Advertisement
ITW vs ROP
Which Stock Would AI Choose? Illinois Tool Works (ITW) vs. Roper Technologies (ROP) Stock Comparison
Key Takeaways
- ITW is a diversified industrial manufacturer, while ROP is a software- and technology-focused holding company, giving the two names very different growth and margin profiles.
- ITW recently delivered its most profitable quarter on record and raised full-year guidance, driven by strength in capital-expenditure-related segments.
- ROP has posted accelerating organic growth and is monetizing AI-enabled products across much of its software portfolio.
- Relative performance differs by sector: ITW is tied to industrial and manufacturing cycles, while ROP leans on recurring software revenue and acquisition-driven compounding.
- Valuation and capital-allocation strategies diverge, with ITW emphasizing buybacks and dividends and ROP reinvesting heavily in acquisitions.
- Both companies carry strong balance sheets, but their risk profiles reflect different exposure to cyclical demand versus software integration risk.
- Explore more context on each name through the ITW Major News and ITW Today's Price Move pages, as well as the ROP Major News and ROP Today's Price Move pages.
- For additional insight, explore Trending AI Robots to see how AI-powered strategies currently view these and other tickers.
Introduction
Investors comparing ITW (Illinois Tool Works) and ROP (Roper Technologies) are weighing two structurally different blue chips. ITW is a diversified industrial manufacturer spanning automotive, food equipment, welding, and construction products, while ROP is a diversified technology company built around vertical software and technology-enabled products. This comparison is relevant for traders and investors seeking to understand how relative performance, market positioning, and growth drivers differ between a cyclical industrial name and an asset-light software compounder. Both are S&P 500 constituents with long track records, making them useful reference points for evaluating sector rotation and quality-focused strategies in the current market environment.
ITW Overview and Recent Performance
Illinois Tool Works (ITW) is a global manufacturer of engineered industrial products and equipment, operating across seven segments including Automotive OEM, Food Equipment, Test & Measurement and Electronics, Welding, Polymers & Fluids, Construction Products, and Specialty Products. The company is known for its "80/20" operational discipline and enterprise initiatives aimed at expanding operating margins.
In recent weeks, ITW has reported strong results, with revenue growth of roughly 6% year over year and organic growth accelerating into the mid-single digits. Management highlighted momentum in capital-expenditure (CapEx)-related segments such as Welding and Test & Measurement and Electronics, while consumer-facing businesses remained comparatively softer. The company raised its full-year earnings-per-share (EPS) guidance and delivered what it described as its most profitable quarter on record. Operating margins have held near the high end of its targeted range, supported by enterprise initiatives and customer-back innovation. Share repurchases and a steady dividend remain central to its capital-return framework.
ROP Overview and Recent Performance
Roper Technologies (ROP) is a diversified technology company that owns a portfolio of vertical software and technology-enabled product businesses serving niche, mission-critical markets in healthcare, insurance, legal, education, and industrial sectors. The company uses disciplined, process-driven capital allocation to acquire high-margin businesses and compound cash flow.
In recent weeks, ROP has reported accelerating organic growth, with revenue up around 8% year over year and organic growth near 7%. Software recurring revenue grew at a solid clip, and gross retention remained in the mid-90% range. Management raised and tightened full-year diluted earnings-per-share (DEPS) guidance and completed several bolt-on acquisitions. A key theme has been early AI monetization, with a large majority of its software businesses now offering agent-based solutions. Analysts responded with several price-target increases following the results, reflecting improved sentiment around organic growth and capital deployment.
Trending AI Robots
Tickeron maintains hundreds of AI Trading Bots that collectively trade thousands of different tickers, each with its own trading style, strategy, timeframe, performance record, and set of underlying securities. Because market conditions are always shifting, only a curated selection of the strongest and most suitable bots earns a place in the Trending AI Robots section. This shortlist is designed to surface strategies that are currently well-aligned with prevailing market dynamics, helping traders evaluate quantitative approaches across momentum, trend-following, and other styles. Bots vary widely in their statistics, from win rates and trade frequency to drawdown characteristics, so reviewing the available metrics can help users match a bot to their own objectives. Explore the Trending AI Robots page to see which strategies are leading the current ranking.
