Canadian Pacific Kansas City Ltd. (CP) vs Illinois Tool Works Inc. (ITW)
A side-by-side comparison of Canadian Pacific Kansas City Ltd. and Illinois Tool Works Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of September 13, 2026. Differences are shown without an overall score or investment verdict.
CP
Canadian Pacific Kansas City Ltd.
$87.32IndustrialsDelayed quote: Sep 24, 2026, 4:00 PM EDT
ITW
Illinois Tool Works Inc.
$272.00IndustrialsDelayed quote: Sep 24, 2026, 4:00 PM EDT
Total return — CP vs ITW
growth of $100 · dividends reinvested · last 10yCP +237.7% (+12.9%/yr)ITW +186.6% (+11.1%/yr)CP compounded faster over this window
CP ITW
CP vs ITW: by the numbers
- •ITW is the larger company ($78.25B vs $76.76B market cap).
- •ITW trades at the lower trailing earnings multiple (24.66 vs 28.31 P/E), one valuation lens rather than an overall verdict.
- •CP converts more revenue to profit (25.04% vs 19.39% net margin).
- •CP grew revenue faster over the past five years (12.34% vs 3.30% CAGR).
- •ITW pays the higher dividend yield (2.40% vs 0.77%).
Metrics side by side
Valuation
| Metric | CP | ITW |
|---|---|---|
| P/E ratio | 28.31 | 24.66 |
| Forward P/E | N/A | 23.80 |
| P/S ratio | 6.93 | 4.75 |
| P/B ratio | 2.34 | 27.04 |
| EV / EBITDA | 16.96 | 18.61 |
| FCF yield | 2.39% | 3.73% |
Profitability
| Metric | CP | ITW |
|---|---|---|
| Gross margin | 53.42% | 44.16% |
| Operating margin | 36.84% | 26.50% |
| Net margin | 25.04% | 19.39% |
| ROE | 8.45% | 110.37% |
| ROIC | 5.02% | 24.71% |
Dividends
| Metric | CP | ITW |
|---|---|---|
| Dividend yield | 0.77% | 2.40% |
| Payout ratio | 22.14% | 58.39% |
Growth (annualized)
| Metric | CP | ITW |
|---|---|---|
| Revenue CAGR (5Y) | 12.34% | 3.30% |
| EPS CAGR (5Y) | 3.04% | 9.58% |
| FCF CAGR (5Y) | 12.22% | 4.41% |
| Total return CAGR (5Y) | 6.24% | 6.63% |
Frequently asked
- Which has the lower trailing P/E, CP or ITW?
- ITW has the lower trailing P/E: CP trades at 28.31 and ITW at 24.66. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, CP or ITW?
- Over the past five years, CP grew revenue faster — CP at a 12.34% CAGR versus ITW at 3.30%.
- Does CP or ITW pay a bigger dividend?
- CP yields 0.77% and ITW yields 2.40% based on trailing dividends and the latest price.
- Is CP or ITW more profitable?
- CP runs the higher net margin — CP at 25.04% versus ITW at 19.39%.
- How have CP and ITW total returns compared?
- Over the past 10 years, CP delivered 12.68% and ITW delivered 11.35% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Canadian Pacific Kansas City P/E ratioIllinois Tool Works P/E ratioCanadian Pacific Kansas City dividend yieldIllinois Tool Works dividend yieldCanadian Pacific Kansas City ROEIllinois Tool Works ROECanadian Pacific Kansas City operating marginIllinois Tool Works operating marginCanadian Pacific Kansas City revenue growthIllinois Tool Works revenue growthCanadian Pacific Kansas City free cash flowIllinois Tool Works free cash flow
Canadian Pacific Kansas City & 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 September 13, 2026.