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Illinois Tool Works vs Parker-Hannifin: Which Stock Looks Stronger in 2026?

Illinois Tool Works holds the cleaner structural position, with profitability as the main driver and valuation adding further support. Parker-Hannifin still has the edge on growth, which keeps the comparison from looking entirely one-sided. In the market, Parker-Hannifin carries the stronger setup — intact trend against Illinois Tool Works's broken trend. That leaves a split case: the structural lead stays with Illinois Tool Works, but the market is not currently confirming it.

The comparison is based on similar long-term financial trajectories, not sector labels. Both peer scores are relative to the S&P 500 universe, making them directly comparable.

Updated 2026-05-17

The clearest separation starts in profitability, but valuation adds another real layer to the result. Illinois Tool Works Inc. leads by 14 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. ITW and PH share the same industry classification.

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

Peer-Relative Score
ITW
Illinois Tool Works Inc.
66
Peer-Score
Signal qualitylow
Peer basis: S&P 500
vs
PH
Parker-Hannifin Corporation
52
Peer-Score
Signal qualitylow
Peer basis: S&P 500

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: ITW vs PH Profitability 85 50 Stability 64 56 Valuation 69 50 Growth 37 53 ITW PH
Gap Ranking
#1 Profitability +35
#2 Valuation +19
#3 Growth +16
#4 Stability +8
Price Setup

Left means cheaper relative valuation. Higher means stronger structure.

Price setup map for ITW and PH Stronger + cheaper Stronger + richer Weaker + cheaper Weaker + richer ITWPH Relative valuation Structural strength

Illinois Tool Works Inc. looks stronger on relative valuation, while the broader price setup remains mixed.

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

Entry today — historical context

Where ITW and PH each sit in their own 5-year price and valuation history.

BASED ON 5-YEAR HISTORY ITW Elevated · above norm 0th 50th 100th 14 pct gap PH Elevated · above norm 0th 50th 100th 77th 91st
ITW (77th percentile) and PH (91st percentile) both sit in the upper portion of their own 5-year ranges. The historical entry context is broadly similar for both. This reflects entry timing, not which company is structurally stronger.

Describes historical entry positioning only. Descriptive — not investment advice.

Relative Position vs Comparable Companies
Profitability
Both rank well on profitability, but Illinois Tool Works Inc. still holds a clear edge.
Valuation
On valuation, the edge still sits with Illinois Tool Works Inc., even though both profiles look solid.
Profitability — Dominant Gap
ITW
85
PH
50
Gap+35in favour of ITW

Capital efficiency adds support, with a 11.9-point ROIC advantage.

What keeps the gap from being one-sided

A meaningful counterforce remains in growth, which keeps the comparison from looking completely one-sided.

What this means for the comparison

Profitability is the clearest driver of the lead, with valuation adding further support — though growth still provides a real counterweight.

Explore full peer positioning in AssetNext

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

Explore full breakdown →
Similar profitability-and-valuation comparisons

Explore how ITW and PH 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.

Because scores are peer-relative, the same company can have slightly different scores in different index universes. On comparison pages, both companies are shown within their shared peer universe wherever possible — so the scores are directly comparable. The peer basis is stated on each score card.

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.