1.72M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | AIT | TXT |
|---|---|---|
| Sharpe Ratio (1Y) | 0.39 | -0.01 |
| Sortino Ratio (1Y) | 0.53 | -0.02 |
Profitability
ROE (TTM)
Applied Industrial (AIT) at 22.51% sits in the top ROE quartile, while Textron (TXT) at 12.48% is closer to the peer norm — stronger capital efficiency for AIT.
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%
TXT
Capital Goods industry group
12.48%
- Max
- 40.55%
- Q3
- 19.29%
- TXT
- 12.48%
- Median
- 12.12%
- Q1
- 4.08%
- Min
- -17.12%
Net Margin (TTM)
Both Applied Industrial (AIT) at 8.39% and Textron (TXT) at 6.30% keep about the typical share of revenue as profit for their industries — neither bottom line stands out from peers.
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%
TXT
Capital Goods industry group
6.30%
- Max
- 27.47%
- Q3
- 12.10%
- TXT
- 6.30%
- Median
- 6.30%
- Q1
- 1.40%
- Min
- -12.89%
Operating Margin (TTM)
Both Applied Industrial (AIT) at 11.12% and Textron (TXT) at 9.33% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.
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%
TXT
Capital Goods industry group
9.33%
- Max
- 36.60%
- Q3
- 18.33%
- Median
- 11.12%
- TXT
- 9.33%
- Q1
- 5.14%
- Min
- -12.63%
Profitability Metrics
| Metric | AIT | TXT |
|---|---|---|
| ROE (TTM) | 22.51% | 12.48% |
| ROA (TTM) | 11.43% | 4.51% |
| Net Margin (TTM) | 8.39% | 6.30% |
| Operating Margin (TTM) | 11.12% | 9.33% |
| Gross Margin (TTM) | 30.40% | 17.53% |
Growth
Revenue Growth
Both Applied Industrial (AIT) at 8.84% and Textron (TXT) at 8.01% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Only one side can be read here: Textron (TXT) reports EPS growth of 18.02%, ranked against its industry; Applied Industrial (AIT) has no EPS growth figure this period.
Growth Metrics
| Metric | AIT | TXT |
|---|---|---|
| Revenue Growth (YoY) | 8.84% | 8.01% |
| Revenue Growth (3Y CAGR) | 4.02% | 4.77% |
| EPS Growth (YoY) | -- | 18.02% |
| EPS Growth (3Y CAGR) | 7.40% | 8.42% |
Financial Strength
Current Ratio (MRQ)
Both Applied Industrial (AIT) at 2.89 and Textron (TXT) at 1.80 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.
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
TXT
Capital Goods industry group
1.80
- Max
- 5.22
- Q3
- 2.95
- Median
- 2.08
- TXT
- 1.80
- Q1
- 1.43
- Min
- 0.36
Debt / Equity (MRQ)
Applied Industrial (AIT) at 0.15 keeps leverage in the lower industry quartile, while Textron (TXT) at 0.52 runs a more typical debt-to-equity mix.
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
TXT
Capital Goods industry group
0.52
- Max
- 2.33
- Q3
- 1.12
- Median
- 0.60
- TXT
- 0.52
- Q1
- 0.29
- Min
- 0.00
Financial Strength Metrics
| Metric | AIT | TXT |
|---|---|---|
| Current Ratio (MRQ) | 2.89 | 1.80 |
| Debt / Equity (MRQ) | 0.15 | 0.52 |
| Net Debt / EBITDA | 0.27 | 1.54 |
Dividends
Dividend Yield (TTM)
Both Applied Industrial (AIT) at 0.71% and Textron (TXT) at 0.09% pay solid, industry-typical yields, sitting squarely within their peers’ usual range.
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%
TXT
Capital Goods industry group
0.09%
- Max
- 2.66%
- Q3
- 1.14%
- Median
- 0.24%
- TXT
- 0.09%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Both Applied Industrial (AIT) at 17.63% and Textron (TXT) at 1.44% keep payout ratio within their industries’ typical mid-ranges — dividend policies that share earnings without consuming too much of them.
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%
TXT
Capital Goods industry group
1.44%
- Max
- 67.39%
- Q3
- 28.02%
- Median
- 6.86%
- TXT
- 1.44%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | AIT | TXT |
|---|---|---|
| Dividend Yield (TTM) | 0.71% | 0.09% |
| Dividend Payout Ratio (TTM) | 17.63% | 1.44% |
Valuation
P/E Ratio (TTM)
Textron (TXT) at 15.03 sits in the cheaper P/E ratio quartile, while Applied Industrial (AIT) at 25.10 is closer to its industry’s usual earnings multiple — a discount for TXT, though growth and earnings durability still matter.
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
TXT
Capital Goods industry group
15.03
- Max
- 59.38
- Q3
- 35.92
- Median
- 25.41
- Q1
- 19.47
- TXT
- 15.03
- Min
- 3.03
P/S Ratio (TTM)
Textron (TXT) at 0.92 sits in the cheaper P/S ratio quartile while Applied Industrial (AIT) at 2.05 prices around its industry’s middle — TXT costs less per dollar of sales, though read it alongside growth and margins.
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
TXT
Capital Goods industry group
0.92
- Max
- 7.54
- Q3
- 3.76
- Median
- 2.15
- Q1
- 1.03
- TXT
- 0.92
- Min
- 0.03
P/B Ratio (MRQ)
Textron (TXT) at 1.74 looks cheap against book in the lower P/B ratio quartile, while Applied Industrial (AIT) at 5.50 carries a premium in the upper quartile — a clear price-to-book gap.
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
TXT
Capital Goods industry group
1.74
- Max
- 9.66
- Q3
- 5.00
- Median
- 3.12
- Q1
- 1.81
- TXT
- 1.74
- Min
- -1.08
Valuation Metrics
| Metric | AIT | TXT |
|---|---|---|
| P/E Ratio (TTM) | 25.10 | 15.03 |
| P/S Ratio (TTM) | 2.05 | 0.92 |
| P/B Ratio (MRQ) | 5.50 | 1.74 |
| Free Cash Flow Yield (TTM) | 3.24% | 5.35% |