ITW vs. BRO

Last updated Jun 3, 2026

ITW (Illinois Tool Works Inc.) and BRO (Brown & Brown, Inc.) are both stocks. ITW operates in Specialty Industrial Machinery (Industrials), while BRO operates in Insurance Brokers (Financial Services). Over the past 10 years, ITW returned 11.36%/yr vs 13.13%/yr for BRO. At a 0.33 correlation, their price movements are largely independent.

Performance

ITW vs. BRO - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Illinois Tool Works Inc. (ITW) and Brown & Brown, Inc. (BRO). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ITW achieves a 1.56% return, which is significantly higher than BRO's -28.62% return. Over the past 10 years, ITW has underperformed BRO with an annualized return of 11.36%, while BRO has yielded a comparatively higher 13.13% annualized return.

ITW

• 1D: 1.13%
• 1M: -2.70%
• YTD: 1.56%
• 6M: 1.36%
• 1Y: 5.04%
• 3Y*: 5.19%
• 5Y*: 3.58%
• 10Y*: 11.36%

BRO

• 1D: -0.68%
• 1M: -1.52%
• YTD: -28.62%
• 6M: -28.75%
• 1Y: -49.65%
• 3Y*: -3.23%
• 5Y*: 2.31%
• 10Y*: 13.13%

*Multi-year figures are annualized to reflect compound growth (CAGR)

ITW vs. BRO - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ITW Illinois Tool Works Inc.	1.56%	-0.43%	-0.97%	21.56%	-8.46%	23.60%	16.42%	45.60%	-22.10%	38.92%
BRO Brown & Brown, Inc.	-28.62%	-21.37%	44.32%	25.73%	-18.39%	49.31%	21.06%	44.67%	8.30%	16.15%

Correlation

The correlation between ITW and BRO is 0.18, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.18
Correlation (3Y) Calculated over the trailing 3-year period	0.33
Correlation (5Y) Calculated over the trailing 5-year period	0.44
Correlation (10Y) Calculated over the trailing 10-year period	0.46
Correlation (All Time) Calculated using the full available price history since Mar 4, 1992	0.33

The correlation between ITW and BRO shifts across timeframes, from 0.18 (1 year) to 0.46 (10 years), reflecting how their relationship changes across market environments.

Fundamentals

EPS ITW : $14.33 BRO : $4.76
PE Ratio ITW : 17.35 BRO : 11.88
PEG Ratio ITW : 2.88 BRO : 0.87
PS Ratio ITW : 3.35 BRO : 2.12
Total Revenue (TTM) ITW : $16.22B BRO : $6.43B
Gross Profit (TTM) ITW : $7.16B BRO : $3.82B
EBITDA (TTM) ITW : $4.61B BRO : $1.51B

Return for Risk

ITW vs. BRO — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ITW

ITW Risk / Return Rank: 45
ITW Sharpe Ratio Rank: 49
ITW Sortino Ratio Rank: 42
ITW Omega Ratio Rank: 41
ITW Calmar Ratio Rank: 46
ITW Martin Ratio Rank: 46

BRO

BRO Risk / Return Rank: 2
BRO Sharpe Ratio Rank: 0
BRO Sortino Ratio Rank: 1
BRO Omega Ratio Rank: 1
BRO Calmar Ratio Rank: 3
BRO Martin Ratio Rank: 3

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ITW vs. BRO - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Illinois Tool Works Inc. (ITW) and Brown & Brown, Inc. (BRO). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	ITW	BRO	Difference
Sharpe ratio Return per unit of total volatility	0.25	-1.78	+2.03
Sortino ratio Return per unit of downside risk	0.52	-2.71	+3.22
Omega ratio Gain probability vs. loss probability	1.06	0.66	+0.40
Calmar ratio Return relative to maximum drawdown	0.23	-0.96	+1.19
Martin ratio Return relative to average drawdown	0.53	-1.63	+2.17
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ITW vs. BRO - Sharpe Ratio Comparison

The current ITW Sharpe Ratio is 0.25, which is higher than the BRO Sharpe Ratio of -1.78. The chart below compares the historical Sharpe Ratios of ITW and BRO, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ITW	BRO	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	0.25	-1.78	+2.03
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.17	0.09	+0.08
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.48	0.56	-0.08
Sharpe Ratio (All Time) Calculated using the full available price history	0.51	0.50	+0.01

Drawdowns

ITW vs. BRO - Drawdown Comparison

The maximum ITW drawdown since its inception was -54.90%, roughly equal to the maximum BRO drawdown of -55.85%. Use the drawdown chart below to compare losses from any high point for ITW and BRO.

