Emerson Electric Co. (EMR) vs Illinois Tool Works Inc. (ITW)
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 September 11, 2026. Differences are shown without an overall score or investment verdict.
EMR
Emerson Electric Co.
$152.16IndustrialsDelayed quote: Sep 11, 2026, 4:00 PM EDT
ITW
Illinois Tool Works Inc.
$268.16IndustrialsDelayed quote: Sep 11, 2026, 4:00 PM EDT
Total return — EMR vs ITW
growth of $100 · dividends reinvested · last 10yEMR +269.7% (+14.0%/yr)ITW +183.4% (+11.0%/yr)EMR compounded faster over this window
EMR ITW
EMR vs ITW: by the numbers
- •EMR is the larger company ($85.22B vs $77.15B market cap).
- •ITW trades at the lower trailing earnings multiple (24.31 vs 33.30 P/E), one valuation lens rather than an overall verdict.
- •ITW converts more revenue to profit (19.39% vs 13.83% net margin).
- •ITW grew revenue faster over the past five years (3.30% vs 0.87% CAGR).
- •ITW pays the higher dividend yield (2.43% vs 1.50%).
Metrics side by side
Valuation
| Metric | EMR | ITW |
|---|---|---|
| P/E ratio | 33.30 | 24.31 |
| Forward P/E | 23.20 | 23.46 |
| P/S ratio | 4.57 | 4.68 |
| P/B ratio | 4.18 | 26.66 |
| EV / EBITDA | 19.14 | 18.38 |
| FCF yield | 4.06% | 3.79% |
Profitability
| Metric | EMR | ITW |
|---|---|---|
| Gross margin | 53.16% | 44.16% |
| Operating margin | 20.11% | 26.50% |
| Net margin | 13.83% | 19.39% |
| ROE | 12.65% | 110.37% |
| ROIC | 7.93% | 24.71% |
Dividends
| Metric | EMR | ITW |
|---|---|---|
| Dividend yield | 1.50% | 2.43% |
| Payout ratio | 48.58% | 58.39% |
Growth (annualized)
| Metric | EMR | ITW |
|---|---|---|
| Revenue CAGR (5Y) | 0.87% | 3.30% |
| EPS CAGR (5Y) | 4.54% | 9.58% |
| FCF CAGR (5Y) | 0.41% | 4.41% |
| Total return CAGR (5Y) | 10.36% | 6.40% |
Frequently asked
- Which has the lower trailing P/E, EMR or ITW?
- ITW has the lower trailing P/E: EMR trades at 33.30 and ITW at 24.31. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, EMR or ITW?
- Over the past five years, ITW grew revenue faster — EMR at a 0.87% CAGR versus ITW at 3.30%.
- Does EMR or ITW pay a bigger dividend?
- EMR yields 1.50% and ITW yields 2.43% based on trailing dividends and the latest price.
- Is EMR or ITW more profitable?
- ITW runs the higher net margin — EMR at 13.83% versus ITW at 19.39%.
- How have EMR and ITW total returns compared?
- Over the past 10 years, EMR delivered 14.05% and ITW delivered 11.23% annualized total return. 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 September 11, 2026.