IMI (IMIAY) and Illinois Tool Works (ITW) Head to Head Analysis

IMI (OTCMKTS: IMIAY) and Illinois Tool Works (NYSE:ITW) are both construction companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, risk, earnings, profitability, institutional ownership, valuation and analyst recommendations.

Dividends

IMI pays an annual dividend of $1.05 per share and has a dividend yield of 4.4%. Illinois Tool Works pays an annual dividend of $3.12 per share and has a dividend yield of 2.0%. IMI pays out 80.8% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Illinois Tool Works pays out 47.3% of its earnings in the form of a dividend. Illinois Tool Works has increased its dividend for 54 consecutive years.

Earnings and Valuation

This table compares IMI and Illinois Tool Works’ gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
IMI $2.24 billion 1.44 $176.77 million $1.30 18.18
Illinois Tool Works $14.31 billion 3.78 $1.69 billion $6.59 24.02

Illinois Tool Works has higher revenue and earnings than IMI. IMI is trading at a lower price-to-earnings ratio than Illinois Tool Works, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of current recommendations and price targets for IMI and Illinois Tool Works, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
IMI 0 2 1 0 2.33
Illinois Tool Works 0 9 7 1 2.53

Illinois Tool Works has a consensus price target of $174.38, indicating a potential upside of 10.15%. Given Illinois Tool Works’ stronger consensus rating and higher probable upside, analysts plainly believe Illinois Tool Works is more favorable than IMI.

Insider & Institutional Ownership

77.6% of Illinois Tool Works shares are held by institutional investors. 0.9% of Illinois Tool Works shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

IMI has a beta of -0.13, suggesting that its stock price is 113% less volatile than the S&P 500. Comparatively, Illinois Tool Works has a beta of 1.24, suggesting that its stock price is 24% more volatile than the S&P 500.

Profitability

This table compares IMI and Illinois Tool Works’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
IMI N/A N/A N/A
Illinois Tool Works 11.79% 48.42% 14.17%

Summary

Illinois Tool Works beats IMI on 16 of the 17 factors compared between the two stocks.

About Illinois Tool Works

Illinois Tool Works Inc. is a manufacturer of industrial products and equipment. The Company operates through seven segments. The Automotive OEM segment produces components and fasteners for automotive-related applications. The Food Equipment segment offers commercial food equipment. The Test & Measurement and Electronics segment produces test and measurement, and electronic manufacturing and maintenance, repair and operations (MRO) solutions. The Welding segment produces welding equipment, consumables and accessories for industrial and commercial applications. The Polymers & Fluids segment produces adhesives, sealants, lubrication and cutting fluids, and fluids and polymers for auto aftermarket maintenance and appearance. The Construction Products segment supplies engineered fastening systems and solutions. The Specialty Products segment produces beverage packaging equipment and consumables, product coding and marking equipment and consumables, and appliance components and fasteners.

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