GGG vs ITW vs ROP

For growth investors, Roper Technologies, Inc.

(ROP) is the stronger pick with 12. 3% revenue growth year-over-year, versus 0. 9% for Illinois Tool Works Inc. (ITW). Roper Technologies, Inc. (ROP) offers the better valuation at 24. 7x trailing P/E (16. 0x forward), making it the more compelling value choice. Analysts rate Roper Technologies, Inc. (ROP) a "Buy" — based on 23 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Roper Technologies, Inc.

(ROP) is the cheapest at 24. 7x versus Graco Inc. at 26. 1x. On forward P/E, Roper Technologies, Inc. is actually cheaper at 16. 0x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Roper Technologies, Inc. wins at 1. 67x versus Graco Inc. 's 2. 59x — a reasonable growth-adjusted valuation.

Over the past 5 years, Illinois Tool Works Inc.

(ITW) delivered a total return of +21. 6%, compared to -18. 3% for Roper Technologies, Inc. (ROP). Over 10 years, the gap is even starker: GGG returned +233. 7% versus ROP's +112. 0%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Roper Technologies, Inc.

(ROP) is the lower-risk stock at 0. 43β versus Graco Inc. 's 0. 80β — meaning GGG is approximately 88% more volatile than ROP relative to the S&P 500. On balance sheet safety, Graco Inc. (GGG) carries a lower debt/equity ratio of 2% versus 3% for Illinois Tool Works Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Roper Technologies, Inc.

(ROP) is pulling ahead at 12. 3% versus 0. 9% for Illinois Tool Works Inc. (ITW). On earnings-per-share growth, the picture is similar: Graco Inc. grew EPS 9. 2% year-over-year, compared to -10. 4% for Illinois Tool Works Inc.. Over a 3-year CAGR, ROP leads at 13. 7% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Graco Inc.

(GGG) is the more profitable company, earning 23. 3% net margin versus 19. 1% for Illinois Tool Works Inc. — meaning it keeps 23. 3% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ROP leads at 28. 3% versus 26. 3% for ITW. At the gross margin level — before operating expenses — ROP leads at 69. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Roper Technologies, Inc. (ROP) is the more undervalued stock at a PEG of 1. 67x versus Graco Inc. 's 2. 59x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Roper Technologies, Inc. (ROP) trades at 16. 0x forward P/E versus 25. 7x for Graco Inc. — 9. 7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ROP: 30. 7% to $457. 64.

All stocks in this comparison pay dividends.

Illinois Tool Works Inc. (ITW) offers the highest yield at 2. 3%, versus 0. 9% for Roper Technologies, Inc. (ROP).

For long-horizon retirement investors, Roper Technologies, Inc.

(ROP) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 43), 0. 9% yield, +112. 0% 10Y return). Both have compounded well over 10 years (ROP: +112. 0%, GGG: +233. 7%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.