Canadian National Railway Company (CNI) vs Illinois Tool Works Inc. (ITW)
ITW leads on 8 of 15 compared metrics, though CNI is the cheaper stock.
A side-by-side comparison of Canadian National Railway Company and Illinois Tool Works Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 28, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
CNI
Canadian National Railway Company
$120.56Industrials
ITW
Illinois Tool Works Inc.
$267.71Industrials
Total return — CNI vs ITW
growth of $100 · last 30yCNI +3655.8%ITW +1165.2%CNI compounded faster
CNI ITW
CNI vs ITW: by the numbers
- •ITW is the larger company ($77.02B vs $73.13B market cap).
- •CNI trades at the lower earnings multiple (21.88 vs 24.86 P/E).
- •CNI converts more revenue to profit (27.22% vs 19.32% net margin).
- •ITW grew revenue faster over the past five years (4.71% vs 3.41% CAGR).
- •ITW pays the higher dividend yield (2.41% vs 2.17%).
Which is better, CNI or ITW?
Metric tally: CNI 7 · ITW 8It depends on what you're optimizing for:
ValueCNI(lower P/E)
GrowthITW(faster 5Y revenue CAGR)
IncomeITW(higher dividend yield)
QualityITW(higher ROIC)
Metrics side by side
Valuation
| Metric | CNI | ITW |
|---|---|---|
| P/E ratio | 21.88● | 24.86 |
| Forward P/E | 13.78● | 23.69 |
| P/S ratio | 5.88 | 4.77● |
| P/B ratio | 4.77● | 23.97 |
| PEG ratio | 2.29● | 2.59 |
| EV / EBITDA | 14.61● | 18.63 |
| FCF yield | 3.51% | 3.54% |
Profitability
| Metric | CNI | ITW |
|---|---|---|
| Gross margin | 44.21% | 44.12% |
| Operating margin | 37.76%● | 26.42% |
| Net margin | 27.22%● | 19.32% |
| ROE | 22.07% | 97.06%● |
| ROIC | 8.90% | 24.49%● |
Dividends
| Metric | CNI | ITW |
|---|---|---|
| Dividend yield | 2.17% | 2.41%● |
| Payout ratio | 47.56% | 61.22% |
Growth (annualized)
| Metric | CNI | ITW |
|---|---|---|
| Revenue CAGR (5Y) | 3.41% | 4.71%● |
| EPS CAGR (5Y) | 6.99% | 9.58%● |
| FCF CAGR (5Y) | 0.73% | 1.38%● |
| Total return CAGR (5Y) | 4.67% | 6.18%● |
Frequently asked
- Which is better, CNI or ITW?
- It depends on your goal. value: CNI (lower P/E); growth: ITW (faster 5Y revenue CAGR); income: ITW (higher dividend yield); quality: ITW (higher ROIC). Across all compared metrics, ITW leads 8 to 7.
- Is CNI or ITW cheaper?
- On trailing earnings, CNI is cheaper: CNI trades at a 21.88 P/E and ITW at 24.86.
- Which has grown faster, CNI or ITW?
- Over the past five years, ITW grew revenue faster — CNI at a 3.41% CAGR versus ITW at 4.71%.
- Does CNI or ITW pay a bigger dividend?
- CNI yields 2.17% and ITW yields 2.41% based on trailing dividends and the latest price.
- Is CNI or ITW more profitable?
- CNI runs the higher net margin — CNI at 27.22% versus ITW at 19.32%.
- Which has been the better investment, CNI or ITW?
- Over the past 10-year, ITW delivered the higher annualized total return — CNI at 9.87% versus ITW at 12.78%. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Canadian National Railway P/E ratioIllinois Tool Works P/E ratioCanadian National Railway dividend yieldIllinois Tool Works dividend yieldCanadian National Railway ROEIllinois Tool Works ROECanadian National Railway operating marginIllinois Tool Works operating marginCanadian National Railway revenue growthIllinois Tool Works revenue growthCanadian National Railway free cash flowIllinois Tool Works free cash flow
Canadian National Railway & Illinois Tool Works appear in these rankings
Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified June 28, 2026.