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IEX vs ITW
Which Stock Would AI Choose? IDEX Corporation (IEX) vs. Illinois Tool Works Inc. (ITW) Stock Comparison
Key Takeaways
- IEX has outperformed ITW year-to-date with a 17% gain compared to ITW's 10%, driven by positive momentum in recent market activity.
- ITW boasts higher profitability with a 19% profit margin versus IEX's 14%, alongside a superior return on equity (ROE, a measure of profitability relative to shareholders' equity) exceeding 90%.
- Both stocks are poised for Q1 2026 earnings, with analysts anticipating modest EPS growth for IEX and steady revenue for ITW.
- ITW's larger market cap of $78 billion dwarfs IEX's $15 billion, offering broader diversification across industrial segments.
- Recent dividend hikes signal ITW's confidence, with a 2.4% yield, while IEX provides a 1.4% yield.
- Valuations show ITW at a lower P/E ratio (price-to-earnings, indicating value relative to earnings) of 26 versus IEX's 32.
Introduction
Industrial stocks like IEX and ITW offer exposure to manufacturing and engineered solutions, appealing to investors seeking stability amid economic cycles. This comparison analyzes their business models, recent performance, and market positioning in the current environment of moderating inflation and industrial demand recovery. Traders focused on relative performance and momentum, as well as long-term investors eyeing dividends and growth, will find insights into how these peers stack up, particularly as both approach Q1 earnings in late April 2026. Understanding their contrasts aids in portfolio allocation within the industrials sector.
IEX Overview and Recent Performance
IDEX Corporation (IEX) specializes in fluid and metering technologies, health and science equipment, and fire and safety products, serving niche industrial and life sciences markets. With a market cap of approximately $15.4 billion, the company benefits from steady demand in precision engineering. In recent weeks, IEX shares have climbed around 9% over the past month, reflecting optimism ahead of Q1 2026 earnings expected on April 29, with projected revenue of $835 million and adjusted EPS of $1.78, up slightly year-over-year. Broader YTD gains of 17% outpace the sector, influenced by robust order backlogs and acquisitions like Mott Corporation enhancing its filtration capabilities. Sentiment remains positive, supported by a 4% quarterly revenue growth, though higher P/E ratios signal growth expectations.
ITW Overview and Recent Performance
Illinois Tool Works Inc. (ITW) is a diversified manufacturer spanning welding, automotive, food equipment, and polymers, with a $78 billion market cap providing resilience through segment variety. Recent market activity shows ITW shares stabilizing after a March pullback, with YTD returns at 10% and a 15% one-year gain. Anticipation builds for Q1 2026 earnings on April 30, forecasting $4 billion in revenue and $2.55 EPS. A 7% dividend increase to $1.61 per share underscores operational strength, bolstered by 4% quarterly revenue growth and record free cash flow. Influences include organic growth and cost discipline, fostering a defensive posture amid volatility, with analyst targets around $276.
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Head-to-Head Comparison
While both operate in industrials, IEX focuses on specialized fluid handling and science tech, contrasting ITW's broad diversification across consumer and automotive OEMs, reducing sector-specific risks for ITW. Growth drivers differ: IEX leverages M&A (mergers and acquisitions) and life sciences tailwinds, versus ITW's emphasis on operational efficiency and share repurchases. Recent momentum favors IEX with stronger short-term gains, but ITW exhibits greater stability via higher margins (19% vs. 14%) and free cash flow. Risk factors include IEX's narrower exposure to supply chain disruptions and ITW's elevated debt-to-equity at 286%. Sector-wise, both benefit from infrastructure spending, yet ITW's scale yields better sentiment from dividend reliability. Trade-offs highlight IEX for growth potential versus ITW for income and resilience.
Tickeron AI Verdict
Tickeron's AI currently leans toward ITW based on superior profitability, high ROE, recent dividend growth, and diversified positioning offering trend consistency amid pre-earnings uncertainty. While IEX shows sharper momentum, ITW's catalysts like expected EPS beats and lower valuation suggest higher probability of relative outperformance in the near term.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full Disclaimers and Limitations.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is IEX is a Buy and ITW is a Buy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
IEX’s FA Score shows that 3 FA rating(s) are green whileITW’s FA Score has 2 green FA rating(s).
- IEX’s FA Score: 3 green, 2 red.
- ITW’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
IEX’s TA Score shows that 4 TA indicator(s) are bullish while ITW’s TA Score has 5 bullish TA indicator(s).
