ITW vs. XYL: Illinois Tool Works vs. Xylem Stock Comparison

November 11, 2026

How do Illinois Tool Works (ITW) and Xylem (XYL) 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 Xylem (XYL) 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 Xylem (XYL)
Profile Item	ITW	XYL
Name	Illinois Tool Works Inc.	Xylem Inc.
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	22.44 billion USD
Currency	USD	USD
Exchange	NYSE	NYSE
Listing Date	March 13, 1973	October 13, 2011
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

ITW

XYL

GSPC

Illinois Tool Works (ITW) vs. Xylem (XYL), 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 Xylem (XYL). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Illinois Tool Works (ITW) and Xylem (XYL). 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 Xylem (XYL)
Metric	ITW	XYL
Total Return (1Y)	20.29%	-33.10%
Total Return (3Y, Annualized)	10.62%	2.29%
Total Return (5Y, Annualized)	6.67%	-4.47%

Risk Profile

Drawdown History

ITW

XYL

GSPC

Illinois Tool Works (ITW) vs. Xylem (XYL), 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 Xylem (XYL). 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 Xylem (XYL)
Metric	ITW	XYL
Volatility (1Y, Annualized)	22.16%	30.74%
Beta (5Y)	0.91	0.96
Max Drawdown (5Y)	-28.05%	-44.89%
Avg. Volume (3M)	1.27M	2.60M

Risk-Adjusted Performance

Risk-Return Positioning

ITW and XYL 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 Xylem (XYL)
Metric	ITW	XYL
Sharpe Ratio (1Y)	0.72	-1.22
Sortino Ratio (1Y)	1.12	-1.48

Profitability

ROE (TTM)

Illinois Tool Works (ITW) at 101.65% clears its industry range for ROE, a sharper capital-efficiency signal than Xylem (XYL) at 9.76%, 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%

XYL

Capital Goods industry group

9.76%

Max: 40.55%
Q3: 19.29%
Median: 12.12%
XYL: 9.76%
Q1: 4.08%
Min: -17.12%

Illinois Tool Works (ITW) vs. Xylem (XYL): 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 Xylem (XYL) at 11.94%, 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%

XYL

Capital Goods industry group

11.94%

Max: 27.47%
Q3: 12.10%
XYL: 11.94%
Median: 6.30%
Q1: 1.40%
Min: -12.89%

Illinois Tool Works (ITW) vs. Xylem (XYL): 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 Xylem (XYL) at 15.95%, 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%

XYL

Capital Goods industry group

15.95%

Max: 36.60%
Q3: 18.33%
XYL: 15.95%
Median: 11.12%
Q1: 5.14%
Min: -12.63%

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

Profitability Metrics

Profitability metrics for Illinois Tool Works (ITW) and Xylem (XYL)
Metric	ITW	XYL
ROE (TTM)	101.65%	9.76%
ROA (TTM)	17.13%	5.07%
Net Margin (TTM)	19.39%	11.94%
Operating Margin (TTM)	28.05%	15.95%
Gross Margin (TTM)	44.32%	39.32%

Growth

Revenue Growth

Xylem (XYL) at 5.52% 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. Xylem (XYL): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Illinois Tool Works (ITW) at -10.42% and Xylem (XYL) at 7.40% 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. Xylem (XYL): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Illinois Tool Works (ITW) and Xylem (XYL)
Metric	ITW	XYL
Revenue Growth (YoY)	0.92%	5.52%
Revenue Growth (3Y CAGR)	0.23%	17.84%
EPS Growth (YoY)	-10.42%	7.40%
EPS Growth (3Y CAGR)	2.40%	25.99%

Financial Strength

Current Ratio (MRQ)

Both Illinois Tool Works (ITW) at 1.29 and Xylem (XYL) 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

XYL

Capital Goods industry group

1.39

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

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

Debt / Equity (MRQ)

Xylem (XYL) at 0.29 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

XYL

Capital Goods industry group

0.29

Max: 2.33
Q3: 1.12
Median: 0.60
XYL: 0.29
Q1: 0.29
Min: 0.00

Illinois Tool Works (ITW) vs. Xylem (XYL): 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 Xylem (XYL)
Metric	ITW	XYL
Current Ratio (MRQ)	1.29	1.39
Debt / Equity (MRQ)	2.98	0.29
Net Debt / EBITDA	1.76	1.18

Dividends

Dividend Yield (TTM)

Both Illinois Tool Works (ITW) at 2.29% and Xylem (XYL) at 1.69% 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%

XYL

Capital Goods industry group

1.69%

Max: 2.66%
XYL: 1.69%
Q3: 1.14%
Median: 0.24%
Q1: 0.00%
Min: 0.00%

Illinois Tool Works (ITW) vs. Xylem (XYL): 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 Xylem (XYL) at 37.47% 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%

XYL

Capital Goods industry group

37.47%

Max: 67.39%
XYL: 37.47%
Q3: 28.02%
Median: 6.86%
Q1: 0.00%
Min: 0.00%

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

Dividend Metrics

Dividend metrics for Illinois Tool Works (ITW) and Xylem (XYL)
Metric	ITW	XYL
Dividend Yield (TTM)	2.29%	1.69%
Dividend Payout Ratio (TTM)	58.43%	37.47%

Valuation

P/E Ratio (TTM)

Both Illinois Tool Works (ITW) at 25.06 and Xylem (XYL) at 21.69 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

XYL

Capital Goods industry group

21.69

Max: 59.38
Q3: 35.92
Median: 25.41
XYL: 21.69
Q1: 19.47
Min: 3.03

Illinois Tool Works (ITW) vs. Xylem (XYL): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

Xylem (XYL) at 2.48 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

XYL

Capital Goods industry group

2.48

Max: 7.54
Q3: 3.76
XYL: 2.48
Median: 2.15
Q1: 1.03
Min: 0.03

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

P/B Ratio (MRQ)

Xylem (XYL) at 2.19 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

XYL

Capital Goods industry group

2.19

Max: 9.66
Q3: 5.00
Median: 3.12
XYL: 2.19
Q1: 1.81
Min: -1.08

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

Valuation Metrics

Valuation metrics for Illinois Tool Works (ITW) and Xylem (XYL)
Metric	ITW	XYL
P/E Ratio (TTM)	25.06	21.69
P/S Ratio (TTM)	4.80	2.48
P/B Ratio (MRQ)	25.42	2.19
Free Cash Flow Yield (TTM)	2.89%	5.39%