Seek Returns

ITW vs. LII: Illinois Tool Works vs. Lennox Stock Comparison

How do Illinois Tool Works (ITW) and Lennox (LII) 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 Lennox (LII) both fall under the Capital Goods industry group, but ITW is classified in Machinery while LII is classified in Building Products.

Company profile comparison for Illinois Tool Works (ITW) and Lennox (LII)
Profile ItemITWLII
NameIllinois Tool Works Inc.Lennox International Inc.
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryMachineryBuilding Products
GICS Sub-IndustryIndustrial Machinery & Supplies & ComponentsBuilding Products
Market Capitalization79.85 billion USD11.70 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateMarch 13, 1973July 29, 1999
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

ITW
LII
GSPC
Loading price history…
Illinois Tool Works (ITW) vs. Lennox (LII), 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

Loading price history…
Trailing total returns for Illinois Tool Works (ITW) and Lennox (LII). Returns over one year are annualized.

Calendar-Year Returns

Loading price history…
Calendar-year total returns for Illinois Tool Works (ITW) and Lennox (LII). 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 Lennox (LII)
MetricITWLII
Total Return (1Y)20.29%-27.83%
Total Return (3Y, Annualized)10.62%-2.32%
Total Return (5Y, Annualized)6.67%3.79%

Risk Profile

Drawdown History

ITW
LII
GSPC
Loading price history…
Illinois Tool Works (ITW) vs. Lennox (LII), 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

Loading price history…
Distribution of monthly total returns for Illinois Tool Works (ITW) and Lennox (LII). 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 Lennox (LII)
MetricITWLII
Volatility (1Y, Annualized)22.16%41.59%
Beta (5Y)0.911.18
Max Drawdown (5Y)-28.05%-49.95%
Avg. Volume (3M)1.27M563.34K

Risk-Adjusted Performance

Risk-Return Positioning

Loading chart…
ITW and LII 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 Lennox (LII)
MetricITWLII
Sharpe Ratio (1Y)0.72-0.77
Sortino Ratio (1Y)1.12-0.96

Profitability

ROE (TTM)

Both Illinois Tool Works (ITW) at 101.65% and Lennox (LII) at 62.82% 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.

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%

LII

Capital Goods industry group

62.82%

LII
62.82%
Max
40.55%
Q3
19.29%
Median
12.12%
Q1
4.08%
Min
-17.12%
Loading chart…
Illinois Tool Works (ITW) vs. Lennox (LII): 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 Lennox (LII) at 13.76% 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%

LII

Capital Goods industry group

13.76%

Max
27.47%
LII
13.76%
Q3
12.10%
Median
6.30%
Q1
1.40%
Min
-12.89%
Loading chart…
Illinois Tool Works (ITW) vs. Lennox (LII): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Both Illinois Tool Works (ITW) at 28.05% and Lennox (LII) at 20.57% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

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%

LII

Capital Goods industry group

20.57%

Max
36.60%
LII
20.57%
Q3
18.33%
Median
11.12%
Q1
5.14%
Min
-12.63%
Loading chart…
Illinois Tool Works (ITW) vs. Lennox (LII): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Illinois Tool Works (ITW) and Lennox (LII)
MetricITWLII
ROE (TTM)101.65%62.82%
ROA (TTM)17.13%15.93%
Net Margin (TTM)19.39%13.76%
Operating Margin (TTM)28.05%20.57%
Gross Margin (TTM)44.32%32.62%

Growth

Revenue Growth

Both Illinois Tool Works (ITW) at 0.92% and Lennox (LII) at -2.73% post bottom-quartile revenue growth versus peers, pointing to weaker demand or pricing momentum than typical rivals.

Loading chart…
Illinois Tool Works (ITW) vs. Lennox (LII): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Illinois Tool Works (ITW) at -10.42% and Lennox (LII) at 1.11% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

Loading chart…
Illinois Tool Works (ITW) vs. Lennox (LII): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Illinois Tool Works (ITW) and Lennox (LII)
MetricITWLII
Revenue Growth (YoY)0.92%-2.73%
Revenue Growth (3Y CAGR)0.23%3.26%
EPS Growth (YoY)-10.42%1.11%
EPS Growth (3Y CAGR)2.40%17.97%

Financial Strength

Current Ratio (MRQ)

Both Illinois Tool Works (ITW) at 1.29 and Lennox (LII) at 1.21 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

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

LII

Capital Goods industry group

1.21

Max
5.22
Q3
2.95
Median
2.08
Q1
1.43
LII
1.21
Min
0.36
Loading chart…
Illinois Tool Works (ITW) vs. Lennox (LII): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Both balance sheets lean debt-heavy versus peers, but ITW is more stretched: Lennox (LII) at 1.58 sits in the higher-leverage quartile and Illinois Tool Works (ITW) at 2.98 is above its industry benchmark range.

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

LII

Capital Goods industry group

1.58

Max
2.33
LII
1.58
Q3
1.12
Median
0.60
Q1
0.29
Min
0.00
Loading chart…
Illinois Tool Works (ITW) vs. Lennox (LII): 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 Lennox (LII)
MetricITWLII
Current Ratio (MRQ)1.291.21
Debt / Equity (MRQ)2.981.58
Net Debt / EBITDA1.761.73

Dividends

Dividend Yield (TTM)

Both Illinois Tool Works (ITW) at 2.29% and Lennox (LII) at 1.53% 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%

LII

Capital Goods industry group

1.53%

Max
2.66%
LII
1.53%
Q3
1.14%
Median
0.24%
Q1
0.00%
Min
0.00%
Loading chart…
Illinois Tool Works (ITW) vs. Lennox (LII): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Lennox (LII) at 24.68% 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.

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%

LII

Capital Goods industry group

24.68%

Max
67.39%
Q3
28.02%
LII
24.68%
Median
6.86%
Q1
0.00%
Min
0.00%
Loading chart…
Illinois Tool Works (ITW) vs. Lennox (LII): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Illinois Tool Works (ITW) and Lennox (LII)
MetricITWLII
Dividend Yield (TTM)2.29%1.53%
Dividend Payout Ratio (TTM)58.43%24.68%

Valuation

P/E Ratio (TTM)

Lennox (LII) at 15.47 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 LII, though growth and earnings durability still matter.

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

LII

Capital Goods industry group

15.47

Max
59.38
Q3
35.92
Median
25.41
Q1
19.47
LII
15.47
Min
3.03
Loading chart…
Illinois Tool Works (ITW) vs. Lennox (LII): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

Lennox (LII) at 2.15 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

LII

Capital Goods industry group

2.15

Max
7.54
Q3
3.76
Median
2.15
LII
2.15
Q1
1.03
Min
0.03
Loading chart…
Illinois Tool Works (ITW) vs. Lennox (LII): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

Both look rich against book: Lennox (LII) at 8.88 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

LII

Capital Goods industry group

8.88

Max
9.66
LII
8.88
Q3
5.00
Median
3.12
Q1
1.81
Min
-1.08
Loading chart…
Illinois Tool Works (ITW) vs. Lennox (LII): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Illinois Tool Works (ITW) and Lennox (LII)
MetricITWLII
P/E Ratio (TTM)25.0615.47
P/S Ratio (TTM)4.802.15
P/B Ratio (MRQ)25.428.88
Free Cash Flow Yield (TTM)2.89%3.14%