Drawdown Indicators

	ITW	BRO	Difference
Max Drawdown Largest peak-to-trough decline	-54.90%	-55.85%	+0.95%
Max Drawdown (1Y) Largest decline over 1 year	-17.44%	-51.27%	+33.83%
Max Drawdown (3Y) Largest decline over 3 years	-20.63%	-55.85%	+35.22%
Max Drawdown (5Y) Largest decline over 5 years	-28.05%	-55.85%	+27.80%
Max Drawdown (10Y) Largest decline over 10 years	-37.85%	-55.85%	+18.00%
Current Drawdown Current decline from peak	-16.50%	-54.05%	+37.55%
Average Drawdown Average peak-to-trough decline	-9.83%	-13.50%	+3.67%
Ulcer Index Depth and duration of drawdowns from previous peaks	7.50%	30.24%	-22.74%

Volatility

ITW vs. BRO - Volatility Comparison

The current volatility for Illinois Tool Works Inc. (ITW) is 4.87%, while Brown & Brown, Inc. (BRO) has a volatility of 8.24%. This indicates that ITW experiences smaller price fluctuations and is considered to be less risky than BRO based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ITW	BRO	Difference
Volatility (1M) Calculated over the trailing 1-month period	4.87%	8.24%	-3.37%
Volatility (6M) Calculated over the trailing 6-month period	15.75%	21.22%	-5.47%
Volatility (1Y) Calculated over the trailing 1-year period	20.29%	27.93%	-7.64%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	21.08%	24.69%	-3.61%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	23.82%	23.63%	+0.19%

Dividends

ITW vs. BRO - Dividend Comparison

ITW's dividend yield for the trailing twelve months is around 2.55%, more than BRO's 1.14% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
BRO Brown & Brown, Inc.	1.14%	0.77%	0.53%	0.67%	0.74%	0.54%	0.73%	0.82%	1.11%	1.08%	1.12%	1.41%
ITW Illinois Tool Works Inc.	2.55%	2.53%	2.29%	2.07%	2.30%	1.91%	2.17%	2.30%	2.81%	1.71%	1.96%	2.23%

Financials

ITW vs. BRO - Profitability Comparison

The chart below illustrates the profitability comparison between Illinois Tool Works Inc. and Brown & Brown, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

ITW - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Illinois Tool Works Inc. reported a gross profit of 1.76B and revenue of 4.02B. Therefore, the gross margin over that period was 43.8%.

BRO - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Brown & Brown, Inc. reported a gross profit of 994.00M and revenue of 1.90B. Therefore, the gross margin over that period was 52.3%.

ITW - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Illinois Tool Works Inc. reported an operating income of 1.02B and revenue of 4.02B, resulting in an operating margin of 25.4%.

BRO - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Brown & Brown, Inc. reported an operating income of 0.00 and revenue of 1.90B, resulting in an operating margin of 0.0%.

ITW - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Illinois Tool Works Inc. reported a net income of 768.00M and revenue of 4.02B, resulting in a net margin of 19.1%.

BRO - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Brown & Brown, Inc. reported a net income of 426.00M and revenue of 1.90B, resulting in a net margin of 22.4%.

Frequently Asked Questions

Can I hold both ITW and BRO in my portfolio?

ITW and BRO have a correlation of 0.18, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ITW or BRO?

BRO has higher volatility (8.24%) compared to ITW (4.87%). In terms of maximum drawdown, ITW dropped -54.90% vs BRO's -55.85%.

Which has better risk-adjusted returns?

ITW currently has the higher Sharpe Ratio (0.25 vs -1.78), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.