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ITW vs ROP
Which Stock Would AI Choose? Illinois Tool Works (ITW) vs. Roper Technologies (ROP) Stock Comparison
Key Takeaways
- ITW is a diversified multi-industrial manufacturer with seven segments, while ROP has evolved into a software-centric technology company following its exit from most industrial operations.
- ITW delivered roughly flat full-year organic revenue in 2025 but expanded margins, whereas ROP posted double-digit revenue growth driven by software and acquisitions.
- Both companies generate strong cash flow and recurring-type revenue, but their growth profiles, margins, and market reactions have diverged in recent quarters.
- ROP experienced a notable post-earnings sell-off on conservative guidance, while ITW's shares have held steadier relative to the broader market.
- The comparison hinges on a trade-off between ITW's margin discipline and ROP's faster, software-led top-line growth.
Introduction
Illinois Tool Works (ITW) and Roper Technologies (ROP) are two highly regarded, cash-generative companies frequently grouped together in quality-focused portfolios. Yet they have followed notably different strategic paths: ITW remains a diversified industrial manufacturer, while Roper has repositioned itself around application and network software. For investors weighing steady industrial execution against software-driven growth, this stock comparison offers a useful lens on relative performance, market positioning, and near-term momentum in the current environment.
ITW Overview and Recent Performance
Illinois Tool Works is a Fortune 300 multi-industrial manufacturer organized around seven segments, including Automotive OEM (original equipment manufacturer), Food Equipment, Test & Measurement and Electronics, Welding, Polymers & Fluids, Construction Products, and Specialty Products. The company leans on its decentralized business model and "customer-backed innovation" (CBI) initiatives to sustain industry-leading margins.
In recent market activity, ITW has delivered steady, if modest, results. Full-year 2025 revenue reached approximately $16 billion, up 0.9%, with organic revenue essentially flat. Fourth-quarter revenue rose 4.1% to about $4.09 billion, and GAAP (Generally Accepted Accounting Principles) earnings per share (EPS) increased 7% to $2.72. Operating margin expanded to 26.5% in the quarter, and full-year operating margin was 26.3%. The company returned roughly $3.3 billion to shareholders in 2025 and extended a dividend-increase streak that now spans more than six decades. For 2026, management guided to EPS of $11.00–$11.40 and 2–4% revenue growth, supported by continued margin expansion and a $1.5 billion share repurchase plan.
ROP Overview and Recent Performance
Roper Technologies is a diversified technology company that has largely transitioned out of industrial businesses and now operates through three segments: Application Software, Network Software & Systems, and Technology Enabled Products. Following the sale of a majority stake in its industrial operations, Roper retains a minority investment in Indicor and focuses on high-margin, recurring-software franchises across healthcare, legal, construction, and freight markets.
Roper's recent results show faster top-line growth but a more turbulent market reaction. Full-year 2025 revenue rose 12% to about $7.9 billion, and fourth-quarter revenue increased 10% to roughly $2.06 billion, with organic growth of 4% and acquisitions contributing 5%. Fourth-quarter adjusted EPS grew 8% to $5.21, and adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin held near 39.7%. However, shares fell sharply in the wake of the report, as 2026 guidance for approximately 8% revenue growth and adjusted EPS of $21.30–$21.55 came in below some analyst expectations. At least one brokerage downgraded the stock and reduced its price target, reflecting caution around software valuations amid the broader AI-focused market environment.
Trending AI Robots
Tickeron's Trending AI Robots page is a curated hub that highlights the platform's most relevant automated trading strategies for current market conditions. While Tickeron hosts hundreds of AI trading bots across thousands of tickers, only a select group earns placement in this section based on factors such as recent performance, consistency, and alignment with prevailing market trends. These bots vary widely in trading style, strategy, timeframe, and the specific set of tickers they monitor, so performance statistics and risk profiles differ from one bot to another. For traders comparing names like ITW and ROP, exploring the Trending AI Robots can offer a data-driven way to observe how automated systems are positioning across this type of stock pairing.
Head-to-Head Comparison
The clearest contrast between these two names is their growth profile. ROP has become a software compounder, with application software now representing more than half of revenue and generating gross margins near 70%. Its model favors acquisition-led expansion and recurring revenue, but it also carries meaningfully higher goodwill and intangible assets, which amplifies exposure to acquisition-related amortization and integration risk. ITW, by comparison, is a slower-growing industrial operator that compensates with exceptional margin discipline and a decentralized, low-capital-intensity structure.
Momentum has also diverged. ROP's shares pulled back notably after its latest report, as forward guidance underwhelmed parts of the analyst community. ITW's shares have held relatively steadier, aided by consistent margin expansion and a conservative but credible 2026 outlook. On risk factors, ITW carries cyclical exposure to automotive, construction, and manufacturing end markets, while ROP's risks center more on software valuation, acquisition integration, and competitive pressure in technology end markets. From a sector standpoint, ITW sits in industrials and ROP in technology, giving the two stocks different sensitivities to economic and interest-rate dynamics.
Tickeron AI Verdict
Based on observable factors such as trend consistency, earnings stability, and relative positioning, Tickeron's AI would likely view ITW as the more stable candidate in the current environment. Its steadier price behavior, consistent margin expansion, and strong free cash flow conversion suggest a more resilient technical and fundamental profile. ROP offers faster growth and a more attractive software franchise, but its sharper post-earnings drawdown and softer near-term guidance introduce greater short-term uncertainty. This assessment is probabilistic rather than definitive, and the preferred name may shift as trend signals and catalyst calendars evolve.
