ITW vs. LECO: Illinois Tool Works vs. Lincoln Electric Stock Comparison

November 11, 2026

How do Illinois Tool Works (ITW) and Lincoln Electric (LECO) 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

Illinois Tool Works (ITW) and Lincoln Electric (LECO) are both classified in the Industrial Machinery & Supplies & Components sub-industry within the broader Machinery industry, placing them in the closest GICS peer bucket.

Company profile comparison for Illinois Tool Works (ITW) and Lincoln Electric (LECO)
Profile Item	ITW	LECO
Name	Illinois Tool Works Inc.	Lincoln Electric Holdings, Inc.
Country/Region	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry Group	Capital Goods	Capital Goods
GICS Industry	Machinery	Machinery
GICS Sub-Industry	Industrial Machinery & Supplies & Components	Industrial Machinery & Supplies & Components
Market Capitalization	79.85 billion USD	14.91 billion USD
Currency	USD	USD
Exchange	NYSE	Nasdaq
Listing Date	March 13, 1973	April 7, 1994
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

ITW

LECO

GSPC

Illinois Tool Works (ITW) vs. Lincoln Electric (LECO), 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 Illinois Tool Works (ITW) and Lincoln Electric (LECO). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Illinois Tool Works (ITW) and Lincoln Electric (LECO). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Illinois Tool Works (ITW) and Lincoln Electric (LECO)
Metric	ITW	LECO
Total Return (1Y)	20.29%	27.30%
Total Return (3Y, Annualized)	10.62%	17.31%
Total Return (5Y, Annualized)	6.67%	16.33%

Risk Profile

Drawdown History

ITW

LECO

GSPC

Illinois Tool Works (ITW) vs. Lincoln Electric (LECO), 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 Illinois Tool Works (ITW) and Lincoln Electric (LECO). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Illinois Tool Works (ITW) and Lincoln Electric (LECO)
Metric	ITW	LECO
Volatility (1Y, Annualized)	22.16%	31.13%
Beta (5Y)	0.91	1.17
Max Drawdown (5Y)	-28.05%	-34.29%
Avg. Volume (3M)	1.27M	409.99K

Risk-Adjusted Performance

Risk-Return Positioning

ITW and LECO 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 Illinois Tool Works (ITW) and Lincoln Electric (LECO)
Metric	ITW	LECO
Sharpe Ratio (1Y)	0.72	0.74
Sortino Ratio (1Y)	1.12	1.11

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; Lincoln Electric (LECO) at 38.75% also sits in the top quartile.

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%

LECO

Capital Goods industry group

38.75%

Max: 40.55%
LECO: 38.75%
Q3: 19.29%
Median: 12.12%
Q1: 4.08%
Min: -17.12%

Illinois Tool Works (ITW) vs. Lincoln Electric (LECO): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

For every dollar of sales, both Illinois Tool Works (ITW) at 19.39% and Lincoln Electric (LECO) at 12.40% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

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%

LECO

Capital Goods industry group

12.40%

Max: 27.47%
LECO: 12.40%
Q3: 12.10%
Median: 6.30%
Q1: 1.40%
Min: -12.89%

Illinois Tool Works (ITW) vs. Lincoln Electric (LECO): 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 Lincoln Electric (LECO) at 18.29%, which runs around its industry’s norm.

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%

LECO

Capital Goods industry group

18.29%

Max: 36.60%
Q3: 18.33%
LECO: 18.29%
Median: 11.12%
Q1: 5.14%
Min: -12.63%

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

Profitability Metrics

Profitability metrics for Illinois Tool Works (ITW) and Lincoln Electric (LECO)
Metric	ITW	LECO
ROE (TTM)	101.65%	38.75%
ROA (TTM)	17.13%	13.32%
Net Margin (TTM)	19.39%	12.40%
Operating Margin (TTM)	28.05%	18.29%
Gross Margin (TTM)	44.32%	35.54%

Growth

Revenue Growth

Lincoln Electric (LECO) at 5.60% 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.

