Emerson Electric Co. (EMR) vs Illinois Tool Works Inc. (ITW)
ITW leads on 9 of 16 compared metrics.
A side-by-side comparison of Emerson Electric Co. and Illinois Tool Works Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 13, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
EMR
Emerson Electric Co.
$143.07Industrials
ITW
Illinois Tool Works Inc.
$257.43Industrials
Total return — EMR vs ITW
growth of $100 · last 30yEMR +552.1%ITW +1454.5%ITW compounded faster
EMR ITW
EMR vs ITW: by the numbers
- •EMR is the larger company ($80.13B vs $74.06B market cap).
- •ITW trades at the lower earnings multiple (23.90 vs 33.04 P/E).
- •ITW converts more revenue to profit (19.32% vs 13.35% net margin).
- •ITW grew revenue faster over the past five years (4.71% vs 1.43% CAGR).
- •ITW pays the higher dividend yield (2.46% vs 1.53%).
Which is better, EMR or ITW?
Metric tally: EMR 7 · ITW 9It depends on what you're optimizing for:
ValueITW(lower P/E)
GrowthITW(faster 5Y revenue CAGR)
IncomeITW(higher dividend yield)
QualityITW(higher ROIC)
Valuation
| Metric | EMR | ITW |
|---|---|---|
| P/E ratio | 33.04 | 23.90● |
| Forward P/E | 19.92● | 22.78 |
| P/S ratio | 4.40● | 4.59 |
| P/B ratio | 3.97● | 23.05 |
| PEG ratio | 1.77● | 2.50 |
| EV / EBITDA | 17.92 | 17.79 |
| FCF yield | 3.87%● | 3.68% |
Profitability
| Metric | EMR | ITW |
|---|---|---|
| Gross margin | 52.66%● | 44.12% |
| Operating margin | 19.96% | 26.42%● |
| Net margin | 13.35% | 19.32%● |
| ROE | 12.04% | 97.06%● |
| ROIC | 7.26% | 24.49%● |
Dividends
| Metric | EMR | ITW |
|---|---|---|
| Dividend yield | 1.53% | 2.46%● |
| Payout ratio | 53.87% | 60.17% |
Growth (annualized)
| Metric | EMR | ITW |
|---|---|---|
| Revenue CAGR (5Y) | 1.43% | 4.71%● |
| EPS CAGR (5Y) | 4.54% | 9.58%● |
| FCF CAGR (5Y) | -0.23% | 1.38%● |
| Total return CAGR (5Y) | 10.27%● | 4.45% |
Frequently asked
- Which is better, EMR or ITW?
- It depends on your goal. value: ITW (lower P/E); growth: ITW (faster 5Y revenue CAGR); income: ITW (higher dividend yield); quality: ITW (higher ROIC). Across all compared metrics, ITW leads 9 to 7.
- Is EMR or ITW cheaper?
- On trailing earnings, ITW is cheaper: EMR trades at a 33.04 P/E and ITW at 23.90.
- Which has grown faster, EMR or ITW?
- Over the past five years, ITW grew revenue faster — EMR at a 1.43% CAGR versus ITW at 4.71%.
- Does EMR or ITW pay a bigger dividend?
- EMR yields 1.53% and ITW yields 2.46% based on trailing dividends and the latest price.
- Is EMR or ITW more profitable?
- ITW runs the higher net margin — EMR at 13.35% versus ITW at 19.32%.
- Which has been the better investment, EMR or ITW?
- Over the past 10-year, EMR delivered the higher annualized total return — EMR at 13.28% versus ITW at 11.65%. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Emerson Electric P/E ratioIllinois Tool Works P/E ratioEmerson Electric dividend yieldIllinois Tool Works dividend yieldEmerson Electric ROEIllinois Tool Works ROEEmerson Electric operating marginIllinois Tool Works operating marginEmerson Electric revenue growthIllinois Tool Works revenue growthEmerson Electric free cash flowIllinois Tool Works free cash flow
Emerson Electric & 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 13, 2026.