Head-To-Head Contrast: Illinois Tool Works (NYSE:ITW) & Commercial Vehicle Group (NASDAQ:CVGI)

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

Institutional & Insider Ownership

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

Profitability

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

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

Earnings & Valuation

This table compares Commercial Vehicle Group and Illinois Tool Works”s gross revenue, earnings per share (EPS) and valuation.

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

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

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

Analyst Recommendations

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

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

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

Summary

Illinois Tool Works beats Commercial Vehicle Group on 9 of the 13 factors compared between the two stocks.

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.

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.