Canadian Pacific Kansas City Ltd. (CP) vs Illinois Tool Works Inc. (ITW)
CP leads on 9 of 16 compared metrics.
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 June 26, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
CP
Canadian Pacific Kansas City Ltd.
$87.04Industrials
ITW
Illinois Tool Works Inc.
$270.60Industrials
Total return — CP vs ITW
growth of $100 · last 30yCP +3874.4%ITW +1509.8%CP compounded faster
CP ITW
CP vs ITW: by the numbers
- •ITW is the larger company ($77.85B vs $77.27B market cap).
- •CP trades at the lower earnings multiple (24.74 vs 25.13 P/E).
- •CP converts more revenue to profit (26.86% vs 19.32% net margin).
- •CP grew revenue faster over the past five years (15.26% vs 4.71% CAGR).
- •ITW pays the higher dividend yield (2.34% vs 0.98%).
Which is better, CP or ITW?
Metric tally: CP 9 · ITW 7It depends on what you're optimizing for:
GrowthCP(faster 5Y revenue CAGR)
IncomeITW(higher dividend yield)
QualityITW(higher ROIC)
Metrics side by side
Valuation
| Metric | CP | ITW |
|---|---|---|
| P/E ratio | 24.74 | 25.13 |
| Forward P/E | 14.70● | 23.94 |
| P/S ratio | 6.56 | 4.82● |
| P/B ratio | 2.33● | 24.23 |
| PEG ratio | 1.65● | 2.62 |
| EV / EBITDA | 14.53● | 18.61 |
| FCF yield | 1.90% | 3.50%● |
Profitability
| Metric | CP | ITW |
|---|---|---|
| Gross margin | 46.67%● | 44.12% |
| Operating margin | 36.78%● | 26.42% |
| Net margin | 26.86%● | 19.32% |
| ROE | 9.56% | 97.06%● |
| ROIC | 5.09% | 24.49%● |
Dividends
| Metric | CP | ITW |
|---|---|---|
| Dividend yield | 0.98% | 2.34%● |
| Payout ratio | 25.83% | 60.17% |
Growth (annualized)
| Metric | CP | ITW |
|---|---|---|
| Revenue CAGR (5Y) | 15.26%● | 4.71% |
| EPS CAGR (5Y) | 3.04% | 9.58%● |
| FCF CAGR (5Y) | 8.84%● | 1.38% |
| Total return CAGR (5Y) | 3.19% | 6.41%● |
Frequently asked
- Which is better, CP or ITW?
- It depends on your goal. growth: CP (faster 5Y revenue CAGR); income: ITW (higher dividend yield); quality: ITW (higher ROIC). Across all compared metrics, CP leads 9 to 7.
- Is CP or ITW cheaper?
- On trailing earnings, CP is cheaper: CP trades at a 24.74 P/E and ITW at 25.13.
- Which has grown faster, CP or ITW?
- Over the past five years, CP grew revenue faster — CP at a 15.26% CAGR versus ITW at 4.71%.
- Does CP or ITW pay a bigger dividend?
- CP yields 0.98% and ITW yields 2.34% based on trailing dividends and the latest price.
- Is CP or ITW more profitable?
- CP runs the higher net margin — CP at 26.86% versus ITW at 19.32%.
- Which has been the better investment, CP or ITW?
- Over the past 10-year, CP delivered the higher annualized total return — CP at 14.38% versus ITW at 12.90%. 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 June 26, 2026.