AME vs ITW

For growth investors, AMETEK, Inc.

(AME) is the stronger pick with 6. 6% revenue growth year-over-year, versus 0. 9% for Illinois Tool Works Inc. (ITW). Illinois Tool Works Inc. (ITW) offers the better valuation at 24. 8x trailing P/E (23. 1x forward), making it the more compelling value choice. Analysts rate AMETEK, Inc. (AME) a "Buy" — based on 29 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, Illinois Tool Works Inc.

(ITW) is the cheapest at 24. 8x versus AMETEK, Inc. at 37. 7x. On forward P/E, Illinois Tool Works Inc. is actually cheaper at 23. 1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Illinois Tool Works Inc. wins at 2. 41x versus AMETEK, Inc. 's 2. 68x.

Over the past 5 years, AMETEK, Inc.

(AME) delivered a total return of +81. 5%, compared to +21. 6% for Illinois Tool Works Inc. (ITW). Over 10 years, the gap is even starker: AME returned +433. 2% versus ITW's +193. 9%. 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), Illinois Tool Works Inc.

(ITW) is the lower-risk stock at 0. 67β versus AMETEK, Inc. 's 0. 93β — meaning AME is approximately 39% more volatile than ITW relative to the S&P 500. On balance sheet safety, AMETEK, Inc. (AME) carries a lower debt/equity ratio of 21% versus 3% for Illinois Tool Works Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), AMETEK, Inc.

(AME) is pulling ahead at 6. 6% versus 0. 9% for Illinois Tool Works Inc. (ITW). On earnings-per-share growth, the picture is similar: AMETEK, Inc. grew EPS 7. 9% year-over-year, compared to -10. 4% for Illinois Tool Works Inc.. Over a 3-year CAGR, AME leads at 6. 4% 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.

AMETEK, Inc.

(AME) is the more profitable company, earning 20. 0% net margin versus 19. 1% for Illinois Tool Works Inc. — meaning it keeps 20. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ITW leads at 26. 3% versus 26. 2% for AME. At the gross margin level — before operating expenses — ITW leads at 44. 1%, 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, Illinois Tool Works Inc. (ITW) is the more undervalued stock at a PEG of 2. 41x versus AMETEK, Inc. 's 2. 68x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Illinois Tool Works Inc. (ITW) trades at 23. 1x forward P/E versus 29. 9x for AMETEK, Inc. — 6. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ITW: 5. 0% to $273. 67.

All stocks in this comparison pay dividends.

Illinois Tool Works Inc. (ITW) offers the highest yield at 2. 3%, versus 0. 5% for AMETEK, Inc. (AME).

For long-horizon retirement investors, Illinois Tool Works Inc.

(ITW) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 67), 2. 3% yield, +193. 9% 10Y return). Both have compounded well over 10 years (ITW: +193. 9%, AME: +433. 2%), 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.