- IEX’s TA Score: 4 bullish, 3 bearish.
- ITW’s TA Score: 5 bullish, 5 bearish.
Price Growth
IEX (@Industrial Machinery) experienced а -0.68% price change this week, while ITW (@Industrial Machinery) price change was +0.60% for the same time period.
The average weekly price growth across all stocks in the @Industrial Machinery industry was -2.32%. For the same industry, the average monthly price growth was +2.79%, and the average quarterly price growth was +8.27%.
Reported Earning Dates
IEX is expected to report earnings on Jul 28, 2026.
ITW is expected to report earnings on Aug 04, 2026.
Industries' Descriptions
@Industrial Machinery (-2.32% weekly)The industry makes and maintains machines for consumers, the industry, and most other companies. While it has traditionally been categorized as heavy industry, some smaller companies are also branching into the light category. The industry is pivotal in providing the equipment for production in businesses like agriculture, mining, industry and construction, gas, electricity and water utilities. It also supplies supporting equipment for almost all sectors of the economy, such as equipment for heating, and air conditioning of buildings. Illinois Tool Works Inc., Parker-Hannifin Corporation and Rockwell Automation Inc are some of the major U.S. companies operating in this industry.
| IEX | ITW | IEX / ITW | |
| Capitalization | 16.4B | 75.9B | 22% |
| EBITDA | 940M | 4.74B | 20% |
| Gain YTD | 25.753 | 7.733 | 333% |
| P/E Ratio | 33.34 | 24.63 | 135% |
| Revenue | 3.53B | 16.2B | 22% |
| Total Cash | 586M | 827M | 71% |
| Total Debt | 1.9B | 9.15B | 21% |
IEX | ITW | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 45 | 22 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 26 Undervalued | 20 Undervalued | |
PROFIT vs RISK RATING 1..100 | 87 | 50 | |
SMR RATING 1..100 | 63 | 12 | |
PRICE GROWTH RATING 1..100 | 21 | 51 | |
P/E GROWTH RATING 1..100 | 33 | 38 | |
SEASONALITY SCORE 1..100 | 90 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
ITW's Valuation (20) in the Industrial Machinery industry is in the same range as IEX (26). This means that ITW’s stock grew similarly to IEX’s over the last 12 months.
ITW's Profit vs Risk Rating (50) in the Industrial Machinery industry is somewhat better than the same rating for IEX (87). This means that ITW’s stock grew somewhat faster than IEX’s over the last 12 months.
ITW's SMR Rating (12) in the Industrial Machinery industry is somewhat better than the same rating for IEX (63). This means that ITW’s stock grew somewhat faster than IEX’s over the last 12 months.
IEX's Price Growth Rating (21) in the Industrial Machinery industry is in the same range as ITW (51). This means that IEX’s stock grew similarly to ITW’s over the last 12 months.
IEX's P/E Growth Rating (33) in the Industrial Machinery industry is in the same range as ITW (38). This means that IEX’s stock grew similarly to ITW’s over the last 12 months.
| IEX | ITW | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 58% | 1 day ago 32% |
| Stochastic ODDS (%) | 1 day ago 48% | 1 day ago 46% |
| Momentum ODDS (%) | 1 day ago 48% | 1 day ago 58% |
| MACD ODDS (%) | 1 day ago 61% | 1 day ago 56% |
| TrendWeek ODDS (%) | 1 day ago 55% | 1 day ago 45% |
| TrendMonth ODDS (%) | 1 day ago 50% | 1 day ago 49% |
| Advances ODDS (%) | 4 days ago 49% | 4 days ago 49% |
| Declines ODDS (%) | N/A | 25 days ago 41% |
| BollingerBands ODDS (%) | 1 day ago 55% | 1 day ago 50% |
| Aroon ODDS (%) | 1 day ago 46% | 1 day ago 50% |
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IEX and
Correlation & Price change
A.I.dvisor indicates that over the last year, IEX has been closely correlated with ROP. These tickers have moved in lockstep 69% of the time. This A.I.-generated data suggests there is a high statistical probability that if IEX jumps, then ROP could also see price increases.
ITW and
Correlation & Price change
A.I.dvisor indicates that over the last year, ITW has been closely correlated with AOS. These tickers have moved in lockstep 75% of the time. This A.I.-generated data suggests there is a high statistical probability that if ITW jumps, then AOS could also see price increases.