LIVE
ITW
Illinois Tool Works Inc. · Industrials - Diversified Industrial Manufacturing
$264.09
+6.76% this month
VERSUS
⟷
COMPARE
GGG
Graco Inc. · Industrials - Fluid Handling Equipment
$76.03
+0.94% this month
Scoreboard verdict
Across AI score, momentum, valuation, upside, operating margin
ITW
3
GGG
1
Comparison scoreboard
ITW LEADS 3/5AI Score
ITW ✓49.9
GGG 44.7
1Y Return
ITW ✓+9.50%
GGG -8.94%
Fwd P/E
ITW ✓21.15
GGG 22.49
Target Up.
ITW +6.65%
GGG ✓+21.00%
Op. Margin
ITW 25.67%
GGG N/A
Metrics last refreshed: 6/20/2026
Quick take
ITW vs GGG Stock Comparison: AI Score, Valuation, Performance and Upside
ITW (Illinois Tool Works) and GGG (Graco) are both highly disciplined industrial companies renowned for operating excellence and dividend growth — ITW as the classic 80/20 diversified industrial conglomerate across seven segments, versus Graco's focused fluid handling equipment business. Both are Dividend Aristocrats with decades of consecutive dividend increases and premium operating margins.
ITW vs GGG is diversified industrial 80/20 conglomerate (Illinois Tool Works' systematic simplification across 80+ business units) versus focused fluid handling equipment leader (Graco's precision pumps and dispensers for industrial and contractor applications) — two of the most respected quality compounders in the industrial sector.
Live analysis · updated 6/20/2026
ITW holds the edge across 3 of 5 key metrics in this comparison. ITW leads on both 1-year return (+9.50%) and forward P/E (21.15x vs 22.49x for GGG), a relatively favorable combination of momentum and valuation. Analyst consensus implies meaningfully more upside for GGG (+21.00%) than for ITW (+6.65%).
Normalized 1Y performance
ITW
GGG
Recent returns
ITW
GGG
Analyst price targets & sentiment
ITW
Price target range
analyst mean$274.54
current price$264.09
+6.6% upside to analyst mean
GGG · 8 analysts
Price target range
analyst low$84.00
analyst high$100.00
analyst mean$92.00
current price$76.03
+21.0% upside to analyst mean
Who should consider this stock?
ITW may suit investors who:
- →Want a diversified industrial Dividend Aristocrat with 50+ years of consecutive dividend increases and 80/20 simplification driving consistent margin improvement
- →Value ITW's multi-segment diversification across automotive, food equipment, welding, construction, and specialty products as resilience through economic cycles
- →Prefer the large-cap, highly liquid Dividend Aristocrat status as a foundational industrial holding rather than a focused sector play
GGG may suit investors who:
- →Want a focused fluid handling equipment leader with market-leading positions in industrial pumps and dispensers and consistent innovation driving organic growth
- →Value Graco's application breadth across industrial, contractor, and process end markets as diversification within a specialized, defensible niche
- →See Graco's premium operating margins and consistent new product development as indicators of a durable competitive moat in fluid handling technology
Performance & AI score
| Metric | ITW | GGG |
|---|---|---|
| AI score | 49.9 | 44.7 |
| AI rank | #480 | #755 |
| Latest close | $264.09 | $76.03 |
| 1M return | +6.76% | +0.94% |
| 6M return | +4.63% | -7.95% |
| 1Y return | +9.50% | -8.94% |
$10,000 invested — hypothetical growth (dividends reinvested)
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | ITW | GGG |
|---|---|---|
| 1Y ago | $10.94K (+9.4%) started 2025-06-18 | $9.23K (-7.7%) started 2025-06-18 |
| 5Y ago | $14.29K (+42.9%) started 2021-06-21 | $12.13K (+21.3%) started 2021-06-18 |
| 10Y ago | $38.54K (+285.4%) started 2016-06-20 | $36.71K (+267.1%) started 2016-06-20 |
Hypothetical — past performance does not guarantee future results.
