Illinois Tool Works Inc. (ITW) vs United Parcel Service, Inc. (UPS)
UPS leads on 9 of 17 compared metrics.
A side-by-side comparison of Illinois Tool Works Inc. and United Parcel Service, Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of June 15, 2026. The ● marks the stronger figure on each row (cheaper multiple, higher margin/return).
ITW
Illinois Tool Works Inc.
$257.43Industrials
UPS
United Parcel Service, Inc.
$108.10Industrials
Total return — ITW vs UPS
growth of $100 · last 27yITW +685.3%UPS +58.7%ITW compounded faster
ITW UPS
ITW vs UPS: by the numbers
- •UPS is the larger company ($91.89B vs $74.06B market cap).
- •UPS trades at the lower earnings multiple (17.49 vs 23.90 P/E).
- •ITW converts more revenue to profit (19.32% vs 5.94% net margin).
- •ITW grew revenue faster over the past five years (4.71% vs -0.23% CAGR).
- •UPS pays the higher dividend yield (6.07% vs 2.46%).
Which is better, ITW or UPS?
Metric tally: ITW 8 · UPS 9It depends on what you're optimizing for:
ValueUPS(lower P/E)
GrowthITW(faster 5Y revenue CAGR)
IncomeUPS(higher dividend yield)
QualityITW(higher ROIC)
Metrics side by side
Valuation
| Metric | ITW | UPS |
|---|---|---|
| P/E ratio | 23.90 | 17.49● |
| Forward P/E | 22.78 | 13.63● |
| P/S ratio | 4.59 | 1.04● |
| P/B ratio | 23.05 | 5.83● |
| PEG ratio | 2.50 | 0.52● |
| EV / EBITDA | 17.79 | 9.85● |
| FCF yield | 3.68% | 4.91%● |
Profitability
| Metric | ITW | UPS |
|---|---|---|
| Gross margin | 44.12%● | 17.79% |
| Operating margin | 26.42%● | 8.46% |
| Net margin | 19.32%● | 5.94% |
| ROE | 97.06%● | 33.30% |
| ROIC | 24.49%● | 10.40% |
Dividends
| Metric | ITW | UPS |
|---|---|---|
| Dividend yield | 2.46% | 6.07%● |
| Payout ratio | 60.17% | 100.00% |
Growth (annualized)
| Metric | ITW | UPS |
|---|---|---|
| Revenue CAGR (5Y) | 4.71%● | -0.23% |
| EPS CAGR (5Y) | 9.58% | 33.45%● |
| FCF CAGR (5Y) | 1.38%● | -8.72% |
| Total return CAGR (5Y) | 4.45%● | -7.79% |
Frequently asked
- Which is better, ITW or UPS?
- It depends on your goal. value: UPS (lower P/E); growth: ITW (faster 5Y revenue CAGR); income: UPS (higher dividend yield); quality: ITW (higher ROIC). Across all compared metrics, UPS leads 9 to 8.
- Is ITW or UPS cheaper?
- On trailing earnings, UPS is cheaper: ITW trades at a 23.90 P/E and UPS at 17.49.
- Which has grown faster, ITW or UPS?
- Over the past five years, ITW grew revenue faster — ITW at a 4.71% CAGR versus UPS at -0.23%.
- Does ITW or UPS pay a bigger dividend?
- ITW yields 2.46% and UPS yields 6.07% based on trailing dividends and the latest price.
- Is ITW or UPS more profitable?
- ITW runs the higher net margin — ITW at 19.32% versus UPS at 5.94%.
- Which has been the better investment, ITW or UPS?
- Over the past 10-year, ITW delivered the higher annualized total return — ITW at 11.65% versus UPS at 4.22%. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Illinois Tool Works P/E ratioUnited Parcel Service P/E ratioIllinois Tool Works dividend yieldUnited Parcel Service dividend yieldIllinois Tool Works ROEUnited Parcel Service ROEIllinois Tool Works operating marginUnited Parcel Service operating marginIllinois Tool Works revenue growthUnited Parcel Service revenue growthIllinois Tool Works free cash flowUnited Parcel Service free cash flow
Illinois Tool Works & United Parcel Service 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 15, 2026.