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Illinois Tool Works vs Otis Worldwide: Which Stock Looks Stronger in 2026?

The structural profiles are close, with Otis Worldwide carrying a narrow edge on valuation. The remaining gap is narrow enough that the comparison remains open to different readings. The market setup is currently leaning toward Illinois Tool Works, which does not confirm the structural lead. That leaves a split case: the structural lead stays with Otis Worldwide, but the market is not currently confirming it.

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

Updated 2026-04-05

The comparison is mainly decided in valuation, with the rest of the profile carrying less weight.

INDUSTRY COMPARISON

Both operate in: Specialty Industrial Machinery

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

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

Peer-Relative Score
ITW
Illinois Tool Works Inc.
69
Peer-Score
Signal qualityMedium
vs
OTIS
Otis Worldwide Corporation
74
Peer-Score
Signal qualityMedium

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

Pricing shapes this comparison more than a broad operating gap.

Dimension spread: ITW vs OTIS Profitability 80 84 Stability 68 64 Valuation 67 80 Growth 56 58 ITW OTIS
Gap Ranking
#1 Valuation +13
#2 Profitability +4
#3 Stability +4
#4 Growth +2
Price Setup

Left means cheaper relative valuation. Higher means stronger structure.

Price setup map for ITW and OTIS Stronger + cheaper Stronger + richer Weaker + cheaper Weaker + richer ITWOTIS Relative valuation Structural strength

The structural gap is limited here, but current pricing still leans against Illinois Tool Works Inc..

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

Relative Position vs Comparable Companies
Valuation
Both rank well on valuation, but Otis Worldwide Corporation still sits higher.
Valuation — Dominant Gap
ITW
67
OTIS
80
Gap+13in favour of OTIS

The multiple-based pricing edge comes from a forward P/E that is 5.7 turns lower.

What keeps the gap from being one-sided

Illinois Tool Works Inc. still shows lower market-fundamental divergence, which keeps the wider picture mixed rather than completely one-sided.

What this means for the comparison

The lead is visible, but pricing still does more of the work than the broader operating profile.

Explore full peer positioning in AssetNext

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

Explore full breakdown →
Other close comparisons

Explore how ITW and OTIS 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.