ITW vs. VRT: Illinois Tool Works vs. Vertiv Stock Comparison

November 11, 2026

How do Illinois Tool Works (ITW) and Vertiv (VRT) 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 Vertiv (VRT) both fall under the Capital Goods industry group, but ITW is classified in Machinery while VRT is classified in Electrical Equipment.

Company profile comparison for Illinois Tool Works (ITW) and Vertiv (VRT)
Profile Item	ITW	VRT
Name	Illinois Tool Works Inc.	Vertiv Holdings Co Class A Common Stock
Country/Region	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry Group	Capital Goods	Capital Goods
GICS Industry	Machinery	Electrical Equipment
GICS Sub-Industry	Industrial Machinery & Supplies & Components	Electrical Components & Equipment
Market Capitalization	79.85 billion USD	70.41 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	March 13, 1973	August 2, 2018
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

ITW

VRT

GSPC

Illinois Tool Works (ITW) vs. Vertiv (VRT), 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 Vertiv (VRT). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Illinois Tool Works (ITW) and Vertiv (VRT). 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 Vertiv (VRT)
Metric	ITW	VRT
Total Return (1Y)	20.29%	11.12%
Total Return (3Y, Annualized)	10.62%	71.14%
Total Return (5Y, Annualized)	6.67%	49.38%

Risk Profile

Drawdown History

ITW

VRT

GSPC

Illinois Tool Works (ITW) vs. Vertiv (VRT), 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 Vertiv (VRT). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Vertiv (VRT) carries a highly aggressive beta of 2.15, indicating much higher sensitivity to broad-market moves, whereas Illinois Tool Works (ITW) is closer to market-like at 0.91 — a noticeable difference in market-sensitivity profile.

Risk profile metrics for Illinois Tool Works (ITW) and Vertiv (VRT)
Metric	ITW	VRT
Volatility (1Y, Annualized)	22.16%	71.11%
Beta (5Y)	0.91	2.15
Max Drawdown (5Y)	-28.05%	-69.52%
Avg. Volume (3M)	1.27M	5.90M

Risk-Adjusted Performance

Risk-Return Positioning

ITW and VRT 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 Vertiv (VRT)
Metric	ITW	VRT
Sharpe Ratio (1Y)	0.72	0.10
Sortino Ratio (1Y)	1.12	0.14

Profitability

ROE (TTM)

Both Illinois Tool Works (ITW) at 101.65% and Vertiv (VRT) at 46.57% 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%

VRT

Capital Goods industry group

46.57%

VRT: 46.57%
Max: 40.55%
Q3: 19.29%
Median: 12.12%
Q1: 4.08%
Min: -17.12%

Illinois Tool Works (ITW) vs. Vertiv (VRT): 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 Vertiv (VRT) at 16.00% 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%

VRT

Capital Goods industry group

16.00%

Max: 27.47%
VRT: 16.00%
Q3: 12.10%
Median: 6.30%
Q1: 1.40%
Min: -12.89%

Illinois Tool Works (ITW) vs. Vertiv (VRT): 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 Vertiv (VRT) at 23.77% 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%

VRT

Capital Goods industry group

23.77%

Max: 36.60%
VRT: 23.77%
Q3: 18.33%
Median: 11.12%
Q1: 5.14%
Min: -12.63%

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

Profitability Metrics

Profitability metrics for Illinois Tool Works (ITW) and Vertiv (VRT)
Metric	ITW	VRT
ROE (TTM)	101.65%	46.57%
ROA (TTM)	17.13%	11.94%
Net Margin (TTM)	19.39%	16.00%
Operating Margin (TTM)	28.05%	23.77%
Gross Margin (TTM)	44.32%	38.12%

Growth

Revenue Growth

Vertiv (VRT) at 27.69% sits in the top revenue growth quartile, while Illinois Tool Works (ITW) at 0.92% is in the bottom quartile, showing a clear gap in revenue momentum.

Illinois Tool Works (ITW) vs. Vertiv (VRT): A comparison of their Revenue Growth across different time periods.

EPS Growth

Vertiv (VRT) at 166.41% clears its industry range for EPS growth, a much stronger earnings trajectory than Illinois Tool Works (ITW) at -10.42%, which is closer to a typical peer reading.

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

Growth Metrics

Growth metrics for Illinois Tool Works (ITW) and Vertiv (VRT)
Metric	ITW	VRT
Revenue Growth (YoY)	0.92%	27.69%
Revenue Growth (3Y CAGR)	0.23%	21.59%
EPS Growth (YoY)	-10.42%	166.41%
EPS Growth (3Y CAGR)	2.40%	340.11%

Financial Strength

Current Ratio (MRQ)

Both Illinois Tool Works (ITW) at 1.29 and Vertiv (VRT) at 1.39 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

VRT

Capital Goods industry group

1.39

Max: 5.22
Q3: 2.95
Median: 2.08
Q1: 1.43
VRT: 1.39
Min: 0.36

Illinois Tool Works (ITW) vs. Vertiv (VRT): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Vertiv (VRT) at 0.61 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

VRT

Capital Goods industry group

0.61

Max: 2.33
Q3: 1.12
VRT: 0.61
Median: 0.60
Q1: 0.29
Min: 0.00

Illinois Tool Works (ITW) vs. Vertiv (VRT): 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 Vertiv (VRT)
Metric	ITW	VRT
Current Ratio (MRQ)	1.29	1.39
Debt / Equity (MRQ)	2.98	0.61
Net Debt / EBITDA	1.76	-0.11

Dividends

Dividend Yield (TTM)

Illinois Tool Works (ITW) at 2.29% delivers top-quartile income for its industry, while Vertiv (VRT) at 0.11% 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%

VRT

Capital Goods industry group

0.11%

Max: 2.66%
Q3: 1.14%
Median: 0.24%
VRT: 0.11%
Q1: 0.00%
Min: 0.00%

Illinois Tool Works (ITW) vs. Vertiv (VRT): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Vertiv (VRT) at 4.67% 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%

VRT

Capital Goods industry group

4.67%

Max: 67.39%
Q3: 28.02%
Median: 6.86%
VRT: 4.67%
Q1: 0.00%
Min: 0.00%

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

Dividend Metrics

Dividend metrics for Illinois Tool Works (ITW) and Vertiv (VRT)
Metric	ITW	VRT
Dividend Yield (TTM)	2.29%	0.11%
Dividend Payout Ratio (TTM)	58.43%	4.67%

Valuation

P/E Ratio (TTM)

Both Illinois Tool Works (ITW) at 25.06 and Vertiv (VRT) at 34.18 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

VRT

Capital Goods industry group

34.18

Max: 59.38
Q3: 35.92
VRT: 34.18
Median: 25.41
Q1: 19.47
Min: 3.03

Illinois Tool Works (ITW) vs. Vertiv (VRT): 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 Vertiv (VRT) at 5.37 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

VRT

Capital Goods industry group

5.37

Max: 7.54
VRT: 5.37
Q3: 3.76
Median: 2.15
Q1: 1.03
Min: 0.03

Illinois Tool Works (ITW) vs. Vertiv (VRT): 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 Vertiv (VRT) at 12.80 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

VRT

Capital Goods industry group

12.80

VRT: 12.80
Max: 9.66
Q3: 5.00
Median: 3.12
Q1: 1.81
Min: -1.08

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

Valuation Metrics

Valuation metrics for Illinois Tool Works (ITW) and Vertiv (VRT)
Metric	ITW	VRT
P/E Ratio (TTM)	25.06	34.18
P/S Ratio (TTM)	4.80	5.37
P/B Ratio (MRQ)	25.42	12.80
Free Cash Flow Yield (TTM)	2.89%	4.21%