HON vs. ITW: Honeywell vs. Illinois Tool Works Stock Comparison

November 11, 2026

How do Honeywell (HON) 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

Honeywell (HON) and Illinois Tool Works (ITW) both fall under the Capital Goods industry group, but HON is classified in Industrial Conglomerates while ITW is classified in Machinery.

Company profile comparison for Honeywell (HON) and Illinois Tool Works (ITW)
Profile Item	HON	ITW
Name	Honeywell International Inc.	Illinois Tool Works Inc.
Country/Region	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry Group	Capital Goods	Capital Goods
GICS Industry	Industrial Conglomerates	Machinery
GICS Sub-Industry	Industrial Conglomerates	Industrial Machinery & Supplies & Components
Market Capitalization	69.74 billion USD	79.85 billion USD
Currency	USD	USD
Exchange	Nasdaq	NYSE
Listing Date	January 2, 1962	March 13, 1973
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

HON

ITW

GSPC

Honeywell (HON) 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 Honeywell (HON) and Illinois Tool Works (ITW). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Honeywell (HON) 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 Honeywell (HON) and Illinois Tool Works (ITW)
Metric	HON	ITW
Total Return (1Y)	14.14%	20.29%
Total Return (3Y, Annualized)	9.90%	10.62%
Total Return (5Y, Annualized)	2.32%	6.67%

Risk Profile

Drawdown History

HON

ITW

GSPC

Honeywell (HON) 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 Honeywell (HON) 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 Honeywell (HON) and Illinois Tool Works (ITW)
Metric	HON	ITW
Volatility (1Y, Annualized)	27.11%	22.16%
Beta (5Y)	0.80	0.91
Max Drawdown (5Y)	-25.21%	-28.05%
Avg. Volume (3M)	2.82M	1.27M

Risk-Adjusted Performance

Risk-Return Positioning

HON 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 Honeywell (HON) and Illinois Tool Works (ITW)
Metric	HON	ITW
Sharpe Ratio (1Y)	0.36	0.72
Sortino Ratio (1Y)	0.52	1.12

Profitability

ROE (TTM)

Both Honeywell (HON) at 44.39% 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.

HON

Capital Goods industry group

44.39%

HON: 44.39%
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%

Honeywell (HON) 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 Honeywell (HON) at 18.68% 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.

HON

Capital Goods industry group

18.68%

Max: 27.47%
HON: 18.68%
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%

Honeywell (HON) 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 Honeywell (HON) at 16.92%, which runs around its industry’s norm.

HON

Capital Goods industry group

16.92%

Max: 36.60%
Q3: 18.33%
HON: 16.92%
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%

Honeywell (HON) vs. Illinois Tool Works (ITW): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Honeywell (HON) and Illinois Tool Works (ITW)
Metric	HON	ITW
ROE (TTM)	44.39%	101.65%
ROA (TTM)	7.13%	17.13%
Net Margin (TTM)	18.68%	19.39%
Operating Margin (TTM)	16.92%	28.05%
Gross Margin (TTM)	37.21%	44.32%

Growth

Revenue Growth

Honeywell (HON) at 7.85% 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.

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

EPS Growth

Both Honeywell (HON) at -8.27% 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.

Honeywell (HON) vs. Illinois Tool Works (ITW): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Honeywell (HON) and Illinois Tool Works (ITW)
Metric	HON	ITW
Revenue Growth (YoY)	7.85%	0.92%
Revenue Growth (3Y CAGR)	1.82%	0.23%
EPS Growth (YoY)	-8.27%	-10.42%
EPS Growth (3Y CAGR)	3.20%	2.40%

Financial Strength

Current Ratio (MRQ)

Both Honeywell (HON) at 0.96 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.

HON

Capital Goods industry group

0.96

Max: 5.22
Q3: 2.95
Median: 2.08
Q1: 1.43
HON: 0.96
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

Honeywell (HON) vs. Illinois Tool Works (ITW): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Honeywell (HON) at 0.76 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.

HON

Capital Goods industry group

0.76

Max: 2.33
Q3: 1.12
HON: 0.76
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

Honeywell (HON) 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 Honeywell (HON) and Illinois Tool Works (ITW)
Metric	HON	ITW
Current Ratio (MRQ)	0.96	1.29
Debt / Equity (MRQ)	0.76	2.98
Net Debt / EBITDA	1.23	1.76

Dividends

Dividend Yield (TTM)

Illinois Tool Works (ITW) at 2.29% earns its spot in the top quartile of its industry’s yields; Honeywell (HON) at 3.63% is past the top of its own peer range — territory where a dividend-safety check matters more than the headline number.

HON

Capital Goods industry group

3.63%

HON: 3.63%
Max: 2.66%
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%

Honeywell (HON) vs. Illinois Tool Works (ITW): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Both Honeywell (HON) at 38.87% 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.

HON

Capital Goods industry group

38.87%

Max: 67.39%
HON: 38.87%
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%

Honeywell (HON) vs. Illinois Tool Works (ITW): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Honeywell (HON) and Illinois Tool Works (ITW)
Metric	HON	ITW
Dividend Yield (TTM)	3.63%	2.29%
Dividend Payout Ratio (TTM)	38.87%	58.43%

Valuation

P/E Ratio (TTM)

Honeywell (HON) at 10.91 sits in the cheaper P/E ratio quartile, while Illinois Tool Works (ITW) at 25.06 is closer to its industry’s usual earnings multiple — a discount for HON, though growth and earnings durability still matter.

HON

Capital Goods industry group

10.91

Max: 59.38
Q3: 35.92
Median: 25.41
Q1: 19.47
HON: 10.91
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

Honeywell (HON) vs. Illinois Tool Works (ITW): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

Honeywell (HON) at 1.85 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.

HON

Capital Goods industry group

1.85

Max: 7.54
Q3: 3.76
Median: 2.15
HON: 1.85
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

Honeywell (HON) vs. Illinois Tool Works (ITW): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

Honeywell (HON) at 3.12 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.

HON

Capital Goods industry group

3.12

Max: 9.66
Q3: 5.00
HON: 3.12
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

Honeywell (HON) vs. Illinois Tool Works (ITW): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Honeywell (HON) and Illinois Tool Works (ITW)
Metric	HON	ITW
P/E Ratio (TTM)	10.91	25.06
P/S Ratio (TTM)	1.85	4.80
P/B Ratio (MRQ)	3.12	25.42
Free Cash Flow Yield (TTM)	10.07%	2.89%