ITW vs. LMT: Illinois Tool Works vs. Lockheed Martin Stock Comparison

November 11, 2026

How do Illinois Tool Works (ITW) and Lockheed Martin (LMT) 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 Lockheed Martin (LMT) both fall under the Capital Goods industry group, but ITW is classified in Machinery while LMT is classified in Aerospace & Defense.

Company profile comparison for Illinois Tool Works (ITW) and Lockheed Martin (LMT)
Profile Item	ITW	LMT
Name	Illinois Tool Works Inc.	Lockheed Martin Corporation
Country/Region	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry Group	Capital Goods	Capital Goods
GICS Industry	Machinery	Aerospace & Defense
GICS Sub-Industry	Industrial Machinery & Supplies & Components	Aerospace & Defense
Market Capitalization	79.85 billion USD	131.00 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	March 13, 1973	January 2, 1962
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

ITW

LMT

GSPC

Illinois Tool Works (ITW) vs. Lockheed Martin (LMT), 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 Lockheed Martin (LMT). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Illinois Tool Works (ITW) and Lockheed Martin (LMT). 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 Lockheed Martin (LMT)
Metric	ITW	LMT
Total Return (1Y)	20.29%	31.17%
Total Return (3Y, Annualized)	10.62%	12.79%
Total Return (5Y, Annualized)	6.67%	14.65%

Risk Profile

Drawdown History

ITW

LMT

GSPC

Illinois Tool Works (ITW) vs. Lockheed Martin (LMT), 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 Lockheed Martin (LMT). 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 Lockheed Martin (LMT)
Metric	ITW	LMT
Volatility (1Y, Annualized)	22.16%	31.09%
Beta (5Y)	0.91	0.10
Max Drawdown (5Y)	-28.05%	-31.79%
Avg. Volume (3M)	1.27M	1.29M

Risk-Adjusted Performance

Risk-Return Positioning

ITW and LMT 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 Lockheed Martin (LMT)
Metric	ITW	LMT
Sharpe Ratio (1Y)	0.72	0.86
Sortino Ratio (1Y)	1.12	1.38

Profitability

ROE (TTM)

Both Illinois Tool Works (ITW) at 101.65% and Lockheed Martin (LMT) at 80.19% 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%

LMT

Capital Goods industry group

80.19%

LMT: 80.19%
Max: 40.55%
Q3: 19.29%
Median: 12.12%
Q1: 4.08%
Min: -17.12%

Illinois Tool Works (ITW) vs. Lockheed Martin (LMT): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

Illinois Tool Works (ITW) at 19.39% retains a top-quartile share of revenue as profit, ahead of Lockheed Martin (LMT) at 8.23%, which keeps about the industry-typical share.

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%

LMT

Capital Goods industry group

8.23%

Max: 27.47%
Q3: 12.10%
LMT: 8.23%
Median: 6.30%
Q1: 1.40%
Min: -12.89%

Illinois Tool Works (ITW) vs. Lockheed Martin (LMT): 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 Lockheed Martin (LMT) at 11.41%, 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%

LMT

Capital Goods industry group

11.41%

Max: 36.60%
Q3: 18.33%
LMT: 11.41%
Median: 11.12%
Q1: 5.14%
Min: -12.63%

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

Profitability Metrics

Profitability metrics for Illinois Tool Works (ITW) and Lockheed Martin (LMT)
Metric	ITW	LMT
ROE (TTM)	101.65%	80.19%
ROA (TTM)	17.13%	8.58%
Net Margin (TTM)	19.39%	8.23%
Operating Margin (TTM)	28.05%	11.41%
Gross Margin (TTM)	44.32%	11.73%

Growth

Revenue Growth

Lockheed Martin (LMT) at 5.64% 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. Lockheed Martin (LMT): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Illinois Tool Works (ITW) at -10.42% and Lockheed Martin (LMT) at -3.68% 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. Lockheed Martin (LMT): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Illinois Tool Works (ITW) and Lockheed Martin (LMT)
Metric	ITW	LMT
Revenue Growth (YoY)	0.92%	5.64%
Revenue Growth (3Y CAGR)	0.23%	4.38%
EPS Growth (YoY)	-10.42%	-3.68%
EPS Growth (3Y CAGR)	2.40%	-0.26%

Financial Strength

Current Ratio (MRQ)

Both Illinois Tool Works (ITW) at 1.29 and Lockheed Martin (LMT) at 1.26 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

LMT

Capital Goods industry group

1.26

Max: 5.22
Q3: 2.95
Median: 2.08
Q1: 1.43
LMT: 1.26
Min: 0.36

Illinois Tool Works (ITW) vs. Lockheed Martin (LMT): 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: Lockheed Martin (LMT) at 2.04 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

LMT

Capital Goods industry group

2.04

Max: 2.33
LMT: 2.04
Q3: 1.12
Median: 0.60
Q1: 0.29
Min: 0.00

Illinois Tool Works (ITW) vs. Lockheed Martin (LMT): 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 Lockheed Martin (LMT)
Metric	ITW	LMT
Current Ratio (MRQ)	1.29	1.26
Debt / Equity (MRQ)	2.98	2.04
Net Debt / EBITDA	1.76	1.47

Dividends

Dividend Yield (TTM)

Both Illinois Tool Works (ITW) at 2.29% and Lockheed Martin (LMT) at 2.40% 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%

LMT

Capital Goods industry group

2.40%

Max: 2.66%
LMT: 2.40%
Q3: 1.14%
Median: 0.24%
Q1: 0.00%
Min: 0.00%

Illinois Tool Works (ITW) vs. Lockheed Martin (LMT): 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 Lockheed Martin (LMT) at 49.01% 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%

LMT

Capital Goods industry group

49.01%

Max: 67.39%
LMT: 49.01%
Q3: 28.02%
Median: 6.86%
Q1: 0.00%
Min: 0.00%

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

Dividend Metrics

Dividend metrics for Illinois Tool Works (ITW) and Lockheed Martin (LMT)
Metric	ITW	LMT
Dividend Yield (TTM)	2.29%	2.40%
Dividend Payout Ratio (TTM)	58.43%	49.01%

Valuation

P/E Ratio (TTM)

Both Illinois Tool Works (ITW) at 25.06 and Lockheed Martin (LMT) at 20.14 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

LMT

Capital Goods industry group

20.14

Max: 59.38
Q3: 35.92
Median: 25.41
LMT: 20.14
Q1: 19.47
Min: 3.03

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

P/S Ratio (TTM)

Lockheed Martin (LMT) at 1.66 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

LMT

Capital Goods industry group

1.66

Max: 7.54
Q3: 3.76
Median: 2.15
LMT: 1.66
Q1: 1.03
Min: 0.03

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

P/B Ratio (MRQ)

Measured against book value, both Illinois Tool Works (ITW) at 25.42 and Lockheed Martin (LMT) at 12.96 look expensive — each P/B ratio sits above its industry’s benchmark 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

LMT

Capital Goods industry group

12.96

LMT: 12.96
Max: 9.66
Q3: 5.00
Median: 3.12
Q1: 1.81
Min: -1.08

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

Valuation Metrics

Valuation metrics for Illinois Tool Works (ITW) and Lockheed Martin (LMT)
Metric	ITW	LMT
P/E Ratio (TTM)	25.06	20.14
P/S Ratio (TTM)	4.80	1.66
P/B Ratio (MRQ)	25.42	12.96
Free Cash Flow Yield (TTM)	2.89%	4.31%