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Donaldson Company vs Illinois Tool Works: Which Stock Looks Stronger in 2026?

Illinois Tool Works holds the cleaner structural position, with profitability as the main driver and growth adding further support. Donaldson Company does not offset that deficit through any equally strong structural edge elsewhere. The market setup broadly confirms the structural lead — Illinois Tool Works holds the more constructive position. That puts structure and market broadly in agreement — Illinois Tool Works's lead looks more confirmed than conflicted.

The comparison is based on similar long-term financial trajectories, not sector labels.

Updated 2026-04-05

The clearest separation starts in profitability, but growth adds another real layer to the result. Illinois Tool Works Inc. leads by 21 points on the overall comparison score.

INDUSTRY COMPARISON

Both operate in: Specialty Industrial Machinery

This comparison is based on industry proximity, not on functional trajectory similarity. DCI and ITW share the same industry classification.

For a similarity-based comparison, see how Donaldson Company and Illinois Tool Works each position within their functional peer groups in AssetNext.

Peer-Relative Score
DCI
Donaldson Company, Inc.
48
Peer-Score
Signal qualityMedium
vs
ITW
Illinois Tool Works Inc.
69
Peer-Score
Signal qualityMedium

Scores reflect position relative to comparable companies with similar long-term financial trajectories.

The largest gaps do not all point in the same direction.

Dimension spread: DCI vs ITW Profitability 38 80 Stability 53 68 Valuation 63 67 Growth 34 56 DCI ITW
Gap Ranking
#1 Profitability +42
#2 Growth +22
#3 Stability +15
#4 Valuation +4
Price Setup

Left means cheaper relative valuation. Higher means stronger structure.

Price setup map for DCI and ITW Stronger + cheaper Stronger + richer Weaker + cheaper Weaker + richer DCIITW Relative valuation Structural strength

The setup stays mixed because structure and the price setup do not align cleanly in one direction.

Valuation position uses peer-relative PE percentile (idx_pct_pe) where available.

Relative Position vs Comparable Companies
Profitability
Illinois Tool Works Inc. ranks near the top of the group on profitability; Donaldson Company, Inc. sits in the weaker half.
Growth
Illinois Tool Works Inc. sits in the stronger part of the group on growth, while Donaldson Company, Inc. is closer to mid-pack.
Profitability — Dominant Gap
DCI
38
ITW
80
Gap+42in favour of ITW

The profitability lead is mainly driven by a 13.2-point operating margin advantage.

What keeps the gap from being one-sided

Donaldson Company, Inc. still looks less cycle-sensitive — that keeps the result from looking completely one-sided.

What this means for the comparison

Profitability is the clearest driver, and growth also supports Illinois Tool Works Inc.'s broader structural position.

Explore full peer positioning in AssetNext

Break down the DCI vs ITW comparison across all dimensions with the full interactive tool.

Explore full breakdown →
Similar profitability-driven comparisons

Explore how DCI and ITW each compare against other companies in their peer groups.

Rule-based, descriptive analysis only. Derived from peer percentile dimensions. Not investment advice. Peer groups are determined algorithmically based on structural similarity — not by sector classification alone.

How AssetNext Peer Scores Work

AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.

Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.

Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.