Advertisement
ITW vs VLTO
Which Stock Would AI Choose? Illinois Tool Works (ITW) vs. Veralto (VLTO) Stock Comparison
Key Takeaways
- Illinois Tool Works (ITW), a diversified industrial manufacturer, recently announced a 7% dividend increase for 2026, signaling strong shareholder commitment.
- Veralto (VLTO), focused on water and product quality solutions, reported Q4 2025 earnings that beat expectations but issued cautious guidance, contributing to recent share price pressure.
- Both stocks show positive year-to-date (YTD) gains around 10-11%, but ITW outperforms on a one-year basis with 14% returns versus VLTO's 3%.
- ITW trades at a larger market cap of $77.6 billion with a higher dividend yield of 2.39%, appealing to income-focused investors.
- VLTO offers growth potential in essential water solutions but faces valuation concerns amid softer recent momentum.
- Upcoming Q1 2026 earnings for both could shift relative performance, with analysts expecting growth for each.
Introduction
Illinois Tool Works (ITW) and Veralto (VLTO) represent distinct approaches within the industrials sector: broad diversification versus specialized environmental solutions. This stock comparison analyzes their recent market positioning, performance metrics, and growth drivers, aiding traders seeking momentum plays and long-term investors evaluating stability versus niche growth. With both anticipating Q1 earnings amid economic uncertainties, understanding their relative strengths helps in portfolio allocation decisions.
ITW Overview and Recent Performance
Illinois Tool Works (ITW) is a Fortune 300 global manufacturer operating across seven segments, including automotive OEM, food equipment, and test & measurement, with $16 billion in 2025 revenue. In recent market activity, ITW shares have demonstrated resilience, posting YTD gains of about 10% and trading near $269, below its 52-week high of $303. A 7% dividend hike for 2026, marking over 50 years of increases, has bolstered investor sentiment, alongside expectations for Q1 earnings growth. Broader factors like operating margin strength and diversified exposure have supported steady performance despite sector headwinds.
VLTO Overview and Recent Performance
Veralto (VLTO) provides essential water quality (60% of revenue) and product quality & innovation solutions, spun off from Danaher in 2023. Shares have gained around 11% YTD but lag one-year returns at 3%, currently near $89 versus a 52-week high of $110. Recent Q4 2025 results showed an earnings beat with 1.6% core sales growth, yet cautious 2026 guidance has tempered enthusiasm, leading to share price softness in recent weeks. Anticipation builds for Q1 earnings, with projected revenue up 5.3%.
Trending AI Robots
Tickeron's Trending AI Robots page curates the top 25 AI trading bots from over 350 available, each designed for stocks, ETFs, or crypto with diverse strategies like short-term momentum or sector rotation. These bots showcase impressive ranges: annualized returns from 15% to 168%, win rates of 48% to 88%, and profit factors highlighting risk-adjusted performance. Trading various tickers across industrials, tech, and energy, they adapt to current conditions with timeframes from 1 day to 55 days. Explore these high-performing options to enhance your trading edge in today's volatile markets.
Head-to-Head Comparison
ITW's diversified business model across multiple industrials segments offers stability and recession resistance, contrasting VLTO's focused exposure to water and product quality, which ties growth to environmental regulations and innovation cycles. Recent momentum favors ITW with superior one-year returns and dividend appeal (yield 2.39% vs. VLTO's 0.59%), while VLTO holds a slight YTD edge amid core sales growth. Risk factors include ITW's beta of 1.14 signaling moderate volatility, versus VLTO's similar 1.15 but higher sensitivity to guidance shifts. Market sentiment leans positive for ITW post-dividend news, while VLTO traders eye earnings catalysts.
Tickeron AI Verdict
Tickeron's AI currently leans toward ITW for its trend consistency, dividend reliability, and diversified positioning amid upcoming earnings growth prospects. While VLTO shows niche growth potential, recent guidance caution introduces higher uncertainty. This probabilistic edge favors ITW for relative stability in the current environment.
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. 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 ITW is a Buy and VLTO is a Hold.
