General Dynamics Corporation (GD) vs Illinois Tool Works Inc. (ITW)

GD leads on 10 of 17 compared metrics.

A side-by-side comparison of General Dynamics Corporation and Illinois Tool Works Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 16, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).

Compare

Total return — GD vs ITW

growth of $100 · last 30y
GD +2219.5%ITW +1527.5%GD compounded faster
05001k2k2k3kStart $100200120062011201620212026$2,320$1,627
GD ITW

GD vs ITW: by the numbers

  • GD is the larger company ($97.23B vs $75.52B market cap).
  • GD trades at the lower earnings multiple (22.61 vs 24.37 P/E).
  • ITW converts more revenue to profit (19.32% vs 8.07% net margin).
  • GD grew revenue faster over the past five years (6.89% vs 4.71% CAGR).
  • ITW pays the higher dividend yield (2.41% vs 1.69%).

Which is better, GD or ITW?

Metric tally: GD 10 · ITW 7

It depends on what you're optimizing for:

ValueGD(lower P/E)
GrowthGD(faster 5Y revenue CAGR)
IncomeITW(higher dividend yield)
QualityITW(higher ROIC)

Metrics side by side

Valuation

MetricGDITW
P/E ratio22.6124.37
Forward P/E19.7323.23
P/S ratio1.834.68
P/B ratio3.7823.50
PEG ratio1.632.54
EV / EBITDA16.3218.10
FCF yield6.29%3.61%

Profitability

MetricGDITW
Gross margin15.24%44.12%
Operating margin10.24%26.42%
Net margin8.07%19.32%
ROE16.65%97.06%
ROIC10.58%24.49%

Dividends

MetricGDITW
Dividend yield1.69%2.41%
Payout ratio38.94%60.17%

Growth (annualized)

MetricGDITW
Revenue CAGR (5Y)6.89%4.71%
EPS CAGR (5Y)7.22%9.58%
FCF CAGR (5Y)11.42%1.38%
Total return CAGR (5Y)15.76%4.92%

Frequently asked

Which is better, GD or ITW?
It depends on your goal. value: GD (lower P/E); growth: GD (faster 5Y revenue CAGR); income: ITW (higher dividend yield); quality: ITW (higher ROIC). Across all compared metrics, GD leads 10 to 7.
Is GD or ITW cheaper?
On trailing earnings, GD is cheaper: GD trades at a 22.61 P/E and ITW at 24.37.
Which has grown faster, GD or ITW?
Over the past five years, GD grew revenue faster — GD at a 6.89% CAGR versus ITW at 4.71%.
Does GD or ITW pay a bigger dividend?
GD yields 1.69% and ITW yields 2.41% based on trailing dividends and the latest price.
Is GD or ITW more profitable?
ITW runs the higher net margin — GD at 8.07% versus ITW at 19.32%.
Which has been the better investment, GD or ITW?
Over the past 10-year, GD delivered the higher annualized total return — GD at 12.29% versus ITW at 12.18%. Past performance doesn't predict future results.

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 16, 2026.