AVAV vs. ITW: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AVAV 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 AVAV’s 11.24 billion USD, highlighting its more substantial market valuation.
With betas of 0.81 for AVAV and 1.12 for ITW, both stocks show similar sensitivity to overall market movements.
| Symbol | AVAV | ITW |
|---|---|---|
| Company Name | AeroVironment, Inc. | Illinois Tool Works Inc. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Aerospace & Defense | Industrial - Machinery |
| CEO | Wahid Nawabi | Christopher A. O'Herlihy |
| Price | 246.23 USD | 258.5 USD |
| Market Cap | 11.24 billion USD | 75.74 billion USD |
| Beta | 0.81 | 1.12 |
| Exchange | NASDAQ | NYSE |
| IPO Date | January 23, 2007 | March 13, 1973 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AVAV 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
AVAV
5.06%
Aerospace & Defense Industry
- Max
- 42.57%
- Q3
- 16.67%
- Median
- 8.39%
- Q1
- -0.77%
- Min
- -23.36%
AVAV’s Return on Equity of 5.06% is on par with the norm for the Aerospace & Defense 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
AVAV
4.16%
Aerospace & Defense Industry
- Max
- 23.42%
- Q3
- 8.86%
- Median
- 5.47%
- Q1
- -5.60%
- Min
- -22.46%
AVAV’s Return on Invested Capital of 4.16% is in line with the norm for the Aerospace & Defense 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
AVAV
5.54%
Aerospace & Defense Industry
- Max
- 22.67%
- Q3
- 8.04%
- Median
- 4.95%
- Q1
- -5.07%
- Min
- -16.58%
AVAV’s Net Profit Margin of 5.54% is aligned with the median group of its peers in the Aerospace & Defense 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
AVAV
5.18%
Aerospace & Defense Industry
- Max
- 22.01%
- Q3
- 11.49%
- Median
- 8.96%
- Q1
- 3.77%
- Min
- -4.96%
AVAV’s Operating Profit Margin of 5.18% is around the midpoint for the Aerospace & Defense 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 | AVAV | ITW |
|---|---|---|
| Return on Equity (TTM) | 5.06% | 104.39% |
| Return on Assets (TTM) | 3.89% | 21.78% |
| Return on Invested Capital (TTM) | 4.16% | 25.61% |
| Net Profit Margin (TTM) | 5.54% | 21.37% |
| Operating Profit Margin (TTM) | 5.18% | 25.93% |
| Gross Profit Margin (TTM) | 40.23% | 43.55% |
Financial Strength
Current Ratio
AVAV
3.52
Aerospace & Defense Industry
- Max
- 5.13
- Q3
- 3.36
- Median
- 2.16
- Q1
- 1.20
- Min
- 0.41
AVAV’s Current Ratio of 3.52 is in the upper quartile for the Aerospace & Defense industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
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
AVAV
0.04
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, AVAV’s Debt-to-Equity Ratio of 0.04 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
AVAV
245.75
Aerospace & Defense Industry
- Max
- 12.62
- Q3
- 7.38
- Median
- 2.95
- Q1
- 1.68
- Min
- -6.68
With an Interest Coverage Ratio of 245.75, AVAV demonstrates a superior capacity to service its debt, placing it well above the typical range for the Aerospace & Defense industry. This stems from either robust earnings or a conservative debt load.
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 | AVAV | ITW |
|---|---|---|
| Current Ratio (TTM) | 3.52 | 1.60 |
| Quick Ratio (TTM) | 2.69 | 1.16 |
| Debt-to-Equity Ratio (TTM) | 0.04 | 2.55 |
| Debt-to-Asset Ratio (TTM) | 0.03 | 0.53 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.11 | 1.51 |
| Interest Coverage Ratio (TTM) | 245.75 | 14.60 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AVAV 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
AVAV
0.00%
Aerospace & Defense Industry
- Max
- 6.00%
- Q3
- 0.66%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AVAV 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
AVAV
0.00%
Aerospace & Defense Industry
- Max
- 172.02%
- Q3
- 32.47%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AVAV 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 | AVAV | ITW |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 2.32% |
| Dividend Payout Ratio (TTM) | 0.00% | 50.96% |
Valuation
Price-to-Earnings Ratio
AVAV
158.45
Aerospace & Defense Industry
- Max
- 75.34
- Q3
- 54.40
- Median
- 38.63
- Q1
- 26.10
- Min
- 16.44
At 158.45, AVAV’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Aerospace & Defense industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
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
AVAV
4.65
Aerospace & Defense Industry
- Max
- 10.68
- Q3
- 5.36
- Median
- 2.31
- Q1
- 1.47
- Min
- 0.01
AVAV’s Forward PEG Ratio of 4.65 is within the middle range of its peers in the Aerospace & Defense industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
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
AVAV
14.27
Aerospace & Defense Industry
- Max
- 19.34
- Q3
- 9.54
- Median
- 2.71
- Q1
- 1.59
- Min
- 0.35
AVAV’s P/S Ratio of 14.27 is in the upper echelon for the Aerospace & Defense 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
4.80
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
AVAV
7.80
Aerospace & Defense Industry
- Max
- 16.08
- Q3
- 8.12
- Median
- 4.12
- Q1
- 2.69
- Min
- 0.69
AVAV’s P/B Ratio of 7.80 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 | AVAV | ITW |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 158.45 | 22.53 |
| Forward PEG Ratio (TTM) | 4.65 | 3.97 |
| Price-to-Sales Ratio (P/S, TTM) | 14.27 | 4.80 |
| Price-to-Book Ratio (P/B, TTM) | 7.80 | 23.42 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -821.15 | 26.61 |
| EV-to-EBITDA (TTM) | 188.22 | 16.94 |
| EV-to-Sales (TTM) | 14.26 | 5.27 |