Reviewing Illinois Tool Works (NYSE:ITW) and Commercial Vehicle Group (NASDAQ:CVGI)

Illinois Tool Works (NYSE:ITW) and Commercial Vehicle Group (NASDAQ:CVGI) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, analyst recommendations, valuation, institutional ownership, dividends and risk.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Illinois Tool Works	$16.04 billion	4.76	$3.07 billion	$11.03	24.30
Commercial Vehicle Group	$649.00 million	0.20	-$22.78 million	($0.67)	-4.73

Illinois Tool Works has higher revenue and earnings than Commercial Vehicle Group. Commercial Vehicle 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 0.98, suggesting that its share price is 2% less volatile than the S&P 500. Comparatively, Commercial Vehicle Group has a beta of 1.38, suggesting that its share price is 38% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Illinois Tool Works	19.39%	101.72%	19.64%
Commercial Vehicle Group	-3.42%	-13.91%	-4.50%

Analyst Ratings

This is a summary of current ratings and target prices for Illinois Tool Works and Commercial Vehicle Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Illinois Tool Works	5	6	2	0	1.77
Commercial Vehicle Group	1	1	2	0	2.25

Illinois Tool Works currently has a consensus price target of $281.25, indicating a potential upside of 4.91%. Commercial Vehicle Group has a consensus price target of $6.00, indicating a potential upside of 89.27%. Given Commercial Vehicle Group’s stronger consensus rating and higher possible upside, analysts clearly believe Commercial Vehicle Group is more favorable than Illinois Tool Works.

Institutional & Insider Ownership

79.8% of Illinois Tool Works shares are held by institutional investors. Comparatively, 72.3% of Commercial Vehicle Group shares are held by institutional investors. 0.8% of Illinois Tool Works shares are held by insiders. Comparatively, 15.6% of Commercial Vehicle Group shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Illinois Tool Works beats Commercial Vehicle 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 Commercial Vehicle Group

Commercial Vehicle Group, Inc., together with its subsidiaries, designs, manufactures, assembles, and sells systems, assemblies, and components to commercial and electric vehicle, and industrial automation markets in North America, Europe, and the Asia-Pacific regions. The company operates in four segments: Vehicle Solutions, Electrical Systems, Aftermarket & Accessories, and Industrial Automation. It offers vehicle seats and seating systems, such as static, mechanical, and air suspension seats, as well as office seating products under KAB Seating, National Seating, Bostrom Seating, and Stratos brands. The company also provides thermoformed, injection molded, reaction injection molded, and decorated/hydrographic finished products; vinyl or cloth-covered appliqués; instrument panels; plastics decorating and finishing products; cab structures; and cab interiors, including armrests, grab handles, storage systems, floor coverings and mats, sleeper bunks, headliners, wall panels, and privacy curtains under the AdvancTEK brand. In addition, it offers high and low voltage electrical wire harness assemblies function as the primary electric current carrying devices used in providing electrical interconnections for gauges, lights, control functions, power circuits, powertrain and transmission sensors, emissions systems, and other electronic applications on commercial and other vehicles; and panel assemblies. Further, the company provides mirrors, wipers, and wiper systems under Bostrom, Moto Mirror, Sprague Devices, and RoadWatch brands; integrated and electro-mechanical assemblies, and cabinets. It offers its products and systems for the truck, power sports, bus, construction, mining, automotive, agricultural, mining, rail, marine, power generation, e-commerce, warehouse integration, transportation, military/defense, industrial, municipal, off-road recreational, and specialty vehicle markets. The company was incorporated in 2000 and is headquartered in New Albany, Ohio.