Honeywell International Inc. (HON) vs Illinois Tool Works Inc. (ITW)
ITW leads on 10 of 17 compared metrics, though HON is the cheaper stock.
A side-by-side comparison of Honeywell International Inc. and Illinois Tool Works Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of July 24, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
HON
Honeywell International Inc.
$246.27IndustrialsAt close: Jul 23, 2026, 4:00 PM ET
ITW
Illinois Tool Works Inc.
$276.91IndustrialsAt close: Jul 23, 2026, 4:00 PM ET
Total return — HON vs ITW
growth of $100 · dividends reinvested · last 30yHON +2156.9%ITW +3038.5%ITW compounded faster
HON ITW
HON vs ITW: by the numbers
- •ITW is the larger company ($79.67B vs $78.02B market cap).
- •HON trades at the lower earnings multiple (9.11 vs 25.71 P/E).
- •HON converts more revenue to profit (22.73% vs 19.32% net margin).
- •ITW grew revenue faster over the past five years (4.71% vs 1.25% CAGR).
- •HON pays the higher dividend yield (3.82% vs 2.33%).
Which is better, HON or ITW?
Metric tally: HON 7 · ITW 10It depends on what you're optimizing for:
ValueHON(lower P/E)
GrowthITW(faster 5Y revenue CAGR)
IncomeHON(higher dividend yield)
QualityITW(higher ROIC)
Metrics side by side
Valuation
| Metric | HON | ITW |
|---|---|---|
| P/E ratio | 9.11● | 25.71 |
| Forward P/E | 29.76 | 24.49● |
| P/S ratio | 2.17● | 4.94 |
| P/B ratio | 3.11● | 24.79 |
| PEG ratio | 5.24 | 2.68● |
| EV / EBITDA | 16.26● | 19.20 |
| FCF yield | 4.14%● | 3.42% |
Profitability
| Metric | HON | ITW |
|---|---|---|
| Gross margin | 36.57% | 44.12%● |
| Operating margin | 14.09% | 26.42%● |
| Net margin | 22.73%● | 19.32% |
| ROE | 32.56% | 97.06%● |
| ROIC | 9.22% | 24.49%● |
Dividends
| Metric | HON | ITW |
|---|---|---|
| Dividend yield | 3.82%● | 2.33% |
| Payout ratio | 63.51% | 61.22% |
Growth (annualized)
| Metric | HON | ITW |
|---|---|---|
| Revenue CAGR (5Y) | 1.25% | 4.71%● |
| EPS CAGR (5Y) | 1.74% | 9.58%● |
| FCF CAGR (5Y) | 0.34% | 1.38%● |
| Total return CAGR (5Y) | 5.71% | 6.59%● |
Frequently asked
- Which is better, HON or ITW?
- It depends on your goal. value: HON (lower P/E); growth: ITW (faster 5Y revenue CAGR); income: HON (higher dividend yield); quality: ITW (higher ROIC). Across all compared metrics, ITW leads 10 to 7.
- Is HON or ITW cheaper?
- On trailing earnings, HON is cheaper: HON trades at a 9.11 P/E and ITW at 25.71.
- Which has grown faster, HON or ITW?
- Over the past five years, ITW grew revenue faster — HON at a 1.25% CAGR versus ITW at 4.71%.
- Does HON or ITW pay a bigger dividend?
- HON yields 3.82% and ITW yields 2.33% based on trailing dividends and the latest price.
- Is HON or ITW more profitable?
- HON runs the higher net margin — HON at 22.73% versus ITW at 19.32%.
- Which has been the better investment, HON or ITW?
- Over the past 10-year, HON delivered the higher annualized total return — HON at 13.05% versus ITW at 11.82%. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Honeywell International P/E ratioIllinois Tool Works P/E ratioHoneywell International dividend yieldIllinois Tool Works dividend yieldHoneywell International ROEIllinois Tool Works ROEHoneywell International operating marginIllinois Tool Works operating marginHoneywell International revenue growthIllinois Tool Works revenue growthHoneywell International free cash flowIllinois Tool Works free cash flow
Honeywell International & 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 July 24, 2026.