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).
ITW’s FA Score shows that 2 FA rating(s) are green whileVLTO’s FA Score has 1 green FA rating(s).
- ITW’s FA Score: 2 green, 3 red.
- VLTO’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 5 TA indicator(s) are bullish while VLTO’s TA Score has 5 bullish TA indicator(s).
- ITW’s TA Score: 5 bullish, 5 bearish.
- VLTO’s TA Score: 5 bullish, 3 bearish.
Price Growth
ITW (@Industrial Machinery) experienced а -1.56% price change this week, while VLTO (@Industrial Specialties) price change was +0.74% for the same time period.
The average weekly price growth across all stocks in the @Industrial Machinery industry was +0.11%. For the same industry, the average monthly price growth was +4.15%, and the average quarterly price growth was +9.16%.
The average weekly price growth across all stocks in the @Industrial Specialties industry was +3.11%. For the same industry, the average monthly price growth was +4.92%, and the average quarterly price growth was +0.26%.
Reported Earning Dates
ITW is expected to report earnings on Aug 04, 2026.
VLTO is expected to report earnings on Jul 23, 2026.
Industries' Descriptions
@Industrial Machinery (+0.11% 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.
@Industrial Specialties (+3.11% weekly)Companies in the industrial specialties industry process basic materials and minerals into various specialty products, such as flat and safety glass, fire retardant products, paints and coatings. Examples of companies operating in this industry are Sherwin-Williams Company, PPG Industries, Inc. and RPM International Inc.
| ITW | VLTO | ITW / VLTO | |
| Capitalization | 75.3B | 20.8B | 362% |
| EBITDA | 4.74B | 1.38B | 343% |
| Gain YTD | 6.900 | -15.085 | -46% |
| P/E Ratio | 24.63 | 21.38 | 115% |
| Revenue | 16.2B | 5.59B | 290% |
| Total Cash | 827M | 1.43B | 58% |
| Total Debt | 9.15B | 2.66B | 344% |
ITW | ||
|---|---|---|
OUTLOOK RATING 1..100 | 17 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 20 Undervalued | |
PROFIT vs RISK RATING 1..100 | 53 | |
SMR RATING 1..100 | 12 | |
PRICE GROWTH RATING 1..100 | 37 | |
P/E GROWTH RATING 1..100 | 38 | |
SEASONALITY SCORE 1..100 | 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 | VLTO | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 26% | 1 day ago 38% |
| Stochastic ODDS (%) | 1 day ago 44% | 1 day ago 42% |
| Momentum ODDS (%) | 1 day ago 51% | 1 day ago 55% |
| MACD ODDS (%) | 1 day ago 59% | 1 day ago 35% |
| TrendWeek ODDS (%) | 1 day ago 46% | 1 day ago 46% |
| TrendMonth ODDS (%) | 1 day ago 49% | 1 day ago 50% |
| Advances ODDS (%) | 2 days ago 49% | 12 days ago 43% |
| Declines ODDS (%) | 23 days ago 41% | 26 days ago 47% |
| BollingerBands ODDS (%) | 1 day ago 43% | 1 day ago 61% |
| Aroon ODDS (%) | 1 day ago 50% | 1 day ago 48% |
Advertisement
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.
VLTO and
Correlation & Price change
A.I.dvisor indicates that over the last year, VLTO has been loosely correlated with IEX. These tickers have moved in lockstep 62% of the time. This A.I.-generated data suggests there is some statistical probability that if VLTO jumps, then IEX could also see price increases.
| Ticker / NAME | Correlation To VLTO | 1D Price Change % | ||
|---|---|---|---|---|
| VLTO | 100% | +1.99% | ||
| IEX - VLTO | 62% Loosely correlated | -1.86% | ||
| NDSN - VLTO | 61% Loosely correlated | -1.40% | ||
| XYL - VLTO | 61% Loosely correlated | -1.23% | ||
| ITW - VLTO | 61% Loosely correlated | -1.38% | ||
| DCI - VLTO | 59% Loosely correlated | -1.52% | ||
More | ||||