Illinois Tool Works Inc. vs Merck & Co., Inc. — how do they compare? Illinois Tool Works Inc. trades at $293.28 (market cap $83.49B), while Merck & Co., Inc. trades at $130.2 (market cap $321.77B). The key difference: Merck & Co., Inc. is far larger — about 3.9× Illinois Tool Works Inc.'s market cap, and Merck & Co., Inc. pays the higher dividend (2.61%). Which is the better fit depends on your goals.
| ITW | MRK | |
|---|---|---|
Market Cap | $83.49B | $321.77B |
Sector | Industrials | Health |
52-Week High | $299.60 | $131.84 |
52-Week Low | $241.07 | $77.60 |
Enterprise Value | $92.34B | $368.53B |
Dividend Yield | 2.35% | 2.61% |
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Merck (MRK) trades at $130.90, up 1.81% on the day, with a bullish technical outlook and strong institutional support. Recent earnings beats in Q4 2025 and Q1-Q2 2026, alongside a 28.07% net income margin in 2025, highlight operational strength. The acquisition of Terns Pharmaceuticals aims to bolster its oncology pipeline, though a high P/E of 104.74 signals premium valuation. Cash flow remains positive at $1.37B in 2025, but investing outflows have increased.
The stock offers growth potential from pipeline expansion and analyst consensus targeting $140.36, but risks include elevated debt-to-asset ratios (36.06% in 2025) and competitive pressures. Investors should weigh robust profitability against valuation concerns and macroeconomic headwinds affecting the pharma sector.
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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 →Merck makes pharmaceutical products to treat several conditions in a number of therapeutic areas, including cardiometabolic disease, cancer, and infections. Within cancer, the firm's immuno-oncology platform is growing as a major contributor to overall sales. The company also has a substantial vaccine business, with treatments to prevent hepatitis B and pediatric diseases as well as HPV and shingles. Additionally, Merck sells animal health-related drugs. From a geographical perspective, just under half of the firm's sales are generated in the United States.
Read more on MRK →