FTV vs ITW

For growth investors, Illinois Tool Works Inc.

(ITW) is the stronger pick with 0. 9% revenue growth year-over-year, versus -17. 5% for Fortive Corporation (FTV). 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 Fortive Corporation (FTV) a "Hold" — based on 30 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 Fortive Corporation at 34. 7x. On forward P/E, Fortive Corporation is actually cheaper at 20. 4x — notably different from the trailing picture, reflecting expected earnings growth.

Over the past 5 years, Illinois Tool Works Inc.

(ITW) delivered a total return of +21. 6%, compared to +12. 7% for Fortive Corporation (FTV). Over 10 years, the gap is even starker: ITW returned +193. 9% versus FTV's +103. 5%. 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 Fortive Corporation's 0. 83β — meaning FTV is approximately 24% more volatile than ITW relative to the S&P 500. On balance sheet safety, Fortive Corporation (FTV) carries a lower debt/equity ratio of 50% versus 3% for Illinois Tool Works Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Illinois Tool Works Inc.

(ITW) is pulling ahead at 0. 9% versus -17. 5% for Fortive Corporation (FTV). On earnings-per-share growth, the picture is similar: Illinois Tool Works Inc. grew EPS -10. 4% year-over-year, compared to -26. 3% for Fortive Corporation. Over a 3-year CAGR, ITW leads at 0. 2% 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.

Illinois Tool Works Inc.

(ITW) is the more profitable company, earning 19. 1% net margin versus 11. 3% for Fortive Corporation — meaning it keeps 19. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ITW leads at 26. 3% versus 17. 7% for FTV. At the gross margin level — before operating expenses — FTV leads at 61. 0%, 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.

On forward earnings alone, Fortive Corporation (FTV) trades at 20.

4x forward P/E versus 23. 1x for Illinois Tool Works Inc. — 2. 7x 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 Fortive Corporation (FTV).

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%, FTV: +103. 5%), 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.

These companies operate in different sectors (FTV (Technology) and ITW (Industrials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

ITW pays a dividend while FTV does not, making them suitable for different income and tax situations. 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.