Illinois Tool Works (ITW) vs. Lincoln Electric (LECO): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Illinois Tool Works (ITW) at -10.42% and Lincoln Electric (LECO) at 14.36% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

Illinois Tool Works (ITW) vs. Lincoln Electric (LECO): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Illinois Tool Works (ITW) and Lincoln Electric (LECO)
Metric	ITW	LECO
Revenue Growth (YoY)	0.92%	5.60%
Revenue Growth (3Y CAGR)	0.23%	4.02%
EPS Growth (YoY)	-10.42%	14.36%
EPS Growth (3Y CAGR)	2.40%	5.05%

Financial Strength

Current Ratio (MRQ)

Lincoln Electric (LECO) at 1.91 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.

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

LECO

Capital Goods industry group

1.91

Max: 5.22
Q3: 2.95
Median: 2.08
LECO: 1.91
Q1: 1.43
Min: 0.36

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

Debt / Equity (MRQ)

Lincoln Electric (LECO) at 0.78 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.

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

LECO

Capital Goods industry group

0.78

Max: 2.33
Q3: 1.12
LECO: 0.78
Median: 0.60
Q1: 0.29
Min: 0.00

Illinois Tool Works (ITW) vs. Lincoln Electric (LECO): A comparison of their debt-to-equity ratio against the Capital Goods industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Illinois Tool Works (ITW) and Lincoln Electric (LECO)
Metric	ITW	LECO
Current Ratio (MRQ)	1.29	1.91
Debt / Equity (MRQ)	2.98	0.78
Net Debt / EBITDA	1.76	1.00

Dividends

Dividend Yield (TTM)

Both Illinois Tool Works (ITW) at 2.29% and Lincoln Electric (LECO) at 1.16% offer top-quartile dividend income relative to share price within their industries.

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%

LECO

Capital Goods industry group

1.16%

Max: 2.66%
LECO: 1.16%
Q3: 1.14%
Median: 0.24%
Q1: 0.00%
Min: 0.00%

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

Dividend Payout Ratio (TTM)

Both Illinois Tool Works (ITW) at 58.43% and Lincoln Electric (LECO) at 30.30% pay out an above-typical share of earnings for their industries, leaving thinner cover if profits dip.

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%

LECO

Capital Goods industry group

30.30%

Max: 67.39%
LECO: 30.30%
Q3: 28.02%
Median: 6.86%
Q1: 0.00%
Min: 0.00%

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

Dividend Metrics

Dividend metrics for Illinois Tool Works (ITW) and Lincoln Electric (LECO)
Metric	ITW	LECO
Dividend Yield (TTM)	2.29%	1.16%
Dividend Payout Ratio (TTM)	58.43%	30.30%

Valuation

P/E Ratio (TTM)

Both Illinois Tool Works (ITW) at 25.06 and Lincoln Electric (LECO) at 26.40 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

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

LECO

Capital Goods industry group

26.40

Max: 59.38
Q3: 35.92
LECO: 26.40
Median: 25.41
Q1: 19.47
Min: 3.03

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

P/S Ratio (TTM)

Lincoln Electric (LECO) at 3.21 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.

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

LECO

Capital Goods industry group

3.21

Max: 7.54
Q3: 3.76
LECO: 3.21
Median: 2.15
Q1: 1.03
Min: 0.03

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

P/B Ratio (MRQ)

Both look rich against book: Lincoln Electric (LECO) at 9.59 sits in the upper P/B ratio quartile, and Illinois Tool Works (ITW) at 25.42 prices even higher, above its industry range.

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

LECO

Capital Goods industry group

9.59

Max: 9.66
LECO: 9.59
Q3: 5.00
Median: 3.12
Q1: 1.81
Min: -1.08

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

Valuation Metrics

Valuation metrics for Illinois Tool Works (ITW) and Lincoln Electric (LECO)
Metric	ITW	LECO
P/E Ratio (TTM)	25.06	26.40
P/S Ratio (TTM)	4.80	3.21
P/B Ratio (MRQ)	25.42	9.59
Free Cash Flow Yield (TTM)	2.89%	2.68%