Head-to-Head Comparison
The most fundamental contrast between ITW and ROP is their business model. ITW is a manufacturing-led industrial with a focus on operational efficiency, margin expansion, and capital returns. Its performance is closely tied to industrial demand, short-cycle orders, and the health of end markets such as automotive and construction. ROP, by contrast, is an acquisition-driven software compounder whose growth depends on recurring revenue, retention, and successful integration of bolt-on deals.
On growth drivers, ITW is leveraging customer-back innovation and CapEx-linked segments, while ROP is increasingly monetizing AI capabilities embedded in its existing software. Risk factors also differ: ITW faces cyclicality, input-cost pressure, and tariff-related pricing lags, whereas ROP faces acquisition-integration risk and a premium valuation that can derate if acquired businesses underperform. From a sector-exposure standpoint, ITW is a diversified industrial, while ROP is classified as a technology/software company, meaning the two names often respond differently to macro and sentiment shifts.
Tickeron AI Verdict
Based on observable factors such as trend consistency, stability, catalysts, and relative positioning, Tickeron's AI would likely lean toward ROP in the current environment. The company's accelerating organic growth, high-margin recurring software revenue, tangible AI monetization, and improving analyst sentiment point to a more durable and currently reinforced trend. That said, ITW presents a compelling case through record profitability, margin discipline, and reliable capital returns. The relative preference should be read as probabilistic rather than definitive, reflecting the stronger recent momentum and catalyst set evident in ROP rather than any absolute weakness in ITW.
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 Hold and ROP is a StrongBuy.
Momentum Indicator for ITW turns positive, indicating new upward trend
ITW saw its Momentum Indicator move above the 0 level on October 13, 2026. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 90 similar instances where the indicator turned positive. In 58 of the 90 cases, the stock moved higher in the following days. The odds of a move higher are at 64%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where ITW's RSI Oscillator exited the oversold zone, 11 of 24 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 46%.
The Moving Average Convergence Divergence (MACD) for ITW just turned positive on October 08, 2026. Looking at past instances where ITW's MACD turned positive, the stock continued to rise in 24 of 47 cases over the following month. The odds of a continued upward trend are 51%.
ITW moved above its 50-day moving average on October 20, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for ITW crossed bullishly above the 50-day moving average on October 23, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 8 of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 53%.
Following a +1.55% 3-day Advance, the price is estimated to grow further. Considering data from situations where ITW advanced for three days, in 164 of 325 cases, the price rose further within the following month. The odds of a continued upward trend are 50%.
ITW may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options.
Bearish Trend Analysis
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 8 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ITW declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 41%.
The Aroon Indicator for ITW entered a downward trend on October 07, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron SMR rating for this company is 13 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 27 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 33 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 76, placing this stock better than average.
The Tickeron Price Growth Rating for this company is 49 (best 1 - 100 worst), indicating steady price growth. ITW’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Seasonality Score of 85 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of 96 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: ITW's P/B Ratio (27.183) is very high in comparison to the industry average of (3.933). P/E Ratio (24.975) is within average values for comparable stocks, (37.557). Projected Growth (PEG Ratio) (2.543) is also within normal values, averaging (1.879). Dividend Yield (0.025) settles around the average of (0.030) among similar stocks. P/S Ratio (4.699) is also within normal values, averaging (186.943).
ROP in upward trend: 10-day moving average crossed above 50-day moving average on October 23, 2026
The 10-day moving average for ROP crossed bullishly above the 50-day moving average on October 23, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 8 of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 62%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 08, 2026. You may want to consider a long position or call options on ROP as a result. In 43 of 106 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 41%.
The Moving Average Convergence Divergence (MACD) for ROP just turned positive on October 06, 2026. Looking at past instances where ROP's MACD turned positive, the stock continued to rise in 23 of 48 cases over the following month. The odds of a continued upward trend are 48%.
ROP moved above its 50-day moving average on October 20, 2026 date and that indicates a change from a downward trend to an upward trend.
Following a +1.24% 3-day Advance, the price is estimated to grow further. Considering data from situations where ROP advanced for three days, in 142 of 337 cases, the price rose further within the following month. The odds of a continued upward trend are 42%.
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 11 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where ROP declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 45%.