Valuation & upside potential
| Metric | ITW | GGG |
|---|---|---|
| Market cap | $74.06B | $12.62B |
| Trailing P/E | 23.92 | 24.85 |
| Forward P/E | 21.15 | 22.49 |
| Price/Sales | N/A | 5.61 |
| EV/Revenue | 5.08 | 5.34 |
| Analyst target | $274.54 | $92.00 |
| Target upside | +6.65% | +21.00% |
Growth, profitability & risk
| Metric | ITW | GGG |
|---|---|---|
| Revenue growth | 4.60% | 2.20% |
| Earnings growth | 11.80% | -2.80% |
| EPS growth | +11.80% | -2.80% |
| FCF margin | +13.66% | +23.00% |
| Operating margin | 25.67% | N/A |
| Profit margin | 19.32% | 22.96% |
| ROIC proxy | 96.85% | 19.78% |
| Return on equity | 96.85% | 19.78% |
| Dividend yield | 2.50% | 1.55% |
| Beta | 1.03 | 0.93 |
| Debt/equity | 283.22 | 1.93 |
| Current ratio | 1.19 | 3.56 |
| Quick ratio | 0.79 | 2.50 |
Drawdown & downside risk
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
1Y risk snapshot
ITW max drawdown17.95%
GGG max drawdown22.25%
ITW max wkly drop6.71%
GGG max wkly drop7.93%
5Y risk snapshot
ITW max drawdown28.05%
GGG max drawdown28.98%
ITW max wkly drop12.18%
GGG max wkly drop12.27%
10Y risk snapshot
ITW max drawdown37.85%
GGG max drawdown30.60%
ITW max wkly drop20.86%
GGG max wkly drop15.31%
Performance metrics by period
| Period | Metric | ITW | GGG |
|---|---|---|---|
| 1Y | Growth | +9.44% | -8.94% |
| CAGR | +9.45% | -8.95% | |
| Sharpe ratio | 0.32 | -0.63 | |
| Max drawdown | 17.95% | 22.25% | |
| Max daily drop | 4.54% | 3.94% | |
| Max wkly drop | 6.71% | 7.93% | |
| 5Y | Growth | +29.78% | +13.70% |
| CAGR | +5.36% | +2.60% | |
| Sharpe ratio | 0.14 | 0.03 | |
| Max drawdown | 28.05% | 28.98% | |
| Max daily drop | 5.79% | 7.51% | |
| Max wkly drop | 12.18% | 12.27% | |
| 10Y | Growth | +205.37% | +219.97% |
| CAGR | +11.82% | +12.34% | |
| Sharpe ratio | 0.40 | 0.41 | |
| Max drawdown | 37.85% | 30.60% | |
| Max daily drop | 11.51% | 10.66% | |
| Max wkly drop | 20.86% | 15.31% |
Business comparison
| Category | ITW | GGG |
|---|---|---|
| Company | Illinois Tool Works Inc. | Graco Inc. |
| Sector | Industrials | Industrials - Fluid Handling Equipment |
| Industry | N/A | N/A |
| Core business | Illinois Tool Works is a global diversified manufacturer of industrial products and equipment across seven segments: Automotive OEM, Food Equipment, Test & Measurement and Electronics, Welding, Polymers & Fluids, Construction Products, and Specialty Products — operating over 80 business units globally with a rigorous 80/20 simplification methodology. | Graco is a world-leading manufacturer of fluid handling equipment — pumps, meters, valves, and dispensing systems for precise movement of viscous, abrasive, or toxic fluids in industrial, contractor, and process markets across industrial finishing, construction, and manufacturing applications. |
| Investor focus | Investors track ITW's organic revenue growth by segment, operating margin progression (consistently targeting 30%+ enterprise operating margin), EPS growth through margin improvement and buybacks, and the dividend growth track record (over 50 consecutive years of annual dividend increases). | Investors track Graco's organic revenue growth by end market (Industrial, Contractor, Process), new product introduction cadence, operating margins, and the company's consistent long-term dividend growth record. |
ITW strengths
- →80/20 business simplification — ITW's proprietary methodology focuses each business unit on its top 20% of customers and products that generate 80% of revenue, eliminating complexity and improving margins dramatically
- →Decentralized operating model with 80+ business units allows entrepreneurial focus while enterprise scale provides purchasing power and shared best practices
- →Dividend Aristocrat with 50+ consecutive annual dividend increases — ITW is a classic compounding income investment for long-term dividend growth investors
GGG strengths
- →Market leadership in fluid handling equipment — Graco's products are specified by users for critical fluid applications where reliability and precision are essential, creating high switching costs
- →Breadth of applications from automotive paint spraying to oil and gas fluid transfer creates a diversified end market base less tied to any single industry
- →Consistent new product innovation — Graco regularly introduces new pump and dispenser technologies that expand addressable markets and drive replacement cycles
Risks to watch — ITW
- →Automotive OEM segment is tied to global auto production schedules — disruptions (semiconductor shortages, EV transition) affect ITW's largest segment
- →Organic revenue growth at ITW can be modest — the 80/20 strategy improves margins but deliberately eliminates lower-margin revenue that could otherwise contribute to growth
- →As a diversified industrial, ITW's performance across seven segments means economic downturns in manufacturing broadly affect revenue across multiple businesses simultaneously
Risks to watch — GGG
- →Graco's Contractor segment (airless paint sprayers for professional painters) is sensitive to residential and commercial construction activity cycles
- →Industrial and Process segments are sensitive to manufacturing capex and oil/gas investment cycles — slowdowns in these end markets reduce equipment orders
- →Graco is a premium-priced industrial equipment company — economic downturns create pressure from customers substituting lower-cost competitive alternatives temporarily
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