CAT vs. ITW: Caterpillar vs. Illinois Tool Works Stock Comparison

June 28, 2026

How do Caterpillar (CAT) 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

Caterpillar (CAT) and Illinois Tool Works (ITW) both belong to the Machinery industry, though CAT is classified under Construction Machinery & Heavy Transportation Equipment while ITW falls under Industrial Machinery & Supplies & Components.

Company profile comparison for Caterpillar (CAT) and Illinois Tool Works (ITW)
Profile Item	CAT	ITW
Name	Caterpillar Inc.	Illinois Tool Works Inc.
Country/Region	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry Group	Capital Goods	Capital Goods
GICS Industry	Machinery	Machinery
GICS Sub-Industry	Construction Machinery & Heavy Transportation Equipment	Industrial Machinery & Supplies & Components
Market Capitalization	459.43 billion USD	77.02 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	January 2, 1962	March 13, 1973
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

CAT

ITW

Caterpillar (CAT) vs. Illinois Tool Works (ITW): Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

Loading price history…

Trailing total returns for Caterpillar (CAT) and Illinois Tool Works (ITW). Returns over one year are annualized.

Performance Metrics

Price performance metrics for Caterpillar (CAT) and Illinois Tool Works (ITW)
Metric	CAT	ITW
Total Return (1Y)	164.03%	11.24%

Risk Profile

Drawdown History

CAT

ITW

Caterpillar (CAT) vs. Illinois Tool Works (ITW): Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Risk Metrics

Risk profile metrics for Caterpillar (CAT) and Illinois Tool Works (ITW)
Metric	CAT	ITW
Volatility (1Y, Annualized)	36.60%	20.78%
Beta (5Y)	1.56	0.98
Avg. Volume (3M)	2.87M	1.37M

Risk-Adjusted Performance

Risk-Return Positioning

CAT 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.

Profitability

ROE (TTM)

Both Caterpillar (CAT) at 51.33% and Illinois Tool Works (ITW) at 96.85% turn shareholders’ equity into profit at rates above their industry benchmark ranges for ROE. That is a strong capital-efficiency signal, though leverage and the equity base still matter.

CAT

Capital Goods industry group

51.33%

CAT: 51.33%
Max: 45.43%
Q3: 20.07%
Median: 11.35%
Q1: 3.04%
Min: -19.79%

ITW

Capital Goods industry group

96.85%

ITW: 96.85%
Max: 45.43%
Q3: 20.07%
Median: 11.35%
Q1: 3.04%
Min: -19.79%

Caterpillar (CAT) vs. Illinois Tool Works (ITW): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

For every dollar of sales, both Caterpillar (CAT) at 13.33% and Illinois Tool Works (ITW) at 19.32% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

CAT

Capital Goods industry group

13.33%

Max: 24.69%
CAT: 13.33%
Q3: 11.56%
Median: 5.93%
Q1: 0.85%
Min: -13.94%

ITW

Capital Goods industry group

19.32%

Max: 24.69%
ITW: 19.32%
Q3: 11.56%
Median: 5.93%
Q1: 0.85%
Min: -13.94%

Caterpillar (CAT) vs. Illinois Tool Works (ITW): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Both Caterpillar (CAT) at 18.18% and Illinois Tool Works (ITW) at 25.67% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

CAT

Capital Goods industry group

18.18%

Max: 29.84%
CAT: 18.18%
Q3: 15.92%
Median: 8.27%
Q1: 1.86%
Min: -17.50%

ITW

Capital Goods industry group

25.67%

Max: 29.84%
ITW: 25.67%
Q3: 15.92%
Median: 8.27%
Q1: 1.86%
Min: -17.50%

Caterpillar (CAT) vs. Illinois Tool Works (ITW): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Caterpillar (CAT) and Illinois Tool Works (ITW)
Metric	CAT	ITW
ROE (TTM)	51.33%	96.85%
ROA (TTM)	8.52%	17.05%
Net Margin (TTM)	13.33%	19.32%
Operating Margin (TTM)	18.18%	25.67%
Gross Margin (TTM)	28.60%	44.12%

Growth

Revenue Growth

Caterpillar (CAT) vs. Illinois Tool Works (ITW): A comparison of their Revenue Growth across different time periods.

Revenue Growth Metrics

Revenue growth metrics for Caterpillar (CAT) and Illinois Tool Works (ITW)
Metric	CAT	ITW
Revenue Growth (YoY)	4.29%	0.92%
Revenue Growth (3Y CAGR)	4.38%	0.23%

EPS Growth

Caterpillar (CAT) vs. Illinois Tool Works (ITW): A comparison of their EPS Growth across different time periods.

