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ITW vs. VRT: A Head-to-Head Stock Comparison

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Here’s a clear look at ITW and VRT, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolITWVRT
Company NameIllinois Tool Works Inc.Vertiv Holdings Co
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryMachineryElectrical Equipment
Market Capitalization77.92 billion USD52.47 billion USD
ExchangeNYSENYSE
Listing DateMarch 13, 1973August 2, 2018
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of ITW and VRT 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.

ITW vs. VRT: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolITWVRT
5-Day Price Return4.10%-1.43%
13-Week Price Return6.80%35.97%
26-Week Price Return4.79%14.92%
52-Week Price Return12.97%88.37%
Month-to-Date Return4.43%-5.63%
Year-to-Date Return5.43%20.94%
10-Day Avg. Volume0.98M6.72M
3-Month Avg. Volume1.10M8.39M
3-Month Volatility18.39%42.29%
Beta1.141.86

Profitability

Return on Equity (TTM)

ITW

102.30%

Machinery Industry

Max
34.68%
Q3
19.06%
Median
13.13%
Q1
8.53%
Min
-4.87%

ITW’s Return on Equity of 102.30% 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.

VRT

32.36%

Electrical Equipment Industry

Max
37.56%
Q3
20.60%
Median
14.38%
Q1
4.35%
Min
0.90%

In the upper quartile for the Electrical Equipment industry, VRT’s Return on Equity of 32.36% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.

ITW vs. VRT: A comparison of their Return on Equity (TTM) against their respective Machinery and Electrical Equipment industry benchmarks.

Net Profit Margin (TTM)

ITW

21.31%

Machinery Industry

Max
19.74%
Q3
11.24%
Median
8.13%
Q1
5.38%
Min
-1.11%

ITW’s Net Profit Margin of 21.31% is exceptionally high, placing it well beyond the typical range for the Machinery industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.

VRT

8.93%

Electrical Equipment Industry

Max
20.43%
Q3
10.97%
Median
6.07%
Q1
3.16%
Min
0.29%

VRT’s Net Profit Margin of 8.93% is aligned with the median group of its peers in the Electrical Equipment industry. This indicates its ability to convert revenue into profit is typical for the sector.

ITW vs. VRT: A comparison of their Net Profit Margin (TTM) against their respective Machinery and Electrical Equipment industry benchmarks.

Operating Profit Margin (TTM)

ITW

25.98%

Machinery Industry

Max
26.63%
Q3
16.15%
Median
11.27%
Q1
7.72%
Min
-4.91%

An Operating Profit Margin of 25.98% 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.

VRT

13.20%

Electrical Equipment Industry

Max
26.20%
Q3
14.31%
Median
7.54%
Q1
3.77%
Min
-5.64%

VRT’s Operating Profit Margin of 13.20% is around the midpoint for the Electrical Equipment industry, indicating that its efficiency in managing core business operations is typical for the sector.

ITW vs. VRT: A comparison of their Operating Profit Margin (TTM) against their respective Machinery and Electrical Equipment industry benchmarks.

Profitability at a Glance

SymbolITWVRT
Return on Equity (TTM)102.30%32.36%
Return on Assets (TTM)21.57%8.58%
Net Profit Margin (TTM)21.31%8.93%
Operating Profit Margin (TTM)25.98%13.20%
Gross Profit Margin (TTM)43.74%35.29%

Financial Strength

Current Ratio (MRQ)

ITW

1.59

Machinery Industry

Max
3.83
Q3
2.32
Median
1.72
Q1
1.28
Min
0.78

ITW’s Current Ratio of 1.59 aligns with the median group of the Machinery industry, indicating that its short-term liquidity is in line with its sector peers.

VRT

1.74

Electrical Equipment Industry

Max
3.02
Q3
1.99
Median
1.41
Q1
1.07
Min
0.80

VRT’s Current Ratio of 1.74 aligns with the median group of the Electrical Equipment industry, indicating that its short-term liquidity is in line with its sector peers.

ITW vs. VRT: A comparison of their Current Ratio (MRQ) against their respective Machinery and Electrical Equipment industry benchmarks.

Debt-to-Equity Ratio (MRQ)

ITW

2.78

Machinery Industry

Max
1.49
Q3
0.75
Median
0.44
Q1
0.26
Min
0.00

With a Debt-to-Equity Ratio of 2.78, 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.

VRT

0.93

Electrical Equipment Industry

Max
1.44
Q3
0.99
Median
0.56
Q1
0.24
Min
0.00

VRT’s Debt-to-Equity Ratio of 0.93 is typical for the Electrical Equipment industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

ITW vs. VRT: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Machinery and Electrical Equipment industry benchmarks.

