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ITW vs. OTIS: Illinois Tool Works vs. Otis Worldwide Stock Comparison

How do Illinois Tool Works (ITW) and Otis Worldwide (OTIS) 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 Otis Worldwide (OTIS) are both classified in the Industrial Machinery & Supplies & Components sub-industry within the broader Machinery industry, placing them in the closest GICS peer bucket.

Illinois Tool Works (ITW) has more than two decades of public-market history since March 13, 1973, whereas Otis Worldwide (OTIS) listed on March 19, 2020 and has a much shorter record to draw on.

Company profile comparison for Illinois Tool Works (ITW) and Otis Worldwide (OTIS)
Profile ItemITWOTIS
NameIllinois Tool Works Inc.Otis Worldwide Corporation
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryMachineryMachinery
GICS Sub-IndustryIndustrial Machinery & Supplies & ComponentsIndustrial Machinery & Supplies & Components
Market Capitalization79.85 billion USD30.06 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateMarch 13, 1973March 19, 2020
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

ITW
OTIS
GSPC
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Illinois Tool Works (ITW) vs. Otis Worldwide (OTIS), 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 Otis Worldwide (OTIS). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Illinois Tool Works (ITW) and Otis Worldwide (OTIS). 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 Otis Worldwide (OTIS)
MetricITWOTIS
Total Return (1Y)20.29%-10.81%
Total Return (3Y, Annualized)10.62%1.33%
Total Return (5Y, Annualized)6.67%0.66%

Risk Profile

Drawdown History

ITW
OTIS
GSPC
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Illinois Tool Works (ITW) vs. Otis Worldwide (OTIS), 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 Otis Worldwide (OTIS). 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 Otis Worldwide (OTIS)
MetricITWOTIS
Volatility (1Y, Annualized)22.16%23.24%
Beta (5Y)0.910.85
Max Drawdown (5Y)-28.05%-37.22%
Avg. Volume (3M)1.27M4.42M

Risk-Adjusted Performance

Risk-Return Positioning

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ITW and OTIS 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 Otis Worldwide (OTIS)
MetricITWOTIS
Sharpe Ratio (1Y)0.72-0.65
Sortino Ratio (1Y)1.12-0.92

Profitability

ROE (TTM)

Capital efficiency shows on one side only: Illinois Tool Works (ITW) earns 101.65% on shareholders’ equity, ranked against its industry; Otis Worldwide (OTIS) has no ROE this period.

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%

OTIS

Capital Goods industry group

--

Max
40.55%
Q3
19.29%
Median
12.12%
Q1
4.08%
Min
-17.12%
OTIS
--
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Illinois Tool Works (ITW) vs. Otis Worldwide (OTIS): OTIS does not report ROE, so it has no value marker; ITW is benchmarked against the Capital Goods industry group.

Net Margin (TTM)

Illinois Tool Works (ITW) at 19.39% retains a top-quartile share of revenue as profit, ahead of Otis Worldwide (OTIS) at 10.28%, 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%

OTIS

Capital Goods industry group

10.28%

Max
27.47%
Q3
12.10%
OTIS
10.28%
Median
6.30%
Q1
1.40%
Min
-12.89%
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Illinois Tool Works (ITW) vs. Otis Worldwide (OTIS): 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 Otis Worldwide (OTIS) at 15.97%, 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%

OTIS

Capital Goods industry group

15.97%

Max
36.60%
Q3
18.33%
OTIS
15.97%
Median
11.12%
Q1
5.14%
Min
-12.63%
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Illinois Tool Works (ITW) vs. Otis Worldwide (OTIS): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Illinois Tool Works (ITW) and Otis Worldwide (OTIS)
MetricITWOTIS
ROE (TTM)101.65%--
ROA (TTM)17.13%13.26%
Net Margin (TTM)19.39%10.28%
Operating Margin (TTM)28.05%15.97%
Gross Margin (TTM)44.32%29.95%

Growth

Revenue Growth

Both Illinois Tool Works (ITW) at 0.92% and Otis Worldwide (OTIS) at 1.19% post bottom-quartile revenue growth versus peers, pointing to weaker demand or pricing momentum than typical rivals.

