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ITW vs. RTX: Illinois Tool Works vs. RTX Stock Comparison

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

Company profile comparison for Illinois Tool Works (ITW) and RTX (RTX)
Profile ItemITWRTX
NameIllinois Tool Works Inc.RTX Corporation
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryMachineryAerospace & Defense
GICS Sub-IndustryIndustrial Machinery & Supplies & ComponentsAerospace & Defense
Market Capitalization79.85 billion USD255.76 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateMarch 13, 1973April 2, 1962
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

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

Calendar-Year Returns

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Calendar-year total returns for Illinois Tool Works (ITW) and RTX (RTX). 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 RTX (RTX)
MetricITWRTX
Total Return (1Y)20.29%12.51%
Total Return (3Y, Annualized)10.62%36.20%
Total Return (5Y, Annualized)6.67%19.14%

Risk Profile

Drawdown History

ITW
RTX
GSPC
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Illinois Tool Works (ITW) vs. RTX (RTX), 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 RTX (RTX). 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 RTX (RTX)
MetricITWRTX
Volatility (1Y, Annualized)22.16%25.84%
Beta (5Y)0.910.30
Max Drawdown (5Y)-28.05%-32.84%
Avg. Volume (3M)1.27M4.59M

Risk-Adjusted Performance

Risk-Return Positioning

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ITW and RTX 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 RTX (RTX)
MetricITWRTX
Sharpe Ratio (1Y)0.720.32
Sortino Ratio (1Y)1.120.48

Profitability

ROE (TTM)

Illinois Tool Works (ITW) at 101.65% clears its industry range for ROE, a sharper capital-efficiency signal than RTX (RTX) at 12.85%, which is closer to a typical peer reading.

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%

RTX

Capital Goods industry group

12.85%

Max
40.55%
Q3
19.29%
RTX
12.85%
Median
12.12%
Q1
4.08%
Min
-17.12%
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Illinois Tool Works (ITW) vs. RTX (RTX): 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 RTX (RTX) at 8.75%, 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%

RTX

Capital Goods industry group

8.75%

Max
27.47%
Q3
12.10%
RTX
8.75%
Median
6.30%
Q1
1.40%
Min
-12.89%
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Illinois Tool Works (ITW) vs. RTX (RTX): 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 RTX (RTX) at 15.54%, 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%

RTX

Capital Goods industry group

15.54%

Max
36.60%
Q3
18.33%
RTX
15.54%
Median
11.12%
Q1
5.14%
Min
-12.63%
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Illinois Tool Works (ITW) vs. RTX (RTX): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Illinois Tool Works (ITW) and RTX (RTX)
MetricITWRTX
ROE (TTM)101.65%12.85%
ROA (TTM)17.13%4.56%
Net Margin (TTM)19.39%8.75%
Operating Margin (TTM)28.05%15.54%
Gross Margin (TTM)44.32%21.10%

Growth

Revenue Growth

RTX (RTX) at 9.74% 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. RTX (RTX): A comparison of their Revenue Growth across different time periods.

EPS Growth

RTX (RTX) at 39.72% sits in the top EPS growth quartile, while Illinois Tool Works (ITW) at -10.42% is closer to the peer norm — faster per-share earnings growth for RTX.

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

Growth Metrics

Growth metrics for Illinois Tool Works (ITW) and RTX (RTX)
MetricITWRTX
Revenue Growth (YoY)0.92%9.74%
Revenue Growth (3Y CAGR)0.23%9.72%
EPS Growth (YoY)-10.42%39.72%
EPS Growth (3Y CAGR)2.40%12.32%

Financial Strength

Current Ratio (MRQ)

Both Illinois Tool Works (ITW) at 1.29 and RTX (RTX) at 1.05 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

RTX

Capital Goods industry group

1.05

Max
5.22
Q3
2.95
Median
2.08
Q1
1.43
RTX
1.05
Min
0.36
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Illinois Tool Works (ITW) vs. RTX (RTX): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

RTX (RTX) at 0.55 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

RTX

Capital Goods industry group

0.55

Max
2.33
Q3
1.12
Median
0.60
RTX
0.55
Q1
0.29
Min
0.00
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Illinois Tool Works (ITW) vs. RTX (RTX): 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 RTX (RTX)
MetricITWRTX
Current Ratio (MRQ)1.291.05
Debt / Equity (MRQ)2.980.55
Net Debt / EBITDA1.761.75

Dividends

Dividend Yield (TTM)

Both Illinois Tool Works (ITW) at 2.29% and RTX (RTX) at 1.47% 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%

RTX

Capital Goods industry group

1.47%

Max
2.66%
RTX
1.47%
Q3
1.14%
Median
0.24%
Q1
0.00%
Min
0.00%
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Illinois Tool Works (ITW) vs. RTX (RTX): 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 RTX (RTX) at 45.85% 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%

RTX

Capital Goods industry group

45.85%

Max
67.39%
RTX
45.85%
Q3
28.02%
Median
6.86%
Q1
0.00%
Min
0.00%
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Illinois Tool Works (ITW) vs. RTX (RTX): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Illinois Tool Works (ITW) and RTX (RTX)
MetricITWRTX
Dividend Yield (TTM)2.29%1.47%
Dividend Payout Ratio (TTM)58.43%45.85%

Valuation

P/E Ratio (TTM)

Both Illinois Tool Works (ITW) at 25.06 and RTX (RTX) at 30.82 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

RTX

Capital Goods industry group

30.82

Max
59.38
Q3
35.92
RTX
30.82
Median
25.41
Q1
19.47
Min
3.03
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Illinois Tool Works (ITW) vs. RTX (RTX): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

RTX (RTX) at 2.66 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

RTX

Capital Goods industry group

2.66

Max
7.54
Q3
3.76
RTX
2.66
Median
2.15
Q1
1.03
Min
0.03
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Illinois Tool Works (ITW) vs. RTX (RTX): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

RTX (RTX) at 3.69 sits near its industry’s typical P/B ratio, while Illinois Tool Works (ITW) at 25.42 prices above its benchmark range — ITW looks rich relative to book.

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

RTX

Capital Goods industry group

3.69

Max
9.66
Q3
5.00
RTX
3.69
Median
3.12
Q1
1.81
Min
-1.08
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Illinois Tool Works (ITW) vs. RTX (RTX): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Illinois Tool Works (ITW) and RTX (RTX)
MetricITWRTX
P/E Ratio (TTM)25.0630.82
P/S Ratio (TTM)4.802.66
P/B Ratio (MRQ)25.423.69
Free Cash Flow Yield (TTM)2.89%3.25%