Interest Coverage Ratio (TTM)

ITW

20.06

Machinery Industry

Max
67.55
Q3
33.79
Median
13.87
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.

VRT

2.36

Electrical Equipment Industry

Max
36.12
Q3
19.29
Median
9.38
Q1
1.16
Min
-10.92

VRT’s Interest Coverage Ratio of 2.36 is positioned comfortably within the norm for the Electrical Equipment industry, indicating a standard and healthy capacity to cover its interest payments.

ITW vs. VRT: A comparison of their Interest Coverage Ratio (TTM) against their respective Machinery and Electrical Equipment industry benchmarks.

Financial Strength at a Glance

SymbolITWVRT
Current Ratio (MRQ)1.591.74
Quick Ratio (MRQ)1.041.35
Debt-to-Equity Ratio (MRQ)2.780.93
Interest Coverage Ratio (TTM)20.062.36

Growth

Revenue Growth

ITW vs. VRT: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

ITW vs. VRT: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

ITW

2.25%

Machinery Industry

Max
5.32%
Q3
2.84%
Median
1.87%
Q1
1.09%
Min
0.00%

ITW’s Dividend Yield of 2.25% is consistent with its peers in the Machinery industry, providing a dividend return that is standard for its sector.

VRT

0.10%

Electrical Equipment Industry

Max
2.20%
Q3
1.53%
Median
1.01%
Q1
0.00%
Min
0.00%

VRT’s Dividend Yield of 0.10% is consistent with its peers in the Electrical Equipment industry, providing a dividend return that is standard for its sector.

ITW vs. VRT: A comparison of their Dividend Yield (TTM) against their respective Machinery and Electrical Equipment industry benchmarks.

Dividend Payout Ratio (TTM)

ITW

51.65%

Machinery Industry

Max
202.17%
Q3
98.65%
Median
55.54%
Q1
29.03%
Min
0.00%

ITW’s Dividend Payout Ratio of 51.65% is within the typical range for the Machinery industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

VRT

6.39%

Electrical Equipment Industry

Max
119.44%
Q3
51.87%
Median
27.71%
Q1
0.00%
Min
0.00%

VRT’s Dividend Payout Ratio of 6.39% is within the typical range for the Electrical Equipment industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ITW vs. VRT: A comparison of their Dividend Payout Ratio (TTM) against their respective Machinery and Electrical Equipment industry benchmarks.

Dividend at a Glance

SymbolITWVRT
Dividend Yield (TTM)2.25%0.10%
Dividend Payout Ratio (TTM)51.65%6.39%

Valuation

Price-to-Earnings Ratio (TTM)

ITW

23.00

Machinery Industry

Max
53.66
Q3
31.29
Median
22.00
Q1
16.18
Min
7.00

ITW’s P/E Ratio of 23.00 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.

VRT

66.31

Electrical Equipment Industry

Max
81.85
Q3
44.17
Median
27.61
Q1
18.62
Min
7.73

A P/E Ratio of 66.31 places VRT in the upper quartile for the Electrical Equipment industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.

ITW vs. VRT: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Machinery and Electrical Equipment industry benchmarks.

Price-to-Sales Ratio (TTM)

ITW

4.90

Machinery Industry

Max
5.04
Q3
2.72
Median
1.67
Q1
1.04
Min
0.24

ITW’s P/S Ratio of 4.90 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.

VRT

5.92

Electrical Equipment Industry

Max
8.18
Q3
4.02
Median
1.84
Q1
0.97
Min
0.44

VRT’s P/S Ratio of 5.92 is in the upper echelon for the Electrical Equipment 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.

ITW vs. VRT: A comparison of their Price-to-Sales Ratio (TTM) against their respective Machinery and Electrical Equipment industry benchmarks.

Price-to-Book Ratio (MRQ)

ITW

22.57

Machinery Industry

Max
7.23
Q3
3.90
Median
2.52
Q1
1.47
Min
0.49

At 22.57, 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.

VRT

15.66

Electrical Equipment Industry

Max
8.50
Q3
4.53
Median
3.39
Q1
1.70
Min
0.51

At 15.66, VRT’s P/B Ratio is at an extreme premium to the Electrical Equipment 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.

ITW vs. VRT: A comparison of their Price-to-Book Ratio (MRQ) against their respective Machinery and Electrical Equipment industry benchmarks.

Valuation at a Glance

SymbolITWVRT
Price-to-Earnings Ratio (TTM)23.0066.31
Price-to-Sales Ratio (TTM)4.905.92
Price-to-Book Ratio (MRQ)22.5715.66
Price-to-Free Cash Flow Ratio (TTM)28.4143.36