Illinois Tool Works Inc. vs McDonald's Corp — how do they compare? Illinois Tool Works Inc. trades at $293.28 (market cap $83.88B), while McDonald's Corp trades at $273.93 (market cap $193.70B). The key difference: McDonald's Corp is far larger — about 2.3× Illinois Tool Works Inc.'s market cap, and McDonald's Corp pays the higher dividend (2.72%). Which is the better fit depends on your goals.
| ITW | MCD | |
|---|---|---|
Market Cap | $83.88B | $193.70B |
Sector | Industrials | Consumer Cyclical |
52-Week High | $299.60 | $341.06 |
52-Week Low | $241.07 | $262.80 |
Enterprise Value | $92.73B | $247.47B |
Dividend Yield | 2.34% | 2.72% |
Volume | — | 2,230,036 |
Signals from Pluang's Aura AI — not financial advice
ITW trades at $296.66, up 0.67% with a bullish technical outlook and strong support at $292. The company maintains robust profitability with 19.39% net margins and has beaten earnings estimates for three consecutive quarters. Recent positive developments include a 7% dividend increase and $6 billion share repurchase authorization announced August 7, 2026.
While valuation metrics appear elevated (P/E 26.87, P/B 29.19), ITW's consistent earnings performance and shareholder-friendly actions support upside to the $316 consensus target. Key risks include construction sector exposure and currency headwinds, but operational strength and margin discipline provide stability.
McDonald's (MCD) trades at $274.15, down slightly by 0.12% on the day, with technical indicators showing a neutral overall signal. The company demonstrates strong fundamentals with consistent revenue growth, reaching $26.89 billion in 2025, and robust profitability with a 31.72% net income margin. Recent earnings have consistently beaten expectations, and the company has announced a new global growth strategy focused on automation and menu innovation to drive future performance.
The outlook for MCD is positive, supported by strong analyst consensus with a $322.45 price target implying significant upside. Key opportunities include the successful execution of its new growth plan and its defensive qualities in a challenging economy. Primary risks involve inflationary pressures on franchisee margins and intense competition in the quick-service restaurant sector.
Trailing returns across standard periods
Latest headlines on both assets
Illinois Tool Works is a diversified global manufacturer that produces specialized industrial equipment, consumables, and related services. The firm operates 87 global divisions through seven distinct operating segments: automotive OEM, construction products, food equipment, specialty products, test/measurement and electronics, polymers and fluids, and welding. About half of its revenue comes from its operations in North America, with the remainder originating from international markets. ITW takes a bottom-up and decentralized approach to portfolio management, with the exception that each segment must apply its 80/20 operating process modeled on the Pareto principle.
Read more on ITW →McDonald's Corporation franchises and operates fast-food restaurants in the global restaurant industry. The Company's restaurants serves a variety of value-priced menu products in countries around the world.
Read more on MCD →