Illinois Tool Works (NYSE:ITW) & Enpro (NYSE:NPO) Head to Head Contrast

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

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Enpro and Illinois Tool Works, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Enpro	0	2	3	0	2.60
Illinois Tool Works	5	7	1	0	1.69

Enpro currently has a consensus price target of $365.00, suggesting a potential upside of 29.23%. Illinois Tool Works has a consensus price target of $276.33, suggesting a potential downside of 4.20%. Given Enpro’s stronger consensus rating and higher possible upside, analysts plainly believe Enpro is more favorable than Illinois Tool Works.

Dividends

Enpro pays an annual dividend of $1.28 per share and has a dividend yield of 0.5%. Illinois Tool Works pays an annual dividend of $6.88 per share and has a dividend yield of 2.4%. Enpro pays out 43.8% of its earnings in the form of a dividend. Illinois Tool Works pays out 61.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Enpro has raised its dividend for 2 consecutive years and Illinois Tool Works has raised its dividend for 55 consecutive years. Illinois Tool Works is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

98.3% of Enpro shares are held by institutional investors. Comparatively, 79.8% of Illinois Tool Works shares are held by institutional investors. 1.6% of Enpro shares are held by insiders. Comparatively, 0.8% of Illinois Tool Works shares are held by 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Enpro	4.88%	12.55%	7.46%
Illinois Tool Works	19.39%	103.35%	19.74%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Enpro	$1.14 billion	5.23	$40.50 million	$2.92	96.72
Illinois Tool Works	$16.65 billion	4.92	$3.07 billion	$11.22	25.71

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

Volatility & Risk

Enpro has a beta of 1.64, indicating that its share price is 64% more volatile than the S&P 500. Comparatively, Illinois Tool Works has a beta of 0.92, indicating that its share price is 8% less volatile than the S&P 500.

Summary

Enpro beats Illinois Tool Works on 9 of the 17 factors compared between the two stocks.

About Enpro

Enpro Inc. is an industrial technology company that develops and manufactures products for demanding applications across a range of industries. Its businesses focus on sealing technologies and advanced surface technologies, serving markets that include semiconductor manufacturing, aerospace, life sciences, energy and commercial vehicles. Enpro’s sealing products include engineered seals, gaskets, packing and related components used to help control fluids and gases in industrial equipment and systems.

About Illinois Tool Works

Illinois Tool Works Inc. (NYSE: ITW) is a diversified manufacturer serving industrial and commercial customers around the world. Founded in 1912, the company is known for its decentralized operating model and focus on specialized products and solutions. ITW’s businesses make products and equipment for a range of markets, including automotive, food service, construction, welding, and testing and measurement. Its offerings include food-service equipment, welding systems and consumables, automotive components, construction products, polymers and fluids, and laboratory and electronics testing equipment.