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ETN vs. ITW: Eaton vs. Illinois Tool Works Stock Comparison

How do Eaton (ETN) 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

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

Company profile comparison for Eaton (ETN) and Illinois Tool Works (ITW)
Profile ItemETNITW
NameEaton Corporation plcIllinois Tool Works Inc.
Country/RegionIrelandUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryElectrical EquipmentMachinery
GICS Sub-IndustryElectrical Components & EquipmentIndustrial Machinery & Supplies & Components
Market Capitalization132.76 billion USD79.85 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJune 1, 1972March 13, 1973
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

ETN
ITW
GSPC
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Eaton (ETN) 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 Eaton (ETN) and Illinois Tool Works (ITW). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Eaton (ETN) 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 Eaton (ETN) and Illinois Tool Works (ITW)
MetricETNITW
Total Return (1Y)-2.33%20.29%
Total Return (3Y, Annualized)19.68%10.62%
Total Return (5Y, Annualized)17.50%6.67%

Risk Profile

Drawdown History

ETN
ITW
GSPC
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Eaton (ETN) 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 Eaton (ETN) 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 Eaton (ETN) and Illinois Tool Works (ITW)
MetricETNITW
Volatility (1Y, Annualized)43.57%22.16%
Beta (5Y)1.140.91
Max Drawdown (5Y)-34.46%-28.05%
Avg. Volume (3M)2.32M1.27M

Risk-Adjusted Performance

Risk-Return Positioning

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ETN 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 Eaton (ETN) and Illinois Tool Works (ITW)
MetricETNITW
Sharpe Ratio (1Y)-0.150.72
Sortino Ratio (1Y)-0.211.12

Profitability

ROE (TTM)

Both companies show strong equity returns, but Illinois Tool Works (ITW) at 101.65% is the standout with ROE above its industry range; Eaton (ETN) at 19.55% also sits in the top quartile.

ETN

Capital Goods industry group

19.55%

Max
40.55%
ETN
19.55%
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%
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Eaton (ETN) 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 Eaton (ETN) at 12.18% 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.

ETN

Capital Goods industry group

12.18%

Max
27.47%
ETN
12.18%
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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Eaton (ETN) vs. Illinois Tool Works (ITW): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Illinois Tool Works (ITW) at 28.05% operates in the top operating margin quartile, ahead of Eaton (ETN) at 17.85%, which runs around its industry’s norm.

ETN

Capital Goods industry group

17.85%

Max
36.60%
Q3
18.33%
ETN
17.85%
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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Eaton (ETN) vs. Illinois Tool Works (ITW): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Eaton (ETN) and Illinois Tool Works (ITW)
MetricETNITW
ROE (TTM)19.55%101.65%
ROA (TTM)7.22%17.13%
Net Margin (TTM)12.18%19.39%
Operating Margin (TTM)17.85%28.05%
Gross Margin (TTM)35.16%44.32%

Growth

Revenue Growth

Eaton (ETN) at 10.33% 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.

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

EPS Growth

Both Eaton (ETN) at 10.00% 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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Eaton (ETN) vs. Illinois Tool Works (ITW): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Eaton (ETN) and Illinois Tool Works (ITW)
MetricETNITW
Revenue Growth (YoY)10.33%0.92%
Revenue Growth (3Y CAGR)9.77%0.23%
EPS Growth (YoY)10.00%-10.42%
EPS Growth (3Y CAGR)19.39%2.40%

Financial Strength

Current Ratio (MRQ)

Both Eaton (ETN) at 1.23 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.

ETN

Capital Goods industry group

1.23

Max
5.22
Q3
2.95
Median
2.08
Q1
1.43
ETN
1.23
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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Eaton (ETN) vs. Illinois Tool Works (ITW): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Eaton (ETN) at 1.00 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.

ETN

Capital Goods industry group

1.00

Max
2.33
Q3
1.12
ETN
1.00
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
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Eaton (ETN) 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 Eaton (ETN) and Illinois Tool Works (ITW)
MetricETNITW
Current Ratio (MRQ)1.231.29
Debt / Equity (MRQ)1.002.98
Net Debt / EBITDA2.851.76

Dividends

Dividend Yield (TTM)

Both Eaton (ETN) at 1.33% and Illinois Tool Works (ITW) at 2.29% offer top-quartile dividend income relative to share price within their industries.

ETN

Capital Goods industry group

1.33%

Max
2.66%
ETN
1.33%
Q3
1.14%
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%
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Eaton (ETN) vs. Illinois Tool Works (ITW): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Both Eaton (ETN) at 43.36% 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.

ETN

Capital Goods industry group

43.36%

Max
67.39%
ETN
43.36%
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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Eaton (ETN) vs. Illinois Tool Works (ITW): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Eaton (ETN) and Illinois Tool Works (ITW)
MetricETNITW
Dividend Yield (TTM)1.33%2.29%
Dividend Payout Ratio (TTM)43.36%58.43%

Valuation

P/E Ratio (TTM)

Both Eaton (ETN) at 34.14 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.

ETN

Capital Goods industry group

34.14

Max
59.38
Q3
35.92
ETN
34.14
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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Eaton (ETN) vs. Illinois Tool Works (ITW): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

Both Eaton (ETN) at 4.15 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.

ETN

Capital Goods industry group

4.15

Max
7.54
ETN
4.15
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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Eaton (ETN) vs. Illinois Tool Works (ITW): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

Both look rich against book: Eaton (ETN) at 6.33 sits in the upper P/B ratio quartile, and Illinois Tool Works (ITW) at 25.42 prices even higher, above its industry range.

ETN

Capital Goods industry group

6.33

Max
9.66
ETN
6.33
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
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Eaton (ETN) vs. Illinois Tool Works (ITW): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Eaton (ETN) and Illinois Tool Works (ITW)
MetricETNITW
P/E Ratio (TTM)34.1425.06
P/S Ratio (TTM)4.154.80
P/B Ratio (MRQ)6.3325.42
Free Cash Flow Yield (TTM)2.29%2.89%