Illinois Tool Works Inc. (ITW) vs TransDigm Group Incorporated (TDG)
TDG leads on 9 of 16 compared metrics, though ITW is the cheaper stock.
A side-by-side comparison of Illinois Tool Works Inc. and TransDigm Group Incorporated across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 19, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
ITW
Illinois Tool Works Inc.
$264.09Industrials
TDG
TransDigm Group Incorporated
$1328.31Industrials
Total return — ITW vs TDG
growth of $100 · last 20yITW +446.1%TDG +5411.7%TDG compounded faster
Log scale — wide-divergence pair
ITW TDG
ITW vs TDG: by the numbers
- •ITW is the larger company ($75.98B vs $74.30B market cap).
- •ITW trades at the lower earnings multiple (24.52 vs 41.46 P/E).
- •TDG converts more revenue to profit (21.29% vs 19.32% net margin).
- •TDG grew revenue faster over the past five years (14.19% vs 4.71% CAGR).
- •TDG pays the higher dividend yield (6.78% vs 2.40%).
Which is better, ITW or TDG?
Metric tally: ITW 7 · TDG 9It depends on what you're optimizing for:
ValueITW(lower P/E)
GrowthTDG(faster 5Y revenue CAGR)
IncomeTDG(higher dividend yield)
QualityITW(higher ROIC)
Metrics side by side
Valuation
| Metric | ITW | TDG |
|---|---|---|
| P/E ratio | 24.52● | 41.46 |
| Forward P/E | 23.37● | 28.28 |
| P/S ratio | 4.71● | 8.14 |
| P/B ratio | 23.64 | — |
| PEG ratio | 2.56 | 1.47● |
| EV / EBITDA | 18.20● | 22.04 |
| FCF yield | 3.59%● | 2.39% |
Profitability
| Metric | ITW | TDG |
|---|---|---|
| Gross margin | 44.12% | 59.02%● |
| Operating margin | 26.42% | 46.51%● |
| Net margin | 19.32% | 21.29%● |
| ROE | 97.06%● | -21.41% |
| ROIC | 24.49%● | 15.22% |
Dividends
| Metric | ITW | TDG |
|---|---|---|
| Dividend yield | 2.40% | 6.78%● |
| Payout ratio | 60.17% | 280.55% |
Growth (annualized)
| Metric | ITW | TDG |
|---|---|---|
| Revenue CAGR (5Y) | 4.71% | 14.19%● |
| EPS CAGR (5Y) | 9.58% | 31.14%● |
| FCF CAGR (5Y) | 1.38% | 13.70%● |
| Total return CAGR (5Y) | 6.22% | 19.52%● |
Frequently asked
- Which is better, ITW or TDG?
- It depends on your goal. value: ITW (lower P/E); growth: TDG (faster 5Y revenue CAGR); income: TDG (higher dividend yield); quality: ITW (higher ROIC). Across all compared metrics, TDG leads 9 to 7.
- Is ITW or TDG cheaper?
- On trailing earnings, ITW is cheaper: ITW trades at a 24.52 P/E and TDG at 41.46.
- Which has grown faster, ITW or TDG?
- Over the past five years, TDG grew revenue faster — ITW at a 4.71% CAGR versus TDG at 14.19%.
- Does ITW or TDG pay a bigger dividend?
- ITW yields 2.40% and TDG yields 6.78% based on trailing dividends and the latest price.
- Is ITW or TDG more profitable?
- TDG runs the higher net margin — ITW at 19.32% versus TDG at 21.29%.
- Which has been the better investment, ITW or TDG?
- Over the past 10-year, TDG delivered the higher annualized total return — ITW at 12.13% versus TDG at 23.35%. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Illinois Tool Works P/E ratioTransDigm P/E ratioIllinois Tool Works dividend yieldTransDigm dividend yieldIllinois Tool Works ROETransDigm ROEIllinois Tool Works operating marginTransDigm operating marginIllinois Tool Works revenue growthTransDigm revenue growthIllinois Tool Works free cash flowTransDigm free cash flow
Illinois Tool Works & TransDigm 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 19, 2026.