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Illinois Tool Works (ITW) vs. Otis Worldwide (OTIS): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Illinois Tool Works (ITW) at -10.42% and Otis Worldwide (OTIS) at -14.00% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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Illinois Tool Works (ITW) vs. Otis Worldwide (OTIS): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Illinois Tool Works (ITW) and Otis Worldwide (OTIS)
MetricITWOTIS
Revenue Growth (YoY)0.92%1.19%
Revenue Growth (3Y CAGR)0.23%1.79%
EPS Growth (YoY)-10.42%-14.00%
EPS Growth (3Y CAGR)2.40%5.74%

Financial Strength

Current Ratio (MRQ)

Both Illinois Tool Works (ITW) at 1.29 and Otis Worldwide (OTIS) at 0.86 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

OTIS

Capital Goods industry group

0.86

Max
5.22
Q3
2.95
Median
2.08
Q1
1.43
OTIS
0.86
Min
0.36
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Illinois Tool Works (ITW) vs. Otis Worldwide (OTIS): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Only one side’s leverage can be read here: Illinois Tool Works (ITW) carries debt-to-equity ratio of 2.98 against its industry range, while Otis Worldwide (OTIS) reports no figure this period.

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

OTIS

Capital Goods industry group

--

Max
2.33
Q3
1.12
Median
0.60
Q1
0.29
Min
0.00
OTIS
--
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Illinois Tool Works (ITW) vs. Otis Worldwide (OTIS): OTIS does not report debt-to-equity ratio, so it has no value marker; ITW is benchmarked against the Capital Goods industry group.

Financial Strength Metrics

Financial strength metrics for Illinois Tool Works (ITW) and Otis Worldwide (OTIS)
MetricITWOTIS
Current Ratio (MRQ)1.290.86
Debt / Equity (MRQ)2.98--
Net Debt / EBITDA1.763.12

Dividends

Dividend Yield (TTM)

Both Illinois Tool Works (ITW) at 2.29% and Otis Worldwide (OTIS) at 2.16% 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%

OTIS

Capital Goods industry group

2.16%

Max
2.66%
OTIS
2.16%
Q3
1.14%
Median
0.24%
Q1
0.00%
Min
0.00%
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Illinois Tool Works (ITW) vs. Otis Worldwide (OTIS): 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 Otis Worldwide (OTIS) at 42.79% 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%

OTIS

Capital Goods industry group

42.79%

Max
67.39%
OTIS
42.79%
Q3
28.02%
Median
6.86%
Q1
0.00%
Min
0.00%
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Illinois Tool Works (ITW) vs. Otis Worldwide (OTIS): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Illinois Tool Works (ITW) and Otis Worldwide (OTIS)
MetricITWOTIS
Dividend Yield (TTM)2.29%2.16%
Dividend Payout Ratio (TTM)58.43%42.79%

Valuation

P/E Ratio (TTM)

Both Illinois Tool Works (ITW) at 25.06 and Otis Worldwide (OTIS) at 19.64 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

OTIS

Capital Goods industry group

19.64

Max
59.38
Q3
35.92
Median
25.41
OTIS
19.64
Q1
19.47
Min
3.03
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Illinois Tool Works (ITW) vs. Otis Worldwide (OTIS): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

Otis Worldwide (OTIS) at 1.99 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

OTIS

Capital Goods industry group

1.99

Max
7.54
Q3
3.76
Median
2.15
OTIS
1.99
Q1
1.03
Min
0.03
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Illinois Tool Works (ITW) vs. Otis Worldwide (OTIS): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

Otis Worldwide (OTIS) reports a negative P/B ratio of -5.54, meaning negative book equity — the multiple itself is not meaningful for valuation. Meanwhile Illinois Tool Works (ITW) reports 25.42, ranking against industry peers normally.

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

OTIS

Capital Goods industry group

-5.54

Max
9.66
Q3
5.00
Median
3.12
Q1
1.81
Min
-1.08
OTIS
-5.54
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Illinois Tool Works (ITW) vs. Otis Worldwide (OTIS): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Illinois Tool Works (ITW) and Otis Worldwide (OTIS)
MetricITWOTIS
P/E Ratio (TTM)25.0619.64
P/S Ratio (TTM)4.801.99
P/B Ratio (MRQ)25.42-5.54
Free Cash Flow Yield (TTM)2.89%4.61%