Illinois Tool Works (NYSE:ITW – Get Free Report) and Alta Equipment Group (NYSE:ALTG – Get Free Report) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, earnings, valuation, dividends, institutional ownership, profitability and risk.
Profitability
This table compares Illinois Tool Works and Alta Equipment Group’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Illinois Tool Works | 19.32% | 97.36% | 19.41% |
| Alta Equipment Group | -4.33% | -3,253.61% | -5.70% |
Analyst Recommendations
This is a summary of recent ratings and price targets for Illinois Tool Works and Alta Equipment Group, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Illinois Tool Works | 5 | 7 | 1 | 0 | 1.69 |
| Alta Equipment Group | 1 | 2 | 1 | 0 | 2.00 |
Valuation and Earnings
This table compares Illinois Tool Works and Alta Equipment Group”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Illinois Tool Works | $16.04 billion | 5.07 | $3.07 billion | $10.77 | 26.27 |
| Alta Equipment Group | $1.84 billion | 0.11 | -$80.30 million | ($2.53) | -2.55 |
Illinois Tool Works has higher revenue and earnings than Alta Equipment Group. Alta Equipment Group 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.
Volatility and Risk
Illinois Tool Works has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, Alta Equipment Group has a beta of 1.73, indicating that its share price is 73% more volatile than the S&P 500.
Institutional and Insider Ownership
79.8% of Illinois Tool Works shares are held by institutional investors. Comparatively, 73.6% of Alta Equipment Group shares are held by institutional investors. 0.8% of Illinois Tool Works shares are held by insiders. Comparatively, 20.5% of Alta Equipment Group shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
Summary
Illinois Tool Works beats Alta Equipment Group on 9 of the 13 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 Alta Equipment Group
Alta Equipment Group Inc. owns and operates integrated equipment dealership platforms in the United States. It operates through three segments: Material Handling, Construction Equipment, and Master Distribution. The company operates a branch network that sells, rents, and provides parts and service support for various categories of specialized equipment, including lift trucks and other material handling equipment, heavy and compact earthmoving equipment, crushing and screening equipment, environmental processing equipment, cranes and aerial work platforms, paving and asphalt equipment, and other construction equipment and related products. It also offers repair and maintenance services for its equipment. In addition, the company designs and builds warehouses; provides automated equipment installation and system integration solutions; and distributes environmental processing equipment. It serves various manufacturing, food and beverage, automotive, municipal/government, education, pharmaceutical and medical, wholesale and retail distribution, construction, agriculture, road building, mining, recycling, and waste management sectors. Alta Equipment Group Inc. was founded in 1984 and is headquartered in Livonia, Michigan.
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