Illinois Tool Works Inc. (ITW) vs United Parcel Service, Inc. (UPS)
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 September 11, 2026. Differences are shown without an overall score or investment verdict.
ITW
Illinois Tool Works Inc.
$268.16IndustrialsDelayed quote: Sep 11, 2026, 4:00 PM EDT
UPS
United Parcel Service, Inc.
$100.27IndustrialsDelayed quote: Sep 11, 2026, 4:00 PM EDT
Total return — ITW vs UPS
growth of $100 · dividends reinvested · last 10yITW +185.6% (+11.1%/yr)UPS +34.9% (+3.0%/yr)ITW compounded faster over this window
ITW UPS
ITW vs UPS: by the numbers
- •UPS is the larger company ($85.18B vs $77.15B market cap).
- •UPS trades at the lower trailing earnings multiple (18.64 vs 24.31 P/E), one valuation lens rather than an overall verdict.
- •ITW converts more revenue to profit (19.39% vs 5.08% net margin).
- •ITW grew revenue faster over the past five years (3.30% vs 0.98% CAGR).
- •UPS pays the higher dividend yield (6.61% vs 2.43%).
Metrics side by side
Valuation
| Metric | ITW | UPS |
|---|---|---|
| P/E ratio | 24.31 | 18.64 |
| Forward P/E | 23.46 | 13.94 |
| P/S ratio | 4.68 | 0.95 |
| P/B ratio | 26.66 | 5.65 |
| EV / EBITDA | 18.38 | 10.46 |
| FCF yield | 3.79% | 6.44% |
Profitability
| Metric | ITW | UPS |
|---|---|---|
| Gross margin | 44.16% | 16.63% |
| Operating margin | 26.50% | 7.31% |
| Net margin | 19.39% | 5.08% |
| ROE | 110.37% | 30.33% |
| ROIC | 24.71% | 8.99% |
Dividends
| Metric | ITW | UPS |
|---|---|---|
| Dividend yield | 2.43% | 6.61% |
| Payout ratio | 58.39% | 121.93% |
Growth (annualized)
| Metric | ITW | UPS |
|---|---|---|
| Revenue CAGR (5Y) | 3.30% | 0.98% |
| EPS CAGR (5Y) | 9.58% | 33.45% |
| FCF CAGR (5Y) | 4.41% | -7.15% |
| Total return CAGR (5Y) | 6.40% | -7.84% |
Frequently asked
- Which has the lower trailing P/E, ITW or UPS?
- UPS has the lower trailing P/E: ITW trades at 24.31 and UPS at 18.64. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, ITW or UPS?
- Over the past five years, ITW grew revenue faster — ITW at a 3.30% CAGR versus UPS at 0.98%.
- Does ITW or UPS pay a bigger dividend?
- ITW yields 2.43% and UPS yields 6.61% based on trailing dividends and the latest price.
- Is ITW or UPS more profitable?
- ITW runs the higher net margin — ITW at 19.39% versus UPS at 5.08%.
- How have ITW and UPS total returns compared?
- Over the past 10 years, ITW delivered 11.23% and UPS delivered 3.13% annualized total return. 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 September 11, 2026.