EPS Growth Metrics

EPS growth metrics for Caterpillar (CAT) and Illinois Tool Works (ITW)
Metric	CAT	ITW
EPS Growth (YoY)	-14.69%	-10.42%
EPS Growth (3Y CAGR)	14.17%	2.40%

Financial Strength

Current Ratio (MRQ)

Both Caterpillar (CAT) at 1.35 and Illinois Tool Works (ITW) at 1.19 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

CAT

Capital Goods industry group

1.35

Max: 5.24
Q3: 2.97
Median: 2.11
Q1: 1.45
CAT: 1.35
Min: 0.71

ITW

Capital Goods industry group

1.19

Max: 5.24
Q3: 2.97
Median: 2.11
Q1: 1.45
ITW: 1.19
Min: 0.71

Caterpillar (CAT) vs. Illinois Tool Works (ITW): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Debt sits unusually high against shareholders’ equity for both Caterpillar (CAT) at 2.31 and Illinois Tool Works (ITW) at 2.83 — each debt-to-equity ratio is above its industry benchmark range.

CAT

Capital Goods industry group

2.31

CAT: 2.31
Max: 2.29
Q3: 1.08
Median: 0.62
Q1: 0.28
Min: 0.00

ITW

Capital Goods industry group

2.83

ITW: 2.83
Max: 2.29
Q3: 1.08
Median: 0.62
Q1: 0.28
Min: 0.00

Caterpillar (CAT) 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 Caterpillar (CAT) and Illinois Tool Works (ITW)
Metric	CAT	ITW
Current Ratio (MRQ)	1.35	1.19
Debt / Equity (MRQ)	2.31	2.83
Net Debt / EBITDA	2.73	1.76

Dividends

Dividend Yield (TTM)

Illinois Tool Works (ITW) at 2.34% delivers top-quartile income for its industry, while Caterpillar (CAT) at 0.57% pays a more typical yield — both are credible income propositions, ITW the richer one.

CAT

Capital Goods industry group

0.57%

Max: 2.34%
Q3: 1.00%
CAT: 0.57%
Median: 0.15%
Q1: 0.00%
Min: 0.00%

ITW

Capital Goods industry group

2.34%

ITW: 2.34%
Max: 2.34%
Q3: 1.00%
Median: 0.15%
Q1: 0.00%
Min: 0.00%

Caterpillar (CAT) vs. Illinois Tool Works (ITW): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Both Caterpillar (CAT) at 29.58% and Illinois Tool Works (ITW) at 58.77% pay out an above-typical share of earnings for their industries, leaving thinner cover if profits dip.

CAT

Capital Goods industry group

29.58%

Max: 72.02%
CAT: 29.58%
Q3: 29.56%
Median: 6.41%
Q1: 0.00%
Min: 0.00%

ITW

Capital Goods industry group

58.77%

Max: 72.02%
ITW: 58.77%
Q3: 29.56%
Median: 6.41%
Q1: 0.00%
Min: 0.00%

Caterpillar (CAT) vs. Illinois Tool Works (ITW): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Caterpillar (CAT) and Illinois Tool Works (ITW)
Metric	CAT	ITW
Dividend Yield (TTM)	0.57%	2.34%
Dividend Payout Ratio (TTM)	29.58%	58.77%

Valuation

P/E Ratio (TTM)

Both Caterpillar (CAT) at 49.75 and Illinois Tool Works (ITW) at 24.88 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

CAT

Capital Goods industry group

49.75

Max: 89.28
Q3: 51.81
CAT: 49.75
Median: 33.98
Q1: 23.50
Min: 6.12

ITW

Capital Goods industry group

24.88

Max: 89.28
Q3: 51.81
Median: 33.98
ITW: 24.88
Q1: 23.50
Min: 6.12

Caterpillar (CAT) vs. Illinois Tool Works (ITW): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

Illinois Tool Works (ITW) at 4.75 is priced about in line with its industry on P/S ratio, while Caterpillar (CAT) at 6.49 sits in the pricier quartile — CAT costs more per dollar of sales.

CAT

Capital Goods industry group

6.49

Max: 9.89
CAT: 6.49
Q3: 4.89
Median: 2.76
Q1: 1.29
Min: 0.04

ITW

Capital Goods industry group

4.75

Max: 9.89
Q3: 4.89
ITW: 4.75
Median: 2.76
Q1: 1.29
Min: 0.04

Caterpillar (CAT) vs. Illinois Tool Works (ITW): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

Measured against book value, both Caterpillar (CAT) at 24.62 and Illinois Tool Works (ITW) at 23.85 look expensive — each P/B ratio sits above its industry’s benchmark range.

CAT

Capital Goods industry group

24.62

CAT: 24.62
Max: 13.55
Q3: 6.81
Median: 3.86
Q1: 2.14
Min: -2.32

ITW

Capital Goods industry group

23.85

ITW: 23.85
Max: 13.55
Q3: 6.81
Median: 3.86
Q1: 2.14
Min: -2.32

Caterpillar (CAT) vs. Illinois Tool Works (ITW): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Caterpillar (CAT) and Illinois Tool Works (ITW)
Metric	CAT	ITW
P/E Ratio (TTM)	49.75	24.88
P/S Ratio (TTM)	6.49	4.75
P/B Ratio (MRQ)	24.62	23.85
Free Cash Flow Yield (TTM)	0.82%	2.88%