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GWW vs. ITW: W.W. Grainger vs. Illinois Tool Works Stock Comparison

How do W.W. Grainger (GWW) 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

W.W. Grainger (GWW) and Illinois Tool Works (ITW) both fall under the Capital Goods industry group, but GWW is classified in Trading Companies & Distributors while ITW is classified in Machinery.

Company profile comparison for W.W. Grainger (GWW) and Illinois Tool Works (ITW)
Profile ItemGWWITW
NameW.W. Grainger Inc.Illinois Tool Works Inc.
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryTrading Companies & DistributorsMachinery
GICS Sub-IndustryTrading Companies & DistributorsIndustrial Machinery & Supplies & Components
Market Capitalization67.45 billion USD79.85 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateFebruary 21, 1973March 13, 1973
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

GWW
ITW
GSPC
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W.W. Grainger (GWW) 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 W.W. Grainger (GWW) and Illinois Tool Works (ITW). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for W.W. Grainger (GWW) 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 W.W. Grainger (GWW) and Illinois Tool Works (ITW)
MetricGWWITW
Total Return (1Y)54.07%20.29%
Total Return (3Y, Annualized)24.16%10.62%
Total Return (5Y, Annualized)25.95%6.67%

Risk Profile

Drawdown History

GWW
ITW
GSPC
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W.W. Grainger (GWW) 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 W.W. Grainger (GWW) 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 W.W. Grainger (GWW) and Illinois Tool Works (ITW)
MetricGWWITW
Volatility (1Y, Annualized)24.49%22.16%
Beta (5Y)0.930.91
Max Drawdown (5Y)-24.50%-28.05%
Avg. Volume (3M)250.35K1.27M

Risk-Adjusted Performance

Risk-Return Positioning

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GWW 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 W.W. Grainger (GWW) and Illinois Tool Works (ITW)
MetricGWWITW
Sharpe Ratio (1Y)2.030.72
Sortino Ratio (1Y)3.311.12

Profitability

ROE (TTM)

Both W.W. Grainger (GWW) at 52.33% 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.

GWW

Capital Goods industry group

52.33%

GWW
52.33%
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%
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W.W. Grainger (GWW) vs. Illinois Tool Works (ITW): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

Illinois Tool Works (ITW) at 19.39% retains a top-quartile share of revenue as profit, ahead of W.W. Grainger (GWW) at 11.17%, which keeps about the industry-typical share.

GWW

Capital Goods industry group

11.17%

Max
27.47%
Q3
12.10%
GWW
11.17%
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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W.W. Grainger (GWW) 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 W.W. Grainger (GWW) at 16.14%, which runs around its industry’s norm.

GWW

Capital Goods industry group

16.14%

Max
36.60%
Q3
18.33%
GWW
16.14%
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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W.W. Grainger (GWW) vs. Illinois Tool Works (ITW): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for W.W. Grainger (GWW) and Illinois Tool Works (ITW)
MetricGWWITW
ROE (TTM)52.33%101.65%
ROA (TTM)20.34%17.13%
Net Margin (TTM)11.17%19.39%
Operating Margin (TTM)16.14%28.05%
Gross Margin (TTM)39.43%44.32%

Growth

Revenue Growth

W.W. Grainger (GWW) at 4.51% 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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W.W. Grainger (GWW) vs. Illinois Tool Works (ITW): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both W.W. Grainger (GWW) at -8.55% 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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W.W. Grainger (GWW) vs. Illinois Tool Works (ITW): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for W.W. Grainger (GWW) and Illinois Tool Works (ITW)
MetricGWWITW
Revenue Growth (YoY)4.51%0.92%
Revenue Growth (3Y CAGR)5.62%0.23%
EPS Growth (YoY)-8.55%-10.42%
EPS Growth (3Y CAGR)5.60%2.40%

Financial Strength

Current Ratio (MRQ)

W.W. Grainger (GWW) at 2.61 keeps current ratio within its industry’s typical mid-range, while Illinois Tool Works (ITW) at 1.29 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for ITW.

GWW

Capital Goods industry group

2.61

Max
5.22
Q3
2.95
GWW
2.61
Median
2.08
Q1
1.43
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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W.W. Grainger (GWW) vs. Illinois Tool Works (ITW): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

W.W. Grainger (GWW) at 0.65 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.

GWW

Capital Goods industry group

0.65

Max
2.33
Q3
1.12
GWW
0.65
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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W.W. Grainger (GWW) 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 W.W. Grainger (GWW) and Illinois Tool Works (ITW)
MetricGWWITW
Current Ratio (MRQ)2.611.29
Debt / Equity (MRQ)0.652.98
Net Debt / EBITDA0.691.76

Dividends

Dividend Yield (TTM)

Illinois Tool Works (ITW) at 2.29% delivers top-quartile income for its industry, while W.W. Grainger (GWW) at 0.65% pays a more typical yield — both are credible income propositions, ITW the richer one.

GWW

Capital Goods industry group

0.65%

Max
2.66%
Q3
1.14%
GWW
0.65%
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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W.W. Grainger (GWW) vs. Illinois Tool Works (ITW): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

W.W. Grainger (GWW) at 20.87% 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.

GWW

Capital Goods industry group

20.87%

Max
67.39%
Q3
28.02%
GWW
20.87%
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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W.W. Grainger (GWW) vs. Illinois Tool Works (ITW): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for W.W. Grainger (GWW) and Illinois Tool Works (ITW)
MetricGWWITW
Dividend Yield (TTM)0.65%2.29%
Dividend Payout Ratio (TTM)20.87%58.43%

Valuation

P/E Ratio (TTM)

Both W.W. Grainger (GWW) at 31.66 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.

GWW

Capital Goods industry group

31.66

Max
59.38
Q3
35.92
GWW
31.66
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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W.W. Grainger (GWW) vs. Illinois Tool Works (ITW): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

W.W. Grainger (GWW) at 3.48 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.

GWW

Capital Goods industry group

3.48

Max
7.54
Q3
3.76
GWW
3.48
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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W.W. Grainger (GWW) 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 W.W. Grainger (GWW) at 15.56 and Illinois Tool Works (ITW) at 25.42 look expensive — each P/B ratio sits above its industry’s benchmark range.

GWW

Capital Goods industry group

15.56

GWW
15.56
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
Loading chart…
W.W. Grainger (GWW) vs. Illinois Tool Works (ITW): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for W.W. Grainger (GWW) and Illinois Tool Works (ITW)
MetricGWWITW
P/E Ratio (TTM)31.6625.06
P/S Ratio (TTM)3.484.80
P/B Ratio (MRQ)15.5625.42
Free Cash Flow Yield (TTM)1.97%2.89%