Illinois Tool Works (NYSE: ITW) and E.I. du Pont de Nemours and (NYSE:DD) are both large-cap industrial products companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, earnings, dividends, institutional ownership, profitability and analyst recommendations.
Volatility and Risk
Illinois Tool Works has a beta of 1.11, suggesting that its stock price is 11% more volatile than the S&P 500. Comparatively, E.I. du Pont de Nemours and has a beta of 1.76, suggesting that its stock price is 76% more volatile than the S&P 500.
This is a breakdown of current ratings for Illinois Tool Works and E.I. du Pont de Nemours and, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Illinois Tool Works||0||6||6||0||2.50|
|E.I. du Pont de Nemours and||0||4||6||0||2.60|
Illinois Tool Works currently has a consensus price target of $152.18, suggesting a potential upside of 9.99%. E.I. du Pont de Nemours and has a consensus price target of $80.19, suggesting a potential downside of 0.96%. Given Illinois Tool Works’ higher probable upside, equities analysts plainly believe Illinois Tool Works is more favorable than E.I. du Pont de Nemours and.
Illinois Tool Works pays an annual dividend of $2.60 per share and has a dividend yield of 1.9%. E.I. du Pont de Nemours and pays an annual dividend of $1.52 per share and has a dividend yield of 1.9%. Illinois Tool Works pays out 42.1% of its earnings in the form of a dividend. E.I. du Pont de Nemours and pays out 59.4% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. E.I. du Pont de Nemours and has raised its dividend for 53 consecutive years. Illinois Tool Works is clearly the better dividend stock, given its higher yield and lower payout ratio.
Insider and Institutional Ownership
74.8% of Illinois Tool Works shares are owned by institutional investors. Comparatively, 71.2% of E.I. du Pont de Nemours and shares are owned by institutional investors. 0.9% of Illinois Tool Works shares are owned by insiders. Comparatively, 0.3% of E.I. du Pont de Nemours and shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.
Earnings & Valuation
This table compares Illinois Tool Works and E.I. du Pont de Nemours and’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Illinois Tool Works||$13.96 billion||3.41||$3.70 billion||$6.18||22.39|
|E.I. du Pont de Nemours and||$25.30 billion||2.78||$5.32 billion||$2.56||31.63|
E.I. du Pont de Nemours and has higher revenue and earnings than Illinois Tool Works. Illinois Tool Works is trading at a lower price-to-earnings ratio than E.I. du Pont de Nemours and, indicating that it is currently the more affordable of the two stocks.
This table compares Illinois Tool Works and E.I. du Pont de Nemours and’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Illinois Tool Works||15.50%||46.57%||13.69%|
|E.I. du Pont de Nemours and||8.86%||31.23%||8.10%|
Illinois Tool Works beats E.I. du Pont de Nemours and on 11 of the 16 factors compared between the two stocks.
About Illinois Tool Works
Illinois Tool Works Inc. is a manufacturer of industrial products and equipment. The Company operates through seven segments. The Automotive OEM segment produces components and fasteners for automotive-related applications. The Food Equipment segment offers commercial food equipment. The Test & Measurement and Electronics segment produces test and measurement, and electronic manufacturing and maintenance, repair and operations (MRO) solutions. The Welding segment produces welding equipment, consumables and accessories for industrial and commercial applications. The Polymers & Fluids segment produces adhesives, sealants, lubrication and cutting fluids, and fluids and polymers for auto aftermarket maintenance and appearance. The Construction Products segment supplies engineered fastening systems and solutions. The Specialty Products segment produces beverage packaging equipment and consumables, product coding and marking equipment and consumables, and appliance components and fasteners.
About E.I. du Pont de Nemours and
E. I. du Pont de Nemours and Company is a science and technology-based company. It operates through six segments: Agriculture, Electronics & Communications (E&C), Industrial Biosciences, Nutrition & Health, Performance Materials and Protection Solutions. Its Agriculture segment includes products, such as corn hybrids and soybean varieties, herbicides, fungicides and insecticides. Its E&C segment includes products, such as printing and packaging materials, photopolymers and electronic materials. Its Industrial Biosciences segment includes products, such as enzymes, bio-based materials and process technologies. Its Nutrition & Health segment includes products, such as probiotics, cultures, emulsifiers, natural sweeteners and soy-based food ingredients. Its Performance Materials segment includes products, such as engineering polymers, packaging and industrial polymers, films and elastomers. Its Protection Solutions segment includes products, such as nonwovens, aramids and solid surfaces.
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