Illinois Tool Works vs Otis Worldwide
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The short version
- Illinois Tool Works is the larger business, with $16.0B of revenue in fiscal 2025 against $14.4B for Otis Worldwide.
- Illinois Tool Works kept more of each dollar of sales as operating profit (26.3% operating margin, against 14.8%).
- Illinois Tool Works turned more of its sales into free cash flow (16.9% FCF margin, against 10.0%).
- Otis Worldwide earned a higher return on the capital invested in it (116.6%, against 30.2%).
- Investors pay more for each dollar of Illinois Tool Works’s earnings: a P/E of 25.0x against 19.3x for Otis Worldwide.
| Latest fiscal year | ITW · FY25 | OTIS · FY25 |
|---|---|---|
| Size | ||
| Market cap | $79.1B | $28.8B |
| Revenue | $16.0B | $14.4B |
| Free cash flow | $2.7B | $1.4B |
| Net income | $3.1B | $1.4B |
| Growth | ||
| Revenue growth | 0.9% | 1.2% |
| 5-year growth | 5.0% | 2.5% |
| Share count change | −1.9% | −2.4% |
| Profitability | ||
| Gross margin | 52.9% | — |
| Operating margin | 26.3% | 14.8% |
| Net margin | 19.1% | 9.6% |
| FCF margin | 16.9% | 10.0% |
| Return on capital | 30.2% | 116.6% |
| Return on equity | 93.7% | — |
| Balance sheet | ||
| Net debt | $8.1B | $6.9B |
| Net debt / EBITDA | 1.8x | 3.0x |
| Dividends and buybacks | $3.3B | $1.5B |
| Valuation & quality | ||
| P/E | 25.0x | 19.3x |
| Piotroski F-score | 6 | 5 |
Revenue
FY16
ITW $13.6B
OTIS —
FY17
ITW $14.3B
OTIS —
FY18
ITW $14.8B
OTIS $12.9B
FY19
ITW $14.1B
OTIS $13.1B
FY20
ITW $12.6B
OTIS $12.8B
FY21
ITW $14.5B
OTIS $14.3B
FY22
ITW $15.9B
OTIS $13.7B
FY23
ITW $16.1B
OTIS $14.2B
FY24
ITW $15.9B
OTIS $14.3B
FY25
ITW $16.0B
OTIS $14.4B
ITW
OTIS
Operating margin
FY16
ITW 22.5%
OTIS —
FY17
ITW 24.4%
OTIS —
FY18
ITW 24.3%
OTIS 14.2%
FY19
ITW 24.1%
OTIS 13.8%
FY20
ITW 22.9%
OTIS 12.9%
FY21
ITW 24.1%
OTIS 14.7%
FY22
ITW 23.8%
OTIS 14.9%
FY23
ITW 25.1%
OTIS 15.4%
FY24
ITW 26.8%
OTIS 14.1%
FY25
ITW 26.3%
OTIS 14.8%
ITW
OTIS
Free cash flow
FY16
ITW $2.0B
OTIS —
FY17
ITW $2.1B
OTIS —
FY18
ITW $2.4B
OTIS $1.4B
FY19
ITW $2.7B
OTIS $1.3B
FY20
ITW $2.6B
OTIS $1.3B
FY21
ITW $2.3B
OTIS $1.6B
FY22
ITW $1.9B
OTIS $1.4B
FY23
ITW $3.1B
OTIS $1.5B
FY24
ITW $2.8B
OTIS $1.4B
FY25
ITW $2.7B
OTIS $1.4B
ITW
OTIS
Return on capital
FY16
ITW 22.3%
OTIS —
FY17
ITW 18.5%
OTIS —
FY18
ITW 28.6%
OTIS —
FY19
ITW 29.1%
OTIS —
FY20
ITW 25.1%
OTIS —
FY21
ITW 29.0%
OTIS 91.1%
FY22
ITW 28.5%
OTIS 88.2%
FY23
ITW 28.2%
OTIS —
FY24
ITW 31.0%
OTIS —
FY25
ITW 30.2%
OTIS 116.6%
ITW
OTIS
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.