ROP broke above its upper Bollinger Band on October 22, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for ROP entered a downward trend on October 08, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 39 (best 1 - 100 worst), indicating steady price growth. ROP’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 61 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of 68 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (2.336) is normal, around the industry mean (-1.637). P/E Ratio (18.326) is within average values for comparable stocks, (15.502). Projected Growth (PEG Ratio) (1.393) is also within normal values, averaging (2.824). Dividend Yield (0.008) settles around the average of (0.077) among similar stocks. P/S Ratio (4.782) is also within normal values, averaging (71.128).
The Tickeron Seasonality Score of 75 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron PE Growth Rating for this company is 85 (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is 97 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. ROP’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock worse than average.
ITW | ROP | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 38 | 40 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 96 Overvalued | 68 Overvalued | |
PROFIT vs RISK RATING 1..100 | 33 | 97 | |
SMR RATING 1..100 | 13 | 61 | |
PRICE GROWTH RATING 1..100 | 49 | 39 | |
P/E GROWTH RATING 1..100 | 27 | 85 | |
SEASONALITY SCORE 1..100 | 85 | 75 |
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 (68) in the Industrial Conglomerates industry is in the same range as ITW (96) in the Industrial Machinery industry. This means that ROP’s stock grew similarly to ITW’s over the last 12 months.
ITW's Profit vs Risk Rating (33) in the Industrial Machinery industry is somewhat better than the same rating for ROP (97) 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.
ROP's Price Growth Rating (39) in the Industrial Conglomerates industry is in the same range as ITW (49) in the Industrial Machinery industry. This means that ROP’s stock grew similarly to ITW’s over the last 12 months.
ITW's P/E Growth Rating (27) in the Industrial Machinery industry is somewhat better than the same rating for ROP (85) 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 46% | 1 day ago 36% |
| Stochastic ODDS (%) | 1 day ago 44% | 1 day ago 47% |
| Momentum ODDS (%) | 1 day ago 64% | 1 day ago 41% |
| MACD ODDS (%) | 1 day ago 51% | 1 day ago 48% |
| TrendWeek ODDS (%) | 1 day ago 53% | 1 day ago 41% |
| TrendMonth ODDS (%) | 1 day ago 51% | 1 day ago 37% |
| Advances ODDS (%) | 6 days ago 50% | 1 day ago 42% |
| Declines ODDS (%) | 28 days ago 41% | 21 days ago 45% |
| BollingerBands ODDS (%) | 1 day ago 59% | 1 day ago 47% |
| Aroon ODDS (%) | 1 day ago 47% | 1 day ago 42% |
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 3 FA rating(s) are green while ROP’s FA Score has 0 green FA rating(s).
- ITW’s FA Score: 3 green, 2 red.
- ROP’s FA Score: 0 green, 5 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 7 TA indicator(s) are bullish while ROP’s TA Score has 5 bullish TA indicator(s).
- ITW’s TA Score: 7 bullish, 3 bearish.
- ROP’s TA Score: 5 bullish, 5 bearish.
Price Growth
ITW (@Industrial Machinery) experienced а +2.24% price change this week, while ROP (@Packaged Software) price change was +15.16% for the same time period.
The average weekly price growth across all stocks in the @Industrial Machinery industry was -4.06%. For the same industry, the average monthly price growth was -16.06%, and the average quarterly price growth was -19.55%.
The average weekly price growth across all stocks in the @Packaged Software industry was +1.58%. For the same industry, the average monthly price growth was -3.02%, and the average quarterly price growth was +4.51%.
Reported Earning Dates
ITW is expected to report earnings on Oct 27, 2026.
ROP is expected to report earnings on Feb 03, 2027.
Industries' Descriptions
@Industrial Machinery (-4.06% 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 (+1.58% 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.
Advertisement
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% | +0.80% | ||
| AME - ROP | 75% Closely correlated | +1.16% | ||
| GGG - ROP | 71% Closely correlated | -1.37% | ||
| IEX - ROP | 69% Closely correlated | +0.88% | ||
| OTIS - ROP | 69% Closely correlated | +0.16% | ||
| NDSN - ROP | 68% Closely correlated | +0.98% | ||
More | ||||