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EMR vs. ITW: Emerson Electric vs. Illinois Tool Works Stock Comparison

How do Emerson Electric (EMR) 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

Emerson Electric (EMR) and Illinois Tool Works (ITW) both fall under the Capital Goods industry group, but EMR is classified in Electrical Equipment while ITW is classified in Machinery.

Company profile comparison for Emerson Electric (EMR) and Illinois Tool Works (ITW)
Profile ItemEMRITW
NameEmerson Electric Co.Illinois Tool Works Inc.
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryElectrical EquipmentMachinery
GICS Sub-IndustryElectrical Components & EquipmentIndustrial Machinery & Supplies & Components
Market Capitalization90.56 billion USD79.85 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJune 1, 1972March 13, 1973
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

EMR
ITW
GSPC
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Emerson Electric (EMR) 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 Emerson Electric (EMR) and Illinois Tool Works (ITW). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Emerson Electric (EMR) 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 Emerson Electric (EMR) and Illinois Tool Works (ITW)
MetricEMRITW
Total Return (1Y)34.39%20.29%
Total Return (3Y, Annualized)28.46%10.62%
Total Return (5Y, Annualized)14.17%6.67%

Risk Profile

Drawdown History

EMR
ITW
GSPC
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Emerson Electric (EMR) 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 Emerson Electric (EMR) 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 Emerson Electric (EMR) and Illinois Tool Works (ITW)
MetricEMRITW
Volatility (1Y, Annualized)32.47%22.16%
Beta (5Y)1.200.91
Max Drawdown (5Y)-29.61%-28.05%
Avg. Volume (3M)2.61M1.27M

Risk-Adjusted Performance

Risk-Return Positioning

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EMR 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 Emerson Electric (EMR) and Illinois Tool Works (ITW)
MetricEMRITW
Sharpe Ratio (1Y)0.930.72
Sortino Ratio (1Y)1.371.12

Profitability

ROE (TTM)

Illinois Tool Works (ITW) at 101.65% clears its industry range for ROE, a sharper capital-efficiency signal than Emerson Electric (EMR) at 13.12%, which is closer to a typical peer reading.

EMR

Capital Goods industry group

13.12%

Max
40.55%
Q3
19.29%
EMR
13.12%
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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Emerson Electric (EMR) 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 Emerson Electric (EMR) at 14.18% 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.

EMR

Capital Goods industry group

14.18%

Max
27.47%
EMR
14.18%
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%
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Emerson Electric (EMR) vs. Illinois Tool Works (ITW): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Both Emerson Electric (EMR) at 25.90% 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.

EMR

Capital Goods industry group

25.90%

Max
36.60%
EMR
25.90%
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%
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Emerson Electric (EMR) vs. Illinois Tool Works (ITW): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Emerson Electric (EMR) and Illinois Tool Works (ITW)
MetricEMRITW
ROE (TTM)13.12%101.65%
ROA (TTM)5.98%17.13%
Net Margin (TTM)14.18%19.39%
Operating Margin (TTM)25.90%28.05%
Gross Margin (TTM)53.36%44.32%

Growth

Revenue Growth

Only one side can be read here: Illinois Tool Works (ITW) reports revenue growth of 0.92%, ranked against its industry; Emerson Electric (EMR) has no revenue growth figure this period.

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Emerson Electric (EMR) vs. Illinois Tool Works (ITW): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Emerson Electric (EMR) at 18.56% 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.

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Emerson Electric (EMR) vs. Illinois Tool Works (ITW): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Emerson Electric (EMR) and Illinois Tool Works (ITW)
MetricEMRITW
Revenue Growth (YoY)--0.92%
Revenue Growth (3Y CAGR)--0.23%
EPS Growth (YoY)18.56%-10.42%
EPS Growth (3Y CAGR)-40.62%2.40%

Financial Strength

Current Ratio (MRQ)

Both Emerson Electric (EMR) at 0.94 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.

EMR

Capital Goods industry group

0.94

Max
5.22
Q3
2.95
Median
2.08
Q1
1.43
EMR
0.94
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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Emerson Electric (EMR) vs. Illinois Tool Works (ITW): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Emerson Electric (EMR) at 0.59 is near its industry mid-range for debt-to-equity ratio, while Illinois Tool Works (ITW) at 2.98 sits above its benchmark range, pointing to a heavier debt load relative to equity.

EMR

Capital Goods industry group

0.59

Max
2.33
Q3
1.12
Median
0.60
EMR
0.59
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
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Emerson Electric (EMR) 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 Emerson Electric (EMR) and Illinois Tool Works (ITW)
MetricEMRITW
Current Ratio (MRQ)0.941.29
Debt / Equity (MRQ)0.592.98
Net Debt / EBITDA1.891.76

Dividends

Dividend Yield (TTM)

Emerson Electric (EMR) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Illinois Tool Works (ITW) reports a yield of 2.29%, ranking against industry peers normally.

EMR

Capital Goods industry group

0.00%

Max
2.66%
Q3
1.14%
Median
0.24%
EMR
0.00%
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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Emerson Electric (EMR) vs. Illinois Tool Works (ITW): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Both Emerson Electric (EMR) at 48.51% and Illinois Tool Works (ITW) at 58.43% pay out an above-typical share of earnings for their industries, leaving thinner cover if profits dip.

EMR

Capital Goods industry group

48.51%

Max
67.39%
EMR
48.51%
Q3
28.02%
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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Emerson Electric (EMR) vs. Illinois Tool Works (ITW): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Emerson Electric (EMR) and Illinois Tool Works (ITW)
MetricEMRITW
Dividend Yield (TTM)0.00%2.29%
Dividend Payout Ratio (TTM)48.51%58.43%

Valuation

P/E Ratio (TTM)

Both Emerson Electric (EMR) at 33.89 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.

EMR

Capital Goods industry group

33.89

Max
59.38
Q3
35.92
EMR
33.89
Median
25.41
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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Emerson Electric (EMR) vs. Illinois Tool Works (ITW): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

Both Emerson Electric (EMR) at 4.77 and Illinois Tool Works (ITW) at 4.80 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.

EMR

Capital Goods industry group

4.77

Max
7.54
EMR
4.77
Q3
3.76
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
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Emerson Electric (EMR) vs. Illinois Tool Works (ITW): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

Emerson Electric (EMR) at 4.38 sits near its industry’s typical P/B ratio, while Illinois Tool Works (ITW) at 25.42 prices above its benchmark range — ITW looks rich relative to book.

EMR

Capital Goods industry group

4.38

Max
9.66
Q3
5.00
EMR
4.38
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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Emerson Electric (EMR) vs. Illinois Tool Works (ITW): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Emerson Electric (EMR) and Illinois Tool Works (ITW)
MetricEMRITW
P/E Ratio (TTM)33.8925.06
P/S Ratio (TTM)4.774.80
P/B Ratio (MRQ)4.3825.42
Free Cash Flow Yield (TTM)3.85%2.89%