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ITW vs. PH: Illinois Tool Works vs. Parker-Hannifin Stock Comparison

How do Illinois Tool Works (ITW) and Parker-Hannifin (PH) 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 Parker-Hannifin (PH) 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 Parker-Hannifin (PH)
Profile ItemITWPH
NameIllinois Tool Works Inc.Parker-Hannifin 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 USD115.73 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateMarch 13, 1973March 17, 1980
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

ITW
PH
GSPC
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Illinois Tool Works (ITW) vs. Parker-Hannifin (PH), 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 Parker-Hannifin (PH). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Illinois Tool Works (ITW) and Parker-Hannifin (PH). 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 Parker-Hannifin (PH)
MetricITWPH
Total Return (1Y)20.29%14.13%
Total Return (3Y, Annualized)10.62%33.71%
Total Return (5Y, Annualized)6.67%25.35%

Risk Profile

Drawdown History

ITW
PH
GSPC
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Illinois Tool Works (ITW) vs. Parker-Hannifin (PH), 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 Parker-Hannifin (PH). 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 Parker-Hannifin (PH)
MetricITWPH
Volatility (1Y, Annualized)22.16%27.33%
Beta (5Y)0.911.12
Max Drawdown (5Y)-28.05%-28.64%
Avg. Volume (3M)1.27M627.57K

Risk-Adjusted Performance

Risk-Return Positioning

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ITW and PH 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 Parker-Hannifin (PH)
MetricITWPH
Sharpe Ratio (1Y)0.720.36
Sortino Ratio (1Y)1.120.53

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; Parker-Hannifin (PH) at 24.95% 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%

PH

Capital Goods industry group

24.95%

Max
40.55%
PH
24.95%
Q3
19.29%
Median
12.12%
Q1
4.08%
Min
-17.12%
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Illinois Tool Works (ITW) vs. Parker-Hannifin (PH): 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 Parker-Hannifin (PH) at 16.62% 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%

PH

Capital Goods industry group

16.62%

Max
27.47%
PH
16.62%
Q3
12.10%
Median
6.30%
Q1
1.40%
Min
-12.89%
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Illinois Tool Works (ITW) vs. Parker-Hannifin (PH): 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 Parker-Hannifin (PH) at 21.90% 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%

PH

Capital Goods industry group

21.90%

Max
36.60%
PH
21.90%
Q3
18.33%
Median
11.12%
Q1
5.14%
Min
-12.63%
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Illinois Tool Works (ITW) vs. Parker-Hannifin (PH): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Illinois Tool Works (ITW) and Parker-Hannifin (PH)
MetricITWPH
ROE (TTM)101.65%24.95%
ROA (TTM)17.13%8.56%
Net Margin (TTM)19.39%16.62%
Operating Margin (TTM)28.05%21.90%
Gross Margin (TTM)44.32%37.70%

Growth

Revenue Growth

Parker-Hannifin (PH) at 8.31% 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.

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Illinois Tool Works (ITW) vs. Parker-Hannifin (PH): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Illinois Tool Works (ITW) at -10.42% and Parker-Hannifin (PH) at 5.01% 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. Parker-Hannifin (PH): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Illinois Tool Works (ITW) and Parker-Hannifin (PH)
MetricITWPH
Revenue Growth (YoY)0.92%8.31%
Revenue Growth (3Y CAGR)0.23%4.09%
EPS Growth (YoY)-10.42%5.01%
EPS Growth (3Y CAGR)2.40%21.09%

Financial Strength

Current Ratio (MRQ)

Both Illinois Tool Works (ITW) at 1.29 and Parker-Hannifin (PH) at 0.94 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

PH

Capital Goods industry group

0.94

Max
5.22
Q3
2.95
Median
2.08
Q1
1.43
PH
0.94
Min
0.36
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Illinois Tool Works (ITW) vs. Parker-Hannifin (PH): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Parker-Hannifin (PH) at 1.09 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

PH

Capital Goods industry group

1.09

Max
2.33
Q3
1.12
PH
1.09
Median
0.60
Q1
0.29
Min
0.00
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Illinois Tool Works (ITW) vs. Parker-Hannifin (PH): 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 Parker-Hannifin (PH)
MetricITWPH
Current Ratio (MRQ)1.290.94
Debt / Equity (MRQ)2.981.09
Net Debt / EBITDA1.762.81

Dividends

Dividend Yield (TTM)

Illinois Tool Works (ITW) at 2.29% delivers top-quartile income for its industry, while Parker-Hannifin (PH) at 0.85% pays a more typical yield — both are credible income propositions, ITW the richer one.

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%

PH

Capital Goods industry group

0.85%

Max
2.66%
Q3
1.14%
PH
0.85%
Median
0.24%
Q1
0.00%
Min
0.00%
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Illinois Tool Works (ITW) vs. Parker-Hannifin (PH): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Parker-Hannifin (PH) at 26.11% 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%

PH

Capital Goods industry group

26.11%

Max
67.39%
Q3
28.02%
PH
26.11%
Median
6.86%
Q1
0.00%
Min
0.00%
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Illinois Tool Works (ITW) vs. Parker-Hannifin (PH): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Illinois Tool Works (ITW) and Parker-Hannifin (PH)
MetricITWPH
Dividend Yield (TTM)2.29%0.85%
Dividend Payout Ratio (TTM)58.43%26.11%

Valuation

P/E Ratio (TTM)

Both Illinois Tool Works (ITW) at 25.06 and Parker-Hannifin (PH) at 31.53 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

PH

Capital Goods industry group

31.53

Max
59.38
Q3
35.92
PH
31.53
Median
25.41
Q1
19.47
Min
3.03
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Illinois Tool Works (ITW) vs. Parker-Hannifin (PH): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

Both Illinois Tool Works (ITW) at 4.80 and Parker-Hannifin (PH) at 5.16 command a richer price per dollar of sales than most peers, sitting in the upper P/S ratio quartile of their industries.

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

PH

Capital Goods industry group

5.16

Max
7.54
PH
5.16
Q3
3.76
Median
2.15
Q1
1.03
Min
0.03
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Illinois Tool Works (ITW) vs. Parker-Hannifin (PH): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

Both look rich against book: Parker-Hannifin (PH) at 7.25 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

PH

Capital Goods industry group

7.25

Max
9.66
PH
7.25
Q3
5.00
Median
3.12
Q1
1.81
Min
-1.08
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Illinois Tool Works (ITW) vs. Parker-Hannifin (PH): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Illinois Tool Works (ITW) and Parker-Hannifin (PH)
MetricITWPH
P/E Ratio (TTM)25.0631.53
P/S Ratio (TTM)4.805.16
P/B Ratio (MRQ)25.427.25
Free Cash Flow Yield (TTM)2.89%2.45%