ITW vs. LMT: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ITW and LMT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | ITW | LMT |
|---|---|---|
| Company Name | Illinois Tool Works Inc. | Lockheed Martin Corporation |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Machinery | Aerospace & Defense |
| Market Capitalization | 70.86 billion USD | 104.61 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | March 13, 1973 | January 2, 1962 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of ITW and LMT by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.
Historical Performance at a Glance
| Symbol | ITW | LMT |
|---|---|---|
| 5-Day Price Return | -0.27% | -6.78% |
| 13-Week Price Return | -4.91% | 6.06% |
| 26-Week Price Return | 1.65% | -4.08% |
| 52-Week Price Return | -10.49% | -18.07% |
| Month-to-Date Return | 0.14% | -8.09% |
| Year-to-Date Return | -3.66% | -6.96% |
| 10-Day Avg. Volume | 1.37M | 1.34M |
| 3-Month Avg. Volume | 1.04M | 1.56M |
| 3-Month Volatility | 19.05% | 17.33% |
| Beta | 1.18 | 0.26 |
Profitability
Return on Equity (TTM)
ITW
93.29%
Machinery Industry
- Max
- 33.68%
- Q3
- 20.05%
- Median
- 12.37%
- Q1
- 8.67%
- Min
- -7.69%
ITW’s Return on Equity of 93.29% is exceptionally high, placing it well beyond the typical range for the Machinery industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
LMT
68.48%
Aerospace & Defense Industry
- Max
- 37.11%
- Q3
- 20.14%
- Median
- 11.72%
- Q1
- 6.30%
- Min
- -6.24%
LMT’s Return on Equity of 68.48% is exceptionally high, placing it well beyond the typical range for the Aerospace & Defense industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
Net Profit Margin (TTM)
ITW
19.05%
Machinery Industry
- Max
- 19.72%
- Q3
- 11.07%
- Median
- 7.62%
- Q1
- 5.05%
- Min
- -1.52%
A Net Profit Margin of 19.05% places ITW in the upper quartile for the Machinery industry, signifying strong profitability and more effective cost management than most of its peers.
LMT
5.73%
Aerospace & Defense Industry
- Max
- 13.66%
- Q3
- 8.61%
- Median
- 6.59%
- Q1
- 4.92%
- Min
- 1.01%
LMT’s Net Profit Margin of 5.73% is aligned with the median group of its peers in the Aerospace & Defense industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
ITW
26.20%
Machinery Industry
- Max
- 26.63%
- Q3
- 15.99%
- Median
- 11.27%
- Q1
- 7.72%
- Min
- -0.51%
An Operating Profit Margin of 26.20% places ITW in the upper quartile for the Machinery industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
LMT
8.31%
Aerospace & Defense Industry
- Max
- 22.35%
- Q3
- 12.83%
- Median
- 9.29%
- Q1
- 6.38%
- Min
- -2.15%
LMT’s Operating Profit Margin of 8.31% is around the midpoint for the Aerospace & Defense industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ITW | LMT |
|---|---|---|
| Return on Equity (TTM) | 93.29% | 68.48% |
| Return on Assets (TTM) | 19.30% | 7.26% |
| Net Profit Margin (TTM) | 19.05% | 5.73% |
| Operating Profit Margin (TTM) | 26.20% | 8.31% |
| Gross Profit Margin (TTM) | 43.93% | 8.25% |
Financial Strength
Current Ratio (MRQ)
ITW
1.53
Machinery Industry
- Max
- 3.13
- Q3
- 2.12
- Median
- 1.72
- Q1
- 1.34
- Min
- 0.77
ITW’s Current Ratio of 1.53 aligns with the median group of the Machinery industry, indicating that its short-term liquidity is in line with its sector peers.
LMT
1.13
Aerospace & Defense Industry
- Max
- 3.35
- Q3
- 2.03
- Median
- 1.24
- Q1
- 1.04
- Min
- 0.77
LMT’s Current Ratio of 1.13 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio (MRQ)
ITW
2.79
Machinery Industry
- Max
- 1.56
- Q3
- 0.79
- Median
- 0.44
- Q1
- 0.27
- Min
- 0.00
With a Debt-to-Equity Ratio of 2.79, ITW operates with exceptionally high leverage compared to the Machinery industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
LMT
3.59
Aerospace & Defense Industry
- Max
- 1.72
- Q3
- 0.96
- Median
- 0.63
- Q1
- 0.37
- Min
- 0.03
With a Debt-to-Equity Ratio of 3.59, LMT operates with exceptionally high leverage compared to the Aerospace & Defense industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio (TTM)
ITW
20.06
Machinery Industry
- Max
- 81.58
- Q3
- 37.68
- Median
- 13.76
- Q1
- 7.97
- Min
- -1.43
ITW’s Interest Coverage Ratio of 20.06 is positioned comfortably within the norm for the Machinery industry, indicating a standard and healthy capacity to cover its interest payments.
