ITW vs. O
ITW (Illinois Tool Works Inc.) and O (Realty Income Corporation) are both stocks. ITW operates in Specialty Industrial Machinery (Industrials), while O operates in REIT - Retail (Real Estate). Over the past 10 years, ITW returned 11.44%/yr vs 4.43%/yr for O. At a 0.32 correlation, their price movements are largely independent.
Performance
ITW vs. O - Performance Comparison
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Returns By Period
In the year-to-date period, ITW achieves a 3.12% return, which is significantly lower than O's 8.78% return. Over the past 10 years, ITW has outperformed O with an annualized return of 11.44%, while O has yielded a comparatively lower 4.43% annualized return.
ITW
- 1D
- -0.13%
- 1M
- -0.93%
- YTD
- 3.12%
- 6M
- 3.02%
- 1Y
- 4.53%
- 3Y*
- 4.47%
- 5Y*
- 4.08%
- 10Y*
- 11.44%
O
- 1D
- -1.36%
- 1M
- -2.66%
- YTD
- 8.78%
- 6M
- 7.49%
- 1Y
- 13.14%
- 3Y*
- 5.19%
- 5Y*
- 2.41%
- 10Y*
- 4.43%
ITW vs. O - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
ITW Illinois Tool Works Inc. | 3.12% | -0.43% | -0.97% | 21.56% | -8.46% | 23.60% | 16.42% | 45.60% | -22.10% | 38.92% |
O Realty Income Corporation | 8.78% | 12.20% | -2.11% | -4.55% | -7.38% | 23.95% | -11.60% | 21.27% | 15.94% | 3.67% |
Correlation
The correlation between ITW and O is 0.28, which is low. Their price movements are largely independent, making them effective diversification partners.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.28 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.32 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.40 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.31 |
Correlation (All Time) Calculated using the full available price history since Oct 18, 1994 | 0.32 |
The correlation between ITW and O shifts across timeframes, from 0.28 (1 year) to 0.40 (5 years), reflecting how their relationship changes across market environments.
Fundamentals
ITW:
$14.33
O:
$1.17
ITW:
17.61
O:
51.10
ITW:
2.92
O:
4.16
ITW:
3.40
O:
6.91
ITW:
$16.22B
O:
$5.92B
ITW:
$7.16B
O:
$3.89B
ITW:
$4.61B
O:
$3.93B
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Return for Risk
ITW vs. O — Risk / Return Rank
ITW
O
ITW vs. O - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Illinois Tool Works Inc. (ITW) and Realty Income Corporation (O). 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 | O | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.60 | ||
| Sortino ratioReturn per unit of downside risk | -0.69 | ||
| Omega