Contrasting Illinois Tool Works (NYSE:ITW) & Xometry (NASDAQ:XMTR)

Xometry (NASDAQ:XMTR) and Illinois Tool Works (NYSE:ITW) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their risk, valuation, institutional ownership, earnings, dividends, profitability and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Xometry	-9.80%	-6.59%	-2.80%
Illinois Tool Works	19.05%	93.26%	19.30%

Volatility and Risk

Xometry has a beta of 0.86, meaning that its stock price is 14% less volatile than the S&P 500. Comparatively, Illinois Tool Works has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.

Valuation and Earnings

This table compares Xometry and Illinois Tool Works”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Xometry	$545.53 million	5.56	-$50.40 million	($1.25)	-47.34
Illinois Tool Works	$15.90 billion	4.61	$3.49 billion	$10.31	24.48

Illinois Tool Works has higher revenue and earnings than Xometry. Xometry 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 breakdown of recent ratings for Xometry and Illinois Tool Works, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Xometry	1	4	5	0	2.40
Illinois Tool Works	4	7	2	0	1.85

Xometry presently has a consensus target price of $57.89, indicating a potential downside of 2.18%. Illinois Tool Works has a consensus target price of $259.25, indicating a potential upside of 2.71%. Given Illinois Tool Works’ higher possible upside, analysts plainly believe Illinois Tool Works is more favorable than Xometry.

Insider & Institutional Ownership

97.3% of Xometry shares are held by institutional investors. Comparatively, 79.8% of Illinois Tool Works shares are held by institutional investors. 9.7% of Xometry shares are held by company insiders. Comparatively, 0.9% of Illinois Tool Works shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Illinois Tool Works beats Xometry on 9 of the 14 factors compared between the two stocks.

About Xometry

Xometry, Inc. operates an online marketplace that enables buyers to source custom-manufactured parts and assemblies in the United States and internationally. It provides computer numerical control manufacturing, sheet metal forming, and sheet cutting; 3D printing, including fused deposition modeling, direct metal laser sintering, PolyJet, stereolithography, selective laser sintering, binder jetting, carbon digital light synthesis, multi jet fusion, and lubricant sublayer photo-curing; and die casting, stamping, injection molding, urethane casting, tube cutting, and tube bending, as well as finishing services, rapid prototyping, and high-volume production services. It serves aerospace, healthcare, robotics, industrial, defense, energy, automotive, government, education, and consumer goods industries. The company was formerly known as NextLine Manufacturing Corp. and changed its name to Xometry, Inc. in June 2015. Xometry, Inc. was incorporated in 2013 and is headquartered in North Bethesda, Maryland.

About Illinois Tool Works

Illinois Tool Works Inc. manufactures and sells industrial products and equipment in the United States and internationally. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM segment offers plastic and metal components, fasteners, and assemblies for automobiles, light trucks, and other industrial uses. The Food Equipment segment provides warewashing, refrigeration, cooking, and food processing equipment; kitchen exhaust, ventilation, and pollution control systems; and food equipment maintenance and repair services. The Test & Measurement and Electronics segment produces and sells equipment, consumables, and related software for testing and measuring of materials and structures, as well as equipment and consumables used in the production of electronic subassemblies and microelectronics. The Welding segment produces arc welding equipment; and metal arc welding consumables and related accessories. 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 offers engineered fastening systems and solutions for the residential construction, renovation/remodel, and commercial construction markets. The Specialty Products segment provides beverage packaging equipment and consumables, product coding and marking equipment and consumables, and appliance components and fasteners. It serves the automotive OEM and tiers, MRO, commercial food equipment, construction, general industrial, industrial capital goods, consumer durables, automotive aftermarket end, and other markets. The company distributes its products directly to industrial manufacturers, as well as through independent distributors. Illinois Tool Works Inc. was founded in 1912 and is based in Glenview, Illinois.