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

November 11, 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	255.63 billion USD	79.85 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

GSPC

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

Calendar-Year Returns

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Calendar-year total returns for Caterpillar (CAT) 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 Caterpillar (CAT) and Illinois Tool Works (ITW)
Metric	CAT	ITW
Total Return (1Y)	6.75%	20.29%
Total Return (3Y, Annualized)	38.34%	10.62%
Total Return (5Y, Annualized)	25.28%	6.67%

Risk Profile

Drawdown History

CAT

ITW

GSPC

Caterpillar (CAT) 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 Caterpillar (CAT) 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 Caterpillar (CAT) and Illinois Tool Works (ITW)
Metric	CAT	ITW
Volatility (1Y, Annualized)	41.33%	22.16%
Beta (5Y)	1.65	0.91
Max Drawdown (5Y)	-47.79%	-28.05%
Avg. Volume (3M)	2.82M	1.27M

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.

Risk-Adjusted Metrics

Risk-adjusted metrics for Caterpillar (CAT) and Illinois Tool Works (ITW)
Metric	CAT	ITW
Sharpe Ratio (1Y)	0.06	0.72
Sortino Ratio (1Y)	0.08	1.12

Profitability

ROE (TTM)

Both Caterpillar (CAT) at 56.14% and Illinois Tool Works (ITW) at 101.65% 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

56.14%

CAT: 56.14%
Max: 40.55%
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%

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 15.21% and Illinois Tool Works (ITW) at 19.39% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

CAT

Capital Goods industry group

15.21%

Max: 27.47%
CAT: 15.21%
Q3: 12.10%
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%

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 20.19% and Illinois Tool Works (ITW) at 28.05% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

CAT

Capital Goods industry group

20.19%

Max: 36.60%
CAT: 20.19%
Q3: 18.33%
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%

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)	56.14%	101.65%
ROA (TTM)	9.09%	17.13%
Net Margin (TTM)	15.21%	19.39%
Operating Margin (TTM)	20.19%	28.05%
Gross Margin (TTM)	29.54%	44.32%

Growth

Revenue Growth

Caterpillar (CAT) at 4.29% 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.

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

EPS Growth

Both Caterpillar (CAT) at -14.69% and Illinois Tool Works (ITW) at -10.42% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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

Growth Metrics

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 (YoY)	-14.69%	-10.42%
EPS Growth (3Y CAGR)	14.17%	2.40%

Financial Strength

Current Ratio (MRQ)

Both Caterpillar (CAT) at 1.42 and Illinois Tool Works (ITW) at 1.29 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

1.42

Max: 5.22
Q3: 2.95
Median: 2.08
Q1: 1.43
CAT: 1.42
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

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

Debt / Equity (MRQ)

Both balance sheets lean debt-heavy versus peers, but ITW is more stretched: Caterpillar (CAT) at 2.10 sits in the higher-leverage quartile and Illinois Tool Works (ITW) at 2.98 is above its industry benchmark range.

CAT

Capital Goods industry group

2.10

Max: 2.33
CAT: 2.10
Q3: 1.12
Median: 0.60
Q1: 0.29
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

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)	1.42	1.29
Debt / Equity (MRQ)	2.10	2.98
Net Debt / EBITDA	2.25	1.76

Dividends

Dividend Yield (TTM)

Illinois Tool Works (ITW) at 2.29% delivers top-quartile income for its industry, while Caterpillar (CAT) at 1.13% pays a more typical yield — both are credible income propositions, ITW the richer one.

CAT

Capital Goods industry group

1.13%

Max: 2.66%
Q3: 1.14%
CAT: 1.13%
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%

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

Dividend Payout Ratio (TTM)

Caterpillar (CAT) at 24.18% 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.

CAT

Capital Goods industry group

24.18%

Max: 67.39%
Q3: 28.02%
CAT: 24.18%
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%

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)	1.13%	2.29%
Dividend Payout Ratio (TTM)	24.18%	58.43%

Valuation

P/E Ratio (TTM)

Both Caterpillar (CAT) at 21.92 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.

CAT

Capital Goods industry group

21.92

Max: 59.38
Q3: 35.92
Median: 25.41
CAT: 21.92
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

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)

Caterpillar (CAT) at 3.29 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.

CAT

Capital Goods industry group

3.29

Max: 7.54
Q3: 3.76
CAT: 3.29
Median: 2.15
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

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 11.90 and Illinois Tool Works (ITW) at 25.42 look expensive — each P/B ratio sits above its industry’s benchmark range.

CAT

Capital Goods industry group

11.90

CAT: 11.90
Max: 9.66
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

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)	21.92	25.06
P/S Ratio (TTM)	3.29	4.80
P/B Ratio (MRQ)	11.90	25.42
Free Cash Flow Yield (TTM)	1.55%	2.89%