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

The structural profiles are close, with Illinois Tool Works carrying a narrow edge on profitability. The remaining gap is narrow enough that the comparison remains open to different readings. 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. Both peer scores are relative to the S&P 500 universe, making them directly comparable.

Updated 2026-08-16

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

Trajectory Similarity
0.79
Similar
Peer-set rank: #12
within Illinois Tool Works Inc.'s functional peer set

This pair is matched through long-term financial trajectory similarity within the selected peer universe.

The pair sits on a clearly comparable long-term path, though it is not a near-twin match.

The match is driven mainly by revenue stability and capital structure.

Similarity drivers
revenue stabilitycapital structure
How to read the score
0.85–1.00 · Very similar0.70–0.84 · Similar0.55–0.69 · Moderately similarbelow 0.55 · Loose match
Peer-Relative Score
ITW
Illinois Tool Works Inc.
65
Peer-Score
Signal qualitylow
Peer basis: S&P 500
vs
VLTO
Veralto Corporation
63
Peer-Score
Signal qualitylow
Peer basis: S&P 500

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

The clearest separation appears in profitability.

Dimension spread: ITW vs VLTO Profitability 77 57 Stability 68 74 Valuation 65 70 Growth 44 52 ITW VLTO
Gap Ranking
#1 Profitability +20
#2 Growth +8
#3 Stability +6
#4 Valuation +5
Price Setup

Left means cheaper relative valuation. Higher means stronger structure.

Price setup map for ITW and VLTO Stronger + cheaper Stronger + richer Weaker + cheaper Weaker + richer ITWVLTO Relative valuation Structural strength

The setup remains mixed because the stronger profile and the more supportive price setup do not sit on the same side.

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

Relative Position vs Comparable Companies
Profitability
Both look solid on profitability, though Illinois Tool Works Inc. still holds the stronger peer position.
Growth
On growth, the edge still sits with Veralto Corporation, even though both profiles look solid.
Profitability — Dominant Gap
ITW
77
VLTO
57
Gap+20in favour of ITW

Capital efficiency adds support, with a 5.8-point ROIC advantage.

What keeps the gap from being one-sided

Veralto Corporation still carries lower volatility exposure — that difference is real enough to prevent the comparison from becoming 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.

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

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Similar profitability-and-growth comparisons

Explore how ITW and VLTO 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.