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 disclaimer.
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 ITW is a StrongBuy and ROP is a StrongBuy.
ITW | ROP | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 22 | 53 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 83 Overvalued | 15 Undervalued | |
PROFIT vs RISK RATING 1..100 | 45 | 100 | |
SMR RATING 1..100 | 13 | 61 | |
PRICE GROWTH RATING 1..100 | 54 | 62 | |
P/E GROWTH RATING 1..100 | 32 | 95 | |
SEASONALITY SCORE 1..100 | n/a | 65 |
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.
ROP's Valuation (15) in the Industrial Conglomerates industry is significantly better than the same rating for ITW (83) in the Industrial Machinery industry. This means that ROP’s stock grew significantly faster than ITW’s over the last 12 months.
ITW's Profit vs Risk Rating (45) in the Industrial Machinery industry is somewhat better than the same rating for ROP (100) in the Industrial Conglomerates industry. This means that ITW’s stock grew somewhat faster than ROP’s over the last 12 months.
ITW's SMR Rating (13) in the Industrial Machinery industry is somewhat better than the same rating for ROP (61) in the Industrial Conglomerates industry. This means that ITW’s stock grew somewhat faster than ROP’s over the last 12 months.
ITW's Price Growth Rating (54) in the Industrial Machinery industry is in the same range as ROP (62) in the Industrial Conglomerates industry. This means that ITW’s stock grew similarly to ROP’s over the last 12 months.
ITW's P/E Growth Rating (32) in the Industrial Machinery industry is somewhat better than the same rating for ROP (95) in the Industrial Conglomerates industry. This means that ITW’s stock grew somewhat faster than ROP’s over the last 12 months.
| ITW | ROP | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 54% | 1 day ago 73% |
| Stochastic ODDS (%) | 1 day ago 57% | 1 day ago 48% |
| Momentum ODDS (%) | 1 day ago 46% | 1 day ago 50% |
| MACD ODDS (%) | 1 day ago 43% | 1 day ago 47% |
| TrendWeek ODDS (%) | 1 day ago 46% | 1 day ago 41% |
| TrendMonth ODDS (%) | 1 day ago 48% | 1 day ago 50% |
| Advances ODDS (%) | 1 day ago 52% | N/A |
| Declines ODDS (%) | 6 days ago 41% | 6 days ago 44% |
| BollingerBands ODDS (%) | 1 day ago 53% | 1 day ago 50% |
| Aroon ODDS (%) | 1 day ago 42% | 1 day ago 48% |
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 overvalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
ITW’s FA Score shows that 2 FA rating(s) are green while ROP’s FA Score has 1 green FA rating(s).
- ITW’s FA Score: 2 green, 3 red.
- ROP’s FA Score: 1 green, 4 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.
ITW’s TA Score shows that 4 TA indicator(s) are bullish while ROP’s TA Score has 4 bullish TA indicator(s).
- ITW’s TA Score: 4 bullish, 6 bearish.
- ROP’s TA Score: 4 bullish, 6 bearish.
Price Growth
ITW (@Industrial Machinery) experienced а -2.90% price change this week, while ROP (@Packaged Software) price change was +2.91% for the same time period.
The average weekly price growth across all stocks in the @Industrial Machinery industry was -0.43%. For the same industry, the average monthly price growth was -4.74%, and the average quarterly price growth was -6.82%.
The average weekly price growth across all stocks in the @Packaged Software industry was +1.01%. For the same industry, the average monthly price growth was -5.23%, and the average quarterly price growth was +9.19%.
Reported Earning Dates
ITW is expected to report earnings on Oct 27, 2026.
ROP is expected to report earnings on Oct 22, 2026.
Industries' Descriptions
@Industrial Machinery (-0.43% 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.
@Packaged Software (+1.01% weekly)Packaged software comprises multiple software programs bundled together and sold as a group. For example, Microsoft Office includes multiple applications such as Excel, Word, and PowerPoint. In some cases, buying a bundled product is cheaper than purchasing each item individually[s20] . Microsoft Corporation, Oracle Corp. and Adobe are some major American packaged software makers.
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ITW and
Correlation & Price change
A.I.dvisor indicates that over the last year, ITW has been closely correlated with IR. These tickers have moved in lockstep 74% of the time. This A.I.-generated data suggests there is a high statistical probability that if ITW jumps, then IR could also see price increases.
ROP and
Correlation & Price change
A.I.dvisor indicates that over the last year, ROP has been closely correlated with AME. These tickers have moved in lockstep 75% of the time. This A.I.-generated data suggests there is a high statistical probability that if ROP jumps, then AME could also see price increases.
| Ticker / NAME | Correlation To ROP | 1D Price Change % | ||
|---|---|---|---|---|
| ROP | 100% | +2.56% | ||
| AME - ROP | 75% Closely correlated | -0.00% | ||
| GGG - ROP | 71% Closely correlated | +1.06% | ||
| IEX - ROP | 69% Closely correlated | +0.99% | ||
| OTIS - ROP | 69% Closely correlated | +2.86% | ||
| NDSN - ROP | 68% Closely correlated | +0.27% | ||
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