Illinois Tool Works (NYSE:ITW) versus Enerflex (NYSE:EFXT) Head to Head Contrast

Illinois Tool Works (NYSE:ITWGet Rating) and Enerflex (NYSE:EFXTGet Rating) are both industrial products companies, but which is the better stock? We will contrast the two businesses based on the strength of their earnings, valuation, risk, dividends, institutional ownership, profitability and analyst recommendations.

Dividends

Illinois Tool Works pays an annual dividend of $5.24 per share and has a dividend yield of 2.2%. Enerflex pays an annual dividend of $0.07 per share and has a dividend yield of 1.0%. Illinois Tool Works pays out 59.8% of its earnings in the form of a dividend. Illinois Tool Works has increased its dividend for 59 consecutive years. Illinois Tool Works is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Illinois Tool Works and Enerflex’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Illinois Tool Works $14.46 billion 4.96 $2.69 billion $8.76 26.63
Enerflex N/A N/A N/A N/A N/A

Illinois Tool Works has higher revenue and earnings than Enerflex.

Analyst Ratings

This is a breakdown of current recommendations and price targets for Illinois Tool Works and Enerflex, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Illinois Tool Works 3 7 2 0 1.92
Enerflex 0 0 0 0 N/A

Illinois Tool Works currently has a consensus target price of $206.29, suggesting a potential downside of 11.56%. Enerflex has a consensus target price of $12.00, suggesting a potential upside of 65.52%. Given Enerflex’s higher probable upside, analysts clearly believe Enerflex is more favorable than Illinois Tool Works.

Profitability

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

Net Margins Return on Equity Return on Assets
Illinois Tool Works 17.49% 80.65% 17.34%
Enerflex N/A N/A N/A

Insider & Institutional Ownership

79.8% of Illinois Tool Works shares are owned by institutional investors. 0.8% of Illinois Tool Works shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Summary

Illinois Tool Works beats Enerflex on 9 of the 11 factors compared between the two stocks.

About Illinois Tool Works

(Get Rating)

Illinois Tool Works Inc. manufactures and sells industrial products and equipment worldwide. 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 offers beverage packaging equipment and consumables, product coding and marking equipment and consumables, and appliance components and fasteners. It serves the automotive OEM/tiers, commercial food equipment, construction, general industrial, and automotive aftermarket end 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 Enerflex

(Get Rating)

Enerflex Ltd. supplies natural gas compression, oil and gas processing, refrigeration systems, energy transition solutions, and electric power generation equipment to the oil and natural gas industry. The company provides custom and standard compression packages for reciprocating and screw compressor applications; and designs, engineers, manufactures, constructs, and installs modular natural gas processing equipment, refrigeration systems, and electric power solutions, as well as engages in re-engineering, re-configuration, and re-packaging of compressors for various field applications; and modular processing equipment and waste gas systems for natural gas facilities. It also offers after-market services, parts distribution, operations and maintenance solutions, equipment optimization and maintenance programs, manufacturer warranties, exchange components, long-term service agreements, and technical services. In addition, the company rents natural gas compressors totaling approximately 800,000 horsepower. It serves small to large independent producers, integrated oil and natural gas companies, midstream and petrochemical companies, power generation companies, users of natural gas-fired electric power, and carbon capture players in Canada, the United States, Argentina, Bolivia, Brazil, Colombia, Mexico, the United Kingdom, Bahrain Kuwait, Oman, the United Arab Emirates, Australia, New Zealand, Indonesia, Malaysia, and Thailand. Enerflex Ltd. was founded in 1980 and is headquartered in Calgary, Canada.

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