Seek Returns logo

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

Updated on

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

Company Profile

SymbolGPCITW
Company NameGenuine Parts CompanyIllinois Tool Works Inc.
CountryUnited StatesUnited States
GICS SectorConsumer DiscretionaryIndustrials
GICS IndustryDistributorsMachinery
Market Capitalization19.05 billion USD76.38 billion USD
ExchangeNYSENYSE
Listing DateMarch 17, 1980March 13, 1973
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of GPC 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.

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

Historical Performance at a Glance

SymbolGPCITW
5-Day Price Return-0.57%-0.18%
13-Week Price Return6.12%4.10%
26-Week Price Return9.87%0.74%
52-Week Price Return-1.22%7.98%
Month-to-Date Return6.29%2.36%
Year-to-Date Return17.33%3.34%
10-Day Avg. Volume0.91M0.88M
3-Month Avg. Volume1.22M1.04M
3-Month Volatility23.84%17.76%
Beta0.781.13

Profitability

Return on Equity (TTM)

GPC

17.79%

Distributors Industry

Max
18.85%
Q3
17.85%
Median
13.11%
Q1
11.23%
Min
11.19%

GPC’s Return on Equity of 17.79% is on par with the norm for the Distributors 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.

GPC vs. ITW: A comparison of their Return on Equity (TTM) against their respective Distributors and Machinery industry benchmarks.

Net Profit Margin (TTM)

GPC

3.40%

Distributors Industry

Max
5.04%
Q3
4.92%
Median
4.56%
Q1
4.55%
Min
4.54%

GPC’s Net Profit Margin of 3.40% is below the typical range for the Distributors industry. This suggests the company may be facing challenges with cost control or operating in a highly competitive environment that limits its pricing power.

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.

GPC vs. ITW: A comparison of their Net Profit Margin (TTM) against their respective Distributors and Machinery industry benchmarks.

Operating Profit Margin (TTM)

GPC

4.95%

Distributors Industry

Max
11.14%
Q3
7.80%
Median
5.53%
Q1
3.65%
Min
3.17%

GPC’s Operating Profit Margin of 4.95% is around the midpoint for the Distributors industry, indicating that its efficiency in managing core business operations is typical for the sector.

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.

GPC vs. ITW: A comparison of their Operating Profit Margin (TTM) against their respective Distributors and Machinery industry benchmarks.

Profitability at a Glance

SymbolGPCITW
Return on Equity (TTM)17.79%102.30%
Return on Assets (TTM)4.06%21.57%
Net Profit Margin (TTM)3.40%21.31%
Operating Profit Margin (TTM)4.95%25.98%
Gross Profit Margin (TTM)36.88%43.74%

Financial Strength

Current Ratio (MRQ)

GPC

1.14

Distributors Industry

Max
1.81
Q3
1.72
Median
1.48
Q1
1.24
Min
1.15

GPC’s Current Ratio of 1.14 is notably low, falling beneath the typical range for the Distributors industry. This suggests a heightened liquidity risk and could indicate potential challenges in meeting its short-term obligations.

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.

GPC vs. ITW: A comparison of their Current Ratio (MRQ) against their respective Distributors and Machinery industry benchmarks.

Debt-to-Equity Ratio (MRQ)

GPC

1.02

Distributors Industry

Max
1.09
Q3
0.98
Median
0.75
Q1
0.52
Min
0.46

GPC’s leverage is in the upper quartile of the Distributors industry, with a Debt-to-Equity Ratio of 1.02. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

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.

GPC vs. ITW: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Distributors and Machinery industry benchmarks.

Interest Coverage Ratio (TTM)

GPC

13.15

Distributors Industry

Max
13.15
Q3
10.84
Median
5.59
Q1
4.01
Min
3.80

GPC’s Interest Coverage Ratio of 13.15 is in the upper quartile for the Distributors 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.

GPC vs. ITW: A comparison of their Interest Coverage Ratio (TTM) against their respective Distributors and Machinery industry benchmarks.

Financial Strength at a Glance

SymbolGPCITW
Current Ratio (MRQ)1.141.59
Quick Ratio (MRQ)0.491.04
Debt-to-Equity Ratio (MRQ)1.022.78
Interest Coverage Ratio (TTM)13.1520.06

Growth

Revenue Growth

GPC 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

GPC 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)

GPC

2.93%

Distributors Industry

Max
44.83%
Q3
35.02%
Median
4.81%
Q1
3.26%
Min
1.54%

GPC’s Dividend Yield of 2.93% is in the lower quartile for the Distributors industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

ITW

2.26%

Machinery Industry

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

ITW’s Dividend Yield of 2.26% is consistent with its peers in the Machinery industry, providing a dividend return that is standard for its sector.

GPC vs. ITW: A comparison of their Dividend Yield (TTM) against their respective Distributors and Machinery industry benchmarks.

Dividend Payout Ratio (TTM)

GPC

69.26%

Distributors Industry

Max
1,122.47%
Q3
858.23%
Median
55.08%
Q1
44.32%
Min
34.92%

GPC’s Dividend Payout Ratio of 69.26% is within the typical range for the Distributors 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.

GPC vs. ITW: A comparison of their Dividend Payout Ratio (TTM) against their respective Distributors and Machinery industry benchmarks.

Dividend at a Glance

SymbolGPCITW
Dividend Yield (TTM)2.93%2.26%
Dividend Payout Ratio (TTM)69.26%51.65%

Valuation

Price-to-Earnings Ratio (TTM)

GPC

23.67

Distributors Industry

Max
28.99
Q3
25.04
Median
23.42
Q1
13.71
Min
6.24

GPC’s P/E Ratio of 23.67 is within the middle range for the Distributors 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

22.83

Machinery Industry

Max
53.66
Q3
31.29
Median
22.00
Q1
16.18
Min
7.00

ITW’s P/E Ratio of 22.83 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.

GPC vs. ITW: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Distributors and Machinery industry benchmarks.

Price-to-Sales Ratio (TTM)

GPC

0.81

Distributors Industry

Max
1.14
Q3
1.14
Median
0.96
Q1
0.61
Min
0.28

GPC’s P/S Ratio of 0.81 aligns with the market consensus for the Distributors industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

ITW

4.87

Machinery Industry

Max
5.04
Q3
2.72
Median
1.67
Q1
1.04
Min
0.24

ITW’s P/S Ratio of 4.87 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.

GPC vs. ITW: A comparison of their Price-to-Sales Ratio (TTM) against their respective Distributors and Machinery industry benchmarks.

Price-to-Book Ratio (MRQ)

GPC

3.58

Distributors Industry

Max
3.72
Q3
3.57
Median
3.12
Q1
2.41
Min
1.47

GPC’s P/B Ratio of 3.58 is in the upper tier for the Distributors industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.

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.

GPC vs. ITW: A comparison of their Price-to-Book Ratio (MRQ) against their respective Distributors and Machinery industry benchmarks.

Valuation at a Glance

SymbolGPCITW
Price-to-Earnings Ratio (TTM)23.6722.83
Price-to-Sales Ratio (TTM)0.814.87
Price-to-Book Ratio (MRQ)3.5822.57
Price-to-Free Cash Flow Ratio (TTM)43.6128.21