HWM vs. ITW: Howmet Aerospace vs. Illinois Tool Works Stock Comparison
How do Howmet Aerospace (HWM) 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
Howmet Aerospace (HWM) and Illinois Tool Works (ITW) both fall under the Capital Goods industry group, but HWM is classified in Aerospace & Defense while ITW is classified in Machinery.
| Profile Item | HWM | ITW |
|---|---|---|
| Name | Howmet Aerospace Inc. | Illinois Tool Works Inc. |
| Country/Region | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry Group | Capital Goods | Capital Goods |
| GICS Industry | Aerospace & Defense | Machinery |
| GICS Sub-Industry | Aerospace & Defense | Industrial Machinery & Supplies & Components |
| Market Capitalization | 81.84 billion USD | 79.85 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | November 1, 2016 | March 13, 1973 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | HWM | ITW |
|---|---|---|
| Total Return (1Y) | 5.06% | 20.29% |
| Total Return (3Y, Annualized) | 64.83% | 10.62% |
| Total Return (5Y, Annualized) | 46.04% | 6.67% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | HWM | ITW |
|---|---|---|
| Volatility (1Y, Annualized) | 37.60% | 22.16% |
| Beta (5Y) | 1.27 | 0.91 |
| Max Drawdown (5Y) | -36.47% | -28.05% |
| Avg. Volume (3M) | 3.47M | 1.27M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | HWM | ITW |
|---|---|---|
| Sharpe Ratio (1Y) | 0.02 | 0.72 |
| Sortino Ratio (1Y) | 0.03 | 1.12 |
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; Howmet Aerospace (HWM) at 37.65% also sits in the top quartile.
HWM
Capital Goods industry group
37.65%
- Max
- 40.55%
- HWM
- 37.65%
- 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%
Net Margin (TTM)
For every dollar of sales, both Howmet Aerospace (HWM) at 21.10% 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.
HWM
Capital Goods industry group
21.10%
- Max
- 27.47%
- HWM
- 21.10%
- 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%
Operating Margin (TTM)
Both Howmet Aerospace (HWM) at 28.78% and Illinois Tool Works (ITW) at 28.05% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.
HWM
Capital Goods industry group
28.78%
- Max
- 36.60%
- HWM
- 28.78%
- Q3
- 18.33%
- 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%
Profitability Metrics
| Metric | HWM | ITW |
|---|---|---|
| ROE (TTM) | 37.65% | 101.65% |
| ROA (TTM) | 13.97% | 17.13% |
| Net Margin (TTM) | 21.10% | 19.39% |
| Operating Margin (TTM) | 28.78% | 28.05% |
| Gross Margin (TTM) | 36.63% | 44.32% |
Growth
Revenue Growth
Howmet Aerospace (HWM) at 11.06% 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.
EPS Growth
Howmet Aerospace (HWM) at 32.03% sits in the top EPS growth quartile, while Illinois Tool Works (ITW) at -10.42% is closer to the peer norm — faster per-share earnings growth for HWM.
Growth Metrics
| Metric | HWM | ITW |
|---|---|---|
| Revenue Growth (YoY) | 11.06% | 0.92% |
| Revenue Growth (3Y CAGR) | 13.37% | 0.23% |
| EPS Growth (YoY) | 32.03% | -10.42% |
| EPS Growth (3Y CAGR) | 49.51% | 2.40% |
Financial Strength
Current Ratio (MRQ)
Howmet Aerospace (HWM) at 1.86 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.
HWM
Capital Goods industry group
1.86
- Max
- 5.22
- Q3
- 2.95
- Median
- 2.08
- HWM
- 1.86
- 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
Debt / Equity (MRQ)
Howmet Aerospace (HWM) at 0.80 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.
HWM
Capital Goods industry group
0.80
- Max
- 2.33
- Q3
- 1.12
- HWM
- 0.80
- 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
Financial Strength Metrics
| Metric | HWM | ITW |
|---|---|---|
| Current Ratio (MRQ) | 1.86 | 1.29 |
| Debt / Equity (MRQ) | 0.80 | 2.98 |
| Net Debt / EBITDA | 1.35 | 1.76 |
Dividends
Dividend Yield (TTM)
Illinois Tool Works (ITW) at 2.29% delivers top-quartile income for its industry, while Howmet Aerospace (HWM) at 0.25% pays a more typical yield — both are credible income propositions, ITW the richer one.
HWM
Capital Goods industry group
0.25%
- Max
- 2.66%
- Q3
- 1.14%
- HWM
- 0.25%
- 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%
Dividend Payout Ratio (TTM)
Howmet Aerospace (HWM) at 9.80% 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.
HWM
Capital Goods industry group
9.80%
- Max
- 67.39%
- Q3
- 28.02%
- HWM
- 9.80%
- 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%
Dividend Metrics
| Metric | HWM | ITW |
|---|---|---|
| Dividend Yield (TTM) | 0.25% | 2.29% |
| Dividend Payout Ratio (TTM) | 9.80% | 58.43% |
Valuation
P/E Ratio (TTM)
Illinois Tool Works (ITW) at 25.06 is near its industry’s usual P/E ratio, while Howmet Aerospace (HWM) at 40.35 sits in the richer quartile — HWM needs stronger growth or earnings quality to justify the premium.
HWM
Capital Goods industry group
40.35
- Max
- 59.38
- HWM
- 40.35
- Q3
- 35.92
- 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
P/S Ratio (TTM)
Both look expensive on sales: Illinois Tool Works (ITW) at 4.80 sits in the upper P/S ratio quartile, and Howmet Aerospace (HWM) at 8.41 prices even higher, above its industry range.
HWM
Capital Goods industry group
8.41
- HWM
- 8.41
- Max
- 7.54
- 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
P/B Ratio (MRQ)
Measured against book value, both Howmet Aerospace (HWM) at 14.20 and Illinois Tool Works (ITW) at 25.42 look expensive — each P/B ratio sits above its industry’s benchmark range.
HWM
Capital Goods industry group
14.20
- HWM
- 14.20
- 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
Valuation Metrics
| Metric | HWM | ITW |
|---|---|---|
| P/E Ratio (TTM) | 40.35 | 25.06 |
| P/S Ratio (TTM) | 8.41 | 4.80 |
| P/B Ratio (MRQ) | 14.20 | 25.42 |
| Free Cash Flow Yield (TTM) | 1.58% | 2.89% |