LMT
7.49
Aerospace & Defense Industry
- Max
- 36.57
- Q3
- 19.08
- Median
- 7.25
- Q1
- 2.65
- Min
- -7.63
LMT’s Interest Coverage Ratio of 7.49 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | ITW | LMT |
|---|---|---|
| Current Ratio (MRQ) | 1.53 | 1.13 |
| Quick Ratio (MRQ) | 1.01 | 0.97 |
| Debt-to-Equity Ratio (MRQ) | 2.79 | 3.59 |
| Interest Coverage Ratio (TTM) | 20.06 | 7.49 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
ITW
2.50%
Machinery Industry
- Max
- 4.55%
- Q3
- 2.66%
- Median
- 1.90%
- Q1
- 1.23%
- Min
- 0.00%
ITW’s Dividend Yield of 2.50% is consistent with its peers in the Machinery industry, providing a dividend return that is standard for its sector.
LMT
2.99%
Aerospace & Defense Industry
- Max
- 2.72%
- Q3
- 1.45%
- Median
- 0.48%
- Q1
- 0.08%
- Min
- 0.00%
LMT’s Dividend Yield of 2.99% is exceptionally high, placing it well above the typical range for the Aerospace & Defense industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
Dividend Payout Ratio (TTM)
ITW
58.20%
Machinery Industry
- Max
- 198.34%
- Q3
- 101.42%
- Median
- 62.79%
- Q1
- 29.85%
- Min
- 0.00%
ITW’s Dividend Payout Ratio of 58.20% is within the typical range for the Machinery industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
LMT
74.05%
Aerospace & Defense Industry
- Max
- 110.40%
- Q3
- 50.43%
- Median
- 17.11%
- Q1
- 0.46%
- Min
- 0.00%
LMT’s Dividend Payout Ratio of 74.05% is in the upper quartile for the Aerospace & Defense industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | ITW | LMT |
|---|---|---|
| Dividend Yield (TTM) | 2.50% | 2.99% |
| Dividend Payout Ratio (TTM) | 58.20% | 74.05% |
Valuation
Price-to-Earnings Ratio (TTM)
ITW
23.24
Machinery Industry
- Max
- 47.95
- Q3
- 30.11
- Median
- 22.35
- Q1
- 16.56
- Min
- 6.48
ITW’s P/E Ratio of 23.24 is within the middle range for the Machinery industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
LMT
24.77
Aerospace & Defense Industry
- Max
- 67.20
- Q3
- 55.74
- Median
- 33.28
- Q1
- 27.49
- Min
- 15.02
In the lower quartile for the Aerospace & Defense industry, LMT’s P/E Ratio of 24.77 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.
Price-to-Sales Ratio (TTM)
ITW
4.43
Machinery Industry
- Max
- 4.97
- Q3
- 2.76
- Median
- 1.65
- Q1
- 1.04
- Min
- 0.04
ITW’s P/S Ratio of 4.43 is in the upper echelon for the Machinery industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
LMT
1.42
Aerospace & Defense Industry
- Max
- 9.06
- Q3
- 4.87
- Median
- 2.47
- Q1
- 1.61
- Min
- 0.33
In the lower quartile for the Aerospace & Defense industry, LMT’s P/S Ratio of 1.42 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.
Price-to-Book Ratio (MRQ)
ITW
23.69
Machinery Industry
- Max
- 7.29
- Q3
- 4.06
- Median
- 2.67
- Q1
- 1.54
- Min
- 0.52
At 23.69, ITW’s P/B Ratio is at an extreme premium to the Machinery industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
LMT
18.58
Aerospace & Defense Industry
- Max
- 14.90
- Q3
- 8.93
- Median
- 4.70
- Q1
- 3.03
- Min
- 0.83
At 18.58, LMT’s P/B Ratio is at an extreme premium to the Aerospace & Defense industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | ITW | LMT |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 23.24 | 24.77 |
| Price-to-Sales Ratio (TTM) | 4.43 | 1.42 |
| Price-to-Book Ratio (MRQ) | 23.69 | 18.58 |
| Price-to-Free Cash Flow Ratio (TTM) | 24.72 | 21.93 |