ERJ vs. ITW: A Head-to-Head Stock Comparison

Updated on August 21, 2025

Here’s a clear look at ERJ and ITW, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

ERJ trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, ITW is a standard domestic listing.

Symbol	ERJ	ITW
Company Name	Embraer S.A.	Illinois Tool Works Inc.
Country	Brazil	United States
GICS Sector	Industrials	Industrials
GICS Industry	Aerospace & Defense	Machinery
Market Capitalization	10.77 billion USD	77.92 billion USD
Exchange	NYSE	NYSE
Listing Date	July 21, 2000	March 13, 1973
Security Type	ADR	Common Stock

Historical Performance

This chart compares the performance of ERJ 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.

ERJ vs. ITW: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	ERJ	ITW
5-Day Price Return	1.76%	4.10%
13-Week Price Return	14.32%	6.80%
26-Week Price Return	37.92%	4.79%
52-Week Price Return	88.96%	12.97%
Month-to-Date Return	-1.75%	4.43%
Year-to-Date Return	41.04%	5.43%
10-Day Avg. Volume	8.97M	0.98M
3-Month Avg. Volume	6.03M	1.10M
3-Month Volatility	43.48%	18.39%
Beta	0.17	1.14

Profitability

Return on Equity (TTM)

ERJ

11.78%

Aerospace & Defense Industry

Max: 43.89%
Q3: 22.42%
Median: 12.50%
Q1: 5.21%
Min: -6.24%

ERJ’s Return on Equity of 11.78% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.

ITW

102.30%

Machinery Industry

Max: 34.68%
Q3: 19.06%
Median: 13.13%
Q1: 8.53%
Min: -4.87%

ITW’s Return on Equity of 102.30% is exceptionally high, placing it well beyond the typical range for the Machinery industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

ERJ vs. ITW: A comparison of their Return on Equity (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

Net Profit Margin (TTM)

ERJ

5.37%

Aerospace & Defense Industry

Max: 14.54%
Q3: 8.08%
Median: 6.17%
Q1: 2.49%
Min: -1.63%

ERJ’s Net Profit Margin of 5.37% 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

21.31%

Machinery Industry

Max: 19.74%
Q3: 11.24%
Median: 8.13%
Q1: 5.38%
Min: -1.11%

ITW’s Net Profit Margin of 21.31% is exceptionally high, placing it well beyond the typical range for the Machinery industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

ERJ vs. ITW: A comparison of their Net Profit Margin (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

Operating Profit Margin (TTM)

ERJ

11.14%

Aerospace & Defense Industry

Max: 16.63%
Q3: 10.38%
Median: 8.29%
Q1: 6.21%
Min: 0.95%

An Operating Profit Margin of 11.14% places ERJ in the upper quartile for the Aerospace & Defense industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ITW

25.98%

Machinery Industry

Max: 26.63%
Q3: 16.15%
Median: 11.27%
Q1: 7.72%
Min: -4.91%

An Operating Profit Margin of 25.98% places ITW in the upper quartile for the Machinery industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ERJ vs. ITW: A comparison of their Operating Profit Margin (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

Profitability at a Glance

Symbol	ERJ	ITW
Return on Equity (TTM)	11.78%	102.30%
Return on Assets (TTM)	3.17%	21.57%
Net Profit Margin (TTM)	5.37%	21.31%
Operating Profit Margin (TTM)	11.14%	25.98%
Gross Profit Margin (TTM)	18.48%	43.74%

Financial Strength

Current Ratio (MRQ)

ERJ

1.33

Aerospace & Defense Industry

Max: 3.09
Q3: 1.98
Median: 1.23
Q1: 1.03
Min: 0.02

ERJ’s Current Ratio of 1.33 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.

ITW

1.59

Machinery Industry

Max: 3.83
Q3: 2.32
Median: 1.72
Q1: 1.28
Min: 0.78

ITW’s Current Ratio of 1.59 aligns with the median group of the Machinery industry, indicating that its short-term liquidity is in line with its sector peers.

ERJ vs. ITW: A comparison of their Current Ratio (MRQ) against their respective Aerospace & Defense and Machinery industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ERJ

0.70

Aerospace & Defense Industry

Max: 1.70
Q3: 1.04
Median: 0.68
Q1: 0.41
Min: 0.00

ERJ’s Debt-to-Equity Ratio of 0.70 is typical for the Aerospace & Defense industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ITW

2.78

Machinery Industry

Max: 1.49
Q3: 0.75
Median: 0.44
Q1: 0.26
Min: 0.00

With a Debt-to-Equity Ratio of 2.78, ITW operates with exceptionally high leverage compared to the Machinery industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

ERJ vs. ITW: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Aerospace & Defense and Machinery industry benchmarks.

Interest Coverage Ratio (TTM)

ERJ

36.57

Aerospace & Defense Industry

Max: 36.57
Q3: 19.90
Median: 7.04
Q1: 2.40
Min: -7.63

ERJ’s Interest Coverage Ratio of 36.57 is in the upper quartile for the Aerospace & Defense industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

ITW

20.06

Machinery Industry

Max: 67.55
Q3: 33.79
Median: 13.87
Q1: 7.97
Min: -1.43

ITW’s Interest Coverage Ratio of 20.06 is positioned comfortably within the norm for the Machinery industry, indicating a standard and healthy capacity to cover its interest payments.

ERJ vs. ITW: A comparison of their Interest Coverage Ratio (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

Financial Strength at a Glance

Symbol	ERJ	ITW
Current Ratio (MRQ)	1.33	1.59
Quick Ratio (MRQ)	0.59	1.04
Debt-to-Equity Ratio (MRQ)	0.70	2.78
Interest Coverage Ratio (TTM)	36.57	20.06

Growth

Revenue Growth

ERJ vs. ITW: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ERJ vs. ITW: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ERJ

0.09%

Aerospace & Defense Industry

Max: 2.03%
Q3: 1.22%
Median: 0.43%
Q1: 0.00%
Min: 0.00%

ERJ’s Dividend Yield of 0.09% is consistent with its peers in the Aerospace & Defense industry, providing a dividend return that is standard for its sector.

ITW

2.25%

Machinery Industry

Max: 5.32%
Q3: 2.84%
Median: 1.87%
Q1: 1.09%
Min: 0.00%

ITW’s Dividend Yield of 2.25% is consistent with its peers in the Machinery industry, providing a dividend return that is standard for its sector.

ERJ vs. ITW: A comparison of their Dividend Yield (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

Dividend Payout Ratio (TTM)

ERJ

11.51%

Aerospace & Defense Industry

Max: 83.87%
Q3: 49.90%
Median: 16.48%
Q1: 0.00%
Min: 0.00%

ERJ’s Dividend Payout Ratio of 11.51% is within the typical range for the Aerospace & Defense industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ITW

51.65%

Machinery Industry

Max: 202.17%
Q3: 98.65%
Median: 55.54%
Q1: 29.03%
Min: 0.00%

ITW’s Dividend Payout Ratio of 51.65% is within the typical range for the Machinery industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ERJ vs. ITW: A comparison of their Dividend Payout Ratio (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

Dividend at a Glance

Symbol	ERJ	ITW
Dividend Yield (TTM)	0.09%	2.25%
Dividend Payout Ratio (TTM)	11.51%	51.65%

Valuation

Price-to-Earnings Ratio (TTM)

ERJ

27.23

Aerospace & Defense Industry

Max: 65.97
Q3: 54.11
Median: 34.53
Q1: 23.66
Min: 0.00

ERJ’s P/E Ratio of 27.23 is within the middle range for the Aerospace & Defense industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ITW

23.00

Machinery Industry

Max: 53.66
Q3: 31.29
Median: 22.00
Q1: 16.18
Min: 7.00

ITW’s P/E Ratio of 23.00 is within the middle range for the 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.

ERJ vs. ITW: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

Price-to-Sales Ratio (TTM)

ERJ

1.46

Aerospace & Defense Industry

Max: 8.07
Q3: 4.49
Median: 2.42
Q1: 1.39
Min: 0.00

ERJ’s P/S Ratio of 1.46 aligns with the market consensus for the Aerospace & Defense industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ITW

4.90

Machinery Industry

Max: 5.04
Q3: 2.72
Median: 1.67
Q1: 1.04
Min: 0.24

ITW’s P/S Ratio of 4.90 is in the upper echelon for the 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.

ERJ vs. ITW: A comparison of their Price-to-Sales Ratio (TTM) against their respective Aerospace & Defense and Machinery industry benchmarks.

Price-to-Book Ratio (MRQ)

ERJ

3.13

Aerospace & Defense Industry

Max: 13.67
Q3: 7.92
Median: 4.65
Q1: 2.68
Min: 0.82

ERJ’s P/B Ratio of 3.13 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

22.57

Machinery Industry

Max: 7.23
Q3: 3.90
Median: 2.52
Q1: 1.47
Min: 0.49

At 22.57, ITW’s P/B Ratio is at an extreme premium to the 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.

ERJ vs. ITW: A comparison of their Price-to-Book Ratio (MRQ) against their respective Aerospace & Defense and Machinery industry benchmarks.

Valuation at a Glance

Symbol	ERJ	ITW
Price-to-Earnings Ratio (TTM)	27.23	23.00
Price-to-Sales Ratio (TTM)	1.46	4.90
Price-to-Book Ratio (MRQ)	3.13	22.57
Price-to-Free Cash Flow Ratio (TTM)	9.94	28.41