ITW vs. WSO: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at ITW and WSO, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | ITW | WSO |
|---|---|---|
| Company Name | Illinois Tool Works Inc. | Watsco, Inc. |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Machinery | Trading Companies & Distributors |
| Market Capitalization | 75.79 billion USD | 16.96 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | March 13, 1973 | June 7, 1984 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of ITW and WSO 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.
Historical Performance at a Glance
| Symbol | ITW | WSO |
|---|---|---|
| 5-Day Price Return | -0.53% | 3.84% |
| 13-Week Price Return | 0.58% | -9.28% |
| 26-Week Price Return | 4.83% | -18.38% |
| 52-Week Price Return | -0.72% | -15.68% |
| Month-to-Date Return | -0.29% | 2.62% |
| Year-to-Date Return | 2.54% | -12.45% |
| 10-Day Avg. Volume | 0.77M | 0.60M |
| 3-Month Avg. Volume | 0.92M | 0.38M |
| 3-Month Volatility | 16.53% | 27.91% |
| Beta | 1.17 | 1.02 |
Profitability
Return on Equity (TTM)
ITW
102.30%
Machinery Industry
- Max
- 33.68%
- Q3
- 20.05%
- Median
- 12.37%
- Q1
- 8.67%
- Min
- -7.69%
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.
WSO
19.73%
Trading Companies & Distributors Industry
- Max
- 32.99%
- Q3
- 19.66%
- Median
- 13.72%
- Q1
- 9.74%
- Min
- -0.34%
In the upper quartile for the Trading Companies & Distributors industry, WSO’s Return on Equity of 19.73% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
ITW
21.31%
Machinery Industry
- Max
- 19.72%
- Q3
- 11.07%
- Median
- 7.62%
- Q1
- 5.05%
- Min
- -1.52%
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.
WSO
7.08%
Trading Companies & Distributors Industry
- Max
- 16.11%
- Q3
- 9.48%
- Median
- 5.89%
- Q1
- 3.68%
- Min
- -1.09%
WSO’s Net Profit Margin of 7.08% is aligned with the median group of its peers in the Trading Companies & Distributors industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin (TTM)
ITW
25.98%
Machinery Industry
- Max
- 26.63%
- Q3
- 15.99%
- Median
- 11.27%
- Q1
- 7.72%
- Min
- -0.51%
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.
WSO
10.26%
Trading Companies & Distributors Industry
- Max
- 26.26%
- Q3
- 14.59%
- Median
- 7.05%
- Q1
- 4.94%
- Min
- -8.06%
WSO’s Operating Profit Margin of 10.26% is around the midpoint for the Trading Companies & Distributors industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | ITW | WSO |
|---|---|---|
| Return on Equity (TTM) | 102.30% | 19.73% |
| Return on Assets (TTM) | 21.57% | 11.69% |
| Net Profit Margin (TTM) | 21.31% | 7.08% |
| Operating Profit Margin (TTM) | 25.98% | 10.26% |
| Gross Profit Margin (TTM) | 43.74% | 27.54% |
Financial Strength
Current Ratio (MRQ)
ITW
1.59
Machinery Industry
- Max
- 3.13
- Q3
- 2.12
- Median
- 1.72
- Q1
- 1.34
- Min
- 0.77
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.
WSO
3.08
Trading Companies & Distributors Industry
- Max
- 3.32
- Q3
- 2.27
- Median
- 1.60
- Q1
- 1.41
- Min
- 0.26
WSO’s Current Ratio of 3.08 is in the upper quartile for the Trading Companies & Distributors industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
Debt-to-Equity Ratio (MRQ)
ITW
2.78
Machinery Industry
- Max
- 1.56
- Q3
- 0.79
- Median
- 0.44
- Q1
- 0.27
- 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.
WSO
0.01
Trading Companies & Distributors Industry
- Max
- 1.93
- Q3
- 1.24
- Median
- 0.79
- Q1
- 0.61
- Min
- 0.01
Falling into the lower quartile for the Trading Companies & Distributors industry, WSO’s Debt-to-Equity Ratio of 0.01 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
Interest Coverage Ratio (TTM)
ITW
20.06
Machinery Industry
- Max
- 81.58
- Q3
- 37.68
- Median
- 13.76
- 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.
WSO
140.00
Trading Companies & Distributors Industry
- Max
- 15.13
- Q3
- 7.93
- Median
- 5.67
- Q1
- 2.04
- Min
- -1.67
With an Interest Coverage Ratio of 140.00, WSO demonstrates a superior capacity to service its debt, placing it well above the typical range for the Trading Companies & Distributors industry. This stems from either robust earnings or a conservative debt load.
Financial Strength at a Glance
| Symbol | ITW | WSO |
|---|---|---|
| Current Ratio (MRQ) | 1.59 | 3.08 |
| Quick Ratio (MRQ) | 1.04 | 1.26 |
| Debt-to-Equity Ratio (MRQ) | 2.78 | 0.01 |
| Interest Coverage Ratio (TTM) | 20.06 | 140.00 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
ITW
2.28%
Machinery Industry
- Max
- 4.55%
- Q3
- 2.66%
- Median
- 1.90%
- Q1
- 1.23%
- Min
- 0.00%
ITW’s Dividend Yield of 2.28% is consistent with its peers in the Machinery industry, providing a dividend return that is standard for its sector.
WSO
2.68%
Trading Companies & Distributors Industry
- Max
- 5.25%
- Q3
- 2.95%
- Median
- 2.06%
- Q1
- 1.11%
- Min
- 0.00%
WSO’s Dividend Yield of 2.68% is consistent with its peers in the Trading Companies & Distributors industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio (TTM)
ITW
51.65%
Machinery Industry
- Max
- 198.34%
- Q3
- 101.42%
- Median
- 62.79%
- Q1
- 29.85%
- 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.
WSO
84.37%
Trading Companies & Distributors Industry
- Max
- 136.12%
- Q3
- 71.34%
- Median
- 47.49%
- Q1
- 22.56%
- Min
- 0.00%
WSO’s Dividend Payout Ratio of 84.37% is in the upper quartile for the Trading Companies & Distributors industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | ITW | WSO |
|---|---|---|
| Dividend Yield (TTM) | 2.28% | 2.68% |
| Dividend Payout Ratio (TTM) | 51.65% | 84.37% |
Valuation
Price-to-Earnings Ratio (TTM)
ITW
22.62
Machinery Industry
- Max
- 47.95
- Q3
- 30.11
- Median
- 22.35
- Q1
- 16.56
- Min
- 6.48
ITW’s P/E Ratio of 22.62 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.
WSO
31.52
Trading Companies & Distributors Industry
- Max
- 42.69
- Q3
- 25.21
- Median
- 16.99
- Q1
- 13.13
- Min
- 5.35
A P/E Ratio of 31.52 places WSO in the upper quartile for the Trading Companies & Distributors industry. This high valuation relative to peers suggests the market holds elevated expectations for the company’s future growth.
Price-to-Sales Ratio (TTM)
ITW
4.82
Machinery Industry
- Max
- 4.97
- Q3
- 2.76
- Median
- 1.65
- Q1
- 1.04
- Min
- 0.04
ITW’s P/S Ratio of 4.82 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.
WSO
2.23
Trading Companies & Distributors Industry
- Max
- 4.90
- Q3
- 2.71
- Median
- 1.06
- Q1
- 0.70
- Min
- 0.30
WSO’s P/S Ratio of 2.23 aligns with the market consensus for the Trading Companies & Distributors industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio (MRQ)
ITW
22.57
Machinery Industry
- Max
- 7.29
- Q3
- 4.06
- Median
- 2.67
- Q1
- 1.54
- Min
- 0.52
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.
WSO
6.47
Trading Companies & Distributors Industry
- Max
- 7.55
- Q3
- 4.63
- Median
- 2.09
- Q1
- 1.30
- Min
- 0.31
WSO’s P/B Ratio of 6.47 is in the upper tier for the Trading Companies & Distributors industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | ITW | WSO |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 22.62 | 31.52 |
| Price-to-Sales Ratio (TTM) | 4.82 | 2.23 |
| Price-to-Book Ratio (MRQ) | 22.57 | 6.47 |
| Price-to-Free Cash Flow Ratio (TTM) | 27.94 | 22.55 |