Illinois Tool Works (NYSE:ITW) vs. Omnitek Engineering (OTCMKTS:OMTK) Financial Review

Omnitek Engineering (OTCMKTS:OMTK) and Illinois Tool Works (NYSE:ITW) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their analyst recommendations, valuation, institutional ownership, dividends, profitability, earnings and risk.

Insider & Institutional Ownership

79.8% of Illinois Tool Works shares are owned by institutional investors. 45.5% of Omnitek Engineering shares are owned by insiders. Comparatively, 0.9% of Illinois Tool Works shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Omnitek Engineering has a beta of 0.11, suggesting that its share price is 89% less volatile than the S&P 500. Comparatively, Illinois Tool Works has a beta of 1.13, suggesting that its share price is 13% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Omnitek Engineering	18.80%	-22.26%	28.98%
Illinois Tool Works	19.11%	95.16%	19.22%

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Omnitek Engineering	$1.02 million	0.30	-$170,000.00	$0.02	0.69
Illinois Tool Works	$16.04 billion	4.78	$3.07 billion	$10.49	25.39

Illinois Tool Works has higher revenue and earnings than Omnitek Engineering. Omnitek Engineering 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 Ratings

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Omnitek Engineering	0	0	0	0	0.00
Illinois Tool Works	5	7	2	0	1.79

Illinois Tool Works has a consensus target price of $275.69, indicating a potential upside of 3.51%. Given Illinois Tool Works’ stronger consensus rating and higher possible upside, analysts plainly believe Illinois Tool Works is more favorable than Omnitek Engineering.

Summary

Illinois Tool Works beats Omnitek Engineering on 12 of the 14 factors compared between the two stocks.

About Omnitek Engineering

Omnitek Engineering Corp. develops and sells technology to convert diesel engines to an alternative fuel, natural gas engines, and complementary products in the United States and internationally. It offers conversion kits for converting diesel engines to run on an alternative fuel, including compressed, liquefied, and renewable natural gas, as well as liquid petroleum gas; natural gas engines and components; and high-pressure natural gas coalescing filters. The company's products are used for stationary applications; and the transportation market, such as light commercial vehicles, minibuses, heavy-duty trucks, and municipal buses, as well as rail and marine applications. It sells and delivers its products through its distributors, system integrators, fleet operators, and engine conversion companies, as well as directly to end-users. The company was incorporated in 2001 and is headquartered in Vista, California.

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.