Head-To-Head Comparison: Keyence (OTCMKTS:KYCCF) versus Illinois Tool Works (NYSE:ITW)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Keyence	N/A	N/A	N/A
Illinois Tool Works	19.32%	97.36%	19.41%

Risk & Volatility

Keyence has a beta of 1.35, meaning that its share price is 35% more volatile than the S&P 500. Comparatively, Illinois Tool Works has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500.

Institutional and Insider Ownership

79.8% of Illinois Tool Works shares are held by institutional investors. 0.8% 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 stock will outperform the market over the long term.

Earnings & Valuation

This table compares Keyence and Illinois Tool Works”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Keyence	$7.06 billion	16.82	$2.66 billion	N/A	N/A
Illinois Tool Works	$16.04 billion	4.74	$3.07 billion	$10.77	24.55

Illinois Tool Works has higher revenue and earnings than Keyence.

Analyst Ratings

This is a summary of current ratings and recommmendations for Keyence and Illinois Tool Works, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Keyence	0	2	1	1	2.75
Illinois Tool Works	5	7	1	0	1.69

Illinois Tool Works has a consensus price target of $271.92, indicating a potential upside of 2.85%. Given Illinois Tool Works’ higher possible upside, analysts clearly believe Illinois Tool Works is more favorable than Keyence.

Summary

Illinois Tool Works beats Keyence on 8 of the 12 factors compared between the two stocks.

About Keyence

Keyence Corporation, together with its subsidiaries, engages in the development, manufacture, and sale of factory automation solutions in Japan, China, the United States, and internationally. The company offers photoelectric, fiber optic, laser, positioning, vision, specific solution, and inductive proximity sensors, as well as network communication units. It also provides measurement sensors, such as laser displacement and profiler, optical/laser micrometer, inductive displacement sensor, 3D interference measurement, spectral interference displacement, and contact displacement/LVDT sensors; and measurement systems, including optical comparators, 3D scanners, multisensor measurement, and CMM/laser trackers. In addition, the company provides safety products comprising safety laser scanners, light curtains, interlock switches, and controllers; and pressure, flow, level, and temperature sensors for monitoring equipment processes. Further, it offers static eliminators/ionizers and electrostatic sensors, which protect workers, machinery, and products from the damaging effects of electrostatic charge; vision systems and sensors; and programmable logic controllers, servo motor and system, and other controls that are used for machine control applications. Additionally, the company provides barcode and handheld scanners; laser marking systems/laser markers, UV laser coder, and industrial continuous inkjet printers; digital, 3D surface profilers, elemental analyzers, optical profilometers, and fluorescence microscopes; data loggers; and mobile/ handheld computers. It serves customers in automotive, semiconductors/LCDs, electronic devices, food/pharmaceutical, medical technology, logistics, metals, plastics, and films/sheets industries. Keyence Corporation was founded in 1972 and is headquartered in Osaka, Japan.

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.