TNC vs ASTE vs ITW vs CMI vs MLM

For growth investors, Astec Industries, Inc.

(ASTE) is the stronger pick with 8. 1% revenue growth year-over-year, versus -6. 5% for Tennant Company (TNC). Illinois Tool Works Inc. (ITW) offers the better valuation at 24. 4x trailing P/E (22. 7x forward), making it the more compelling value choice. Analysts rate Tennant Company (TNC) a "Buy" — based on 8 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. 4x versus Tennant Company at 36. 9x. On forward P/E, Astec Industries, Inc. is actually cheaper at 14. 2x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Cummins Inc. wins at 2. 30x versus Tennant Company's 3. 20x.

Over the past 5 years, Cummins Inc.

(CMI) delivered a total return of +168. 7%, compared to -20. 4% for Astec Industries, Inc. (ASTE). Over 10 years, the gap is even starker: CMI returned +557. 4% versus ASTE's +22. 1%. 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 Astec Industries, Inc. 's 1. 63β — meaning ASTE is approximately 144% more volatile than ITW relative to the S&P 500. On balance sheet safety, Astec Industries, Inc. (ASTE) carries a lower debt/equity ratio of 47% versus 3% for Illinois Tool Works Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Astec Industries, Inc.

(ASTE) is pulling ahead at 8. 1% versus -6. 5% for Tennant Company (TNC). On earnings-per-share growth, the picture is similar: Astec Industries, Inc. grew EPS 784. 2% year-over-year, compared to -46. 1% for Tennant Company. Over a 3-year CAGR, CMI leads at 6. 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 2. 8% for Astec Industries, Inc. — 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 4. 6% for ASTE. 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, Cummins Inc. (CMI) is the more undervalued stock at a PEG of 2. 30x versus Tennant Company's 3. 20x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Astec Industries, Inc. (ASTE) trades at 14. 2x forward P/E versus 30. 8x for Martin Marietta Materials, Inc. — 16. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TNC: 60. 9% to $140. 00.

All stocks in this comparison pay dividends.

Illinois Tool Works Inc. (ITW) offers the highest yield at 2. 4%, versus 0. 5% for Martin Marietta Materials, Inc. (MLM).

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. 4% yield, +189. 4% 10Y return). Astec Industries, Inc. (ASTE) carries a higher beta of 1. 63 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (ITW: +189. 4%, ASTE: +22. 1%), 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 (TNC (Industrials) and ASTE (Industrials) and ITW (Industrials) and CMI (Industrials) and MLM (Basic Materials)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

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.