Head to Head Analysis: Illinois Tool Works (NYSE:ITW) and Taylor Devices (NASDAQ:TAYD)

Illinois Tool Works (NYSE:ITW) and Taylor Devices (NASDAQ:TAYD) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.

Risk and Volatility

Illinois Tool Works has a beta of 1.11, meaning that its share price is 11% more volatile than the S&P 500. Comparatively, Taylor Devices has a beta of 0.97, meaning that its share price is 3% less volatile than the S&P 500.

Institutional & Insider Ownership

79.8% of Illinois Tool Works shares are held by institutional investors. Comparatively, 17.6% of Taylor Devices shares are held by institutional investors. 0.9% of Illinois Tool Works shares are held by company insiders. Comparatively, 8.9% of Taylor Devices shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Illinois Tool Works	19.05%	93.26%	19.30%
Taylor Devices	20.04%	14.90%	13.00%

Earnings and Valuation

This table compares Illinois Tool Works and Taylor Devices”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Illinois Tool Works	$15.88 billion	4.49	$3.49 billion	$10.31	23.87
Taylor Devices	$44.59 million	3.14	$9.41 million	$2.85	15.61

Illinois Tool Works has higher revenue and earnings than Taylor Devices. Taylor Devices 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 Illinois Tool Works and Taylor Devices, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Illinois Tool Works	4	7	2	0	1.85
Taylor Devices	0	1	0	0	2.00

Illinois Tool Works currently has a consensus target price of $262.00, indicating a potential upside of 6.46%. Given Illinois Tool Works’ higher possible upside, equities analysts plainly believe Illinois Tool Works is more favorable than Taylor Devices.

Summary

Illinois Tool Works beats Taylor Devices on 11 of the 14 factors compared between the two stocks.

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.

About Taylor Devices

Taylor Devices, Inc. engages in design, development, manufacture, and marketing of shock absorption, rate control, and energy storage devices for use in machinery, equipment, and structures in the United States, Asia, and internationally. Its products include seismic dampers that are designed to mitigate the effects of earthquakes on structures; Fluidicshoks, which are compact shock absorbers primarily used in defense, aerospace, and commercial industries; and crane and industrial buffers, which are larger versions of the Fluidicshoks for industrial application on cranes and crane trolleys, truck docks, ladle and ingot cars, ore trolleys, and train car stops. The company's products also comprise self-adjusting shock absorbers that include versions of Fluidicshoks, and crane and industrial buffers, which automatically adjust to various impact conditions and are designed for high cycle application primarily in the heavy industry; liquid die springs that are used as component parts of machinery and equipment used in the manufacture of tools and dies; vibration dampers, which are primarily used by aerospace and defense industries to control the response of electronics and optical systems subjected to air, ship, or spacecraft vibration; machined springs used in the aerospace applications; and custom actuators for special aerospace and defense applications. It markets its products through a network of sales representatives and distributors. The company was incorporated in 1955 and is headquartered in North Tonawanda, New York.