ITW vs. WTS: Illinois Tool Works vs. Watts Water Stock Comparison

November 11, 2026

How do Illinois Tool Works (ITW) and Watts Water (WTS) 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 Watts Water (WTS) 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 Watts Water (WTS)
Profile Item	ITW	WTS
Name	Illinois Tool Works Inc.	Watts Water Technologies, Inc. Class A Common Stock
Country/Region	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry Group	Capital Goods	Capital Goods
GICS Industry	Machinery	Machinery
GICS Sub-Industry	Industrial Machinery & Supplies & Components	Industrial Machinery & Supplies & Components
Market Capitalization	79.85 billion USD	11.55 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	March 13, 1973	August 21, 1986
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

ITW

WTS

GSPC

Illinois Tool Works (ITW) vs. Watts Water (WTS), 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 Watts Water (WTS). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Illinois Tool Works (ITW) and Watts Water (WTS). 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 Watts Water (WTS)
Metric	ITW	WTS
Total Return (1Y)	20.29%	33.85%
Total Return (3Y, Annualized)	10.62%	25.59%
Total Return (5Y, Annualized)	6.67%	12.56%

Risk Profile

Drawdown History

ITW

WTS

GSPC

Illinois Tool Works (ITW) vs. Watts Water (WTS), 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 Watts Water (WTS). 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 Watts Water (WTS)
Metric	ITW	WTS
Volatility (1Y, Annualized)	22.16%	27.38%
Beta (5Y)	0.91	1.11
Max Drawdown (5Y)	-28.05%	-44.08%
Avg. Volume (3M)	1.27M	225.08K

Risk-Adjusted Performance

Risk-Return Positioning

ITW and WTS 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 Watts Water (WTS)
Metric	ITW	WTS
Sharpe Ratio (1Y)	0.72	1.08
Sortino Ratio (1Y)	1.12	1.78

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; Watts Water (WTS) at 20.91% 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%

WTS

Capital Goods industry group

20.91%

Max: 40.55%
WTS: 20.91%
Q3: 19.29%
Median: 12.12%
Q1: 4.08%
Min: -17.12%

Illinois Tool Works (ITW) vs. Watts Water (WTS): 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 Watts Water (WTS) 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%

WTS

Capital Goods industry group

16.00%

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

Illinois Tool Works (ITW) vs. Watts Water (WTS): 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 Watts Water (WTS) at 20.85% 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%

WTS

Capital Goods industry group

20.85%

Max: 36.60%
WTS: 20.85%
Q3: 18.33%
Median: 11.12%
Q1: 5.14%
Min: -12.63%

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

Profitability Metrics

Profitability metrics for Illinois Tool Works (ITW) and Watts Water (WTS)
Metric	ITW	WTS
ROE (TTM)	101.65%	20.91%
ROA (TTM)	17.13%	12.05%
Net Margin (TTM)	19.39%	16.00%
Operating Margin (TTM)	28.05%	20.85%
Gross Margin (TTM)	44.32%	49.09%

Growth

Revenue Growth

Watts Water (WTS) at 8.27% 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.

Illinois Tool Works (ITW) vs. Watts Water (WTS): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Illinois Tool Works (ITW) at -10.42% and Watts Water (WTS) at 17.03% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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

Growth Metrics

Growth metrics for Illinois Tool Works (ITW) and Watts Water (WTS)
Metric	ITW	WTS
Revenue Growth (YoY)	0.92%	8.27%
Revenue Growth (3Y CAGR)	0.23%	7.20%
EPS Growth (YoY)	-10.42%	17.03%
EPS Growth (3Y CAGR)	2.40%	10.78%

Financial Strength

Current Ratio (MRQ)

Watts Water (WTS) at 2.80 keeps current ratio within its industry’s typical mid-range, while Illinois Tool Works (ITW) at 1.29 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for ITW.

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

WTS

Capital Goods industry group

2.80

Max: 5.22
Q3: 2.95
WTS: 2.80
Median: 2.08
Q1: 1.43
Min: 0.36

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

Debt / Equity (MRQ)

Watts Water (WTS) at 0.08 keeps leverage in the lower quartile, while Illinois Tool Works (ITW) at 2.98 is above its industry debt-to-equity ratio range.

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

WTS

Capital Goods industry group

0.08

Max: 2.33
Q3: 1.12
Median: 0.60
Q1: 0.29
WTS: 0.08
Min: 0.00

Illinois Tool Works (ITW) vs. Watts Water (WTS): 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 Watts Water (WTS)
Metric	ITW	WTS
Current Ratio (MRQ)	1.29	2.80
Debt / Equity (MRQ)	2.98	0.08
Net Debt / EBITDA	1.76	-0.40

Dividends

Dividend Yield (TTM)

Illinois Tool Works (ITW) at 2.29% delivers top-quartile income for its industry, while Watts Water (WTS) at 0.66% 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%

WTS

Capital Goods industry group

0.66%

Max: 2.66%
Q3: 1.14%
WTS: 0.66%
Median: 0.24%
Q1: 0.00%
Min: 0.00%

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

Dividend Payout Ratio (TTM)

Watts Water (WTS) at 17.24% 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%

WTS

Capital Goods industry group

17.24%

Max: 67.39%
Q3: 28.02%
WTS: 17.24%
Median: 6.86%
Q1: 0.00%
Min: 0.00%

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

Dividend Metrics

Dividend metrics for Illinois Tool Works (ITW) and Watts Water (WTS)
Metric	ITW	WTS
Dividend Yield (TTM)	2.29%	0.66%
Dividend Payout Ratio (TTM)	58.43%	17.24%

Valuation

P/E Ratio (TTM)

Both Illinois Tool Works (ITW) at 25.06 and Watts Water (WTS) at 25.95 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

WTS

Capital Goods industry group

25.95

Max: 59.38
Q3: 35.92
WTS: 25.95
Median: 25.41
Q1: 19.47
Min: 3.03

Illinois Tool Works (ITW) vs. Watts Water (WTS): 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 Watts Water (WTS) at 4.14 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

WTS

Capital Goods industry group

4.14

Max: 7.54
WTS: 4.14
Q3: 3.76
Median: 2.15
Q1: 1.03
Min: 0.03

Illinois Tool Works (ITW) vs. Watts Water (WTS): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

Watts Water (WTS) at 4.98 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

WTS

Capital Goods industry group

4.98

Max: 9.66
Q3: 5.00
WTS: 4.98
Median: 3.12
Q1: 1.81
Min: -1.08

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

Valuation Metrics

Valuation metrics for Illinois Tool Works (ITW) and Watts Water (WTS)
Metric	ITW	WTS
P/E Ratio (TTM)	25.06	25.95
P/S Ratio (TTM)	4.80	4.14
P/B Ratio (MRQ)	25.42	4.98
Free Cash Flow Yield (TTM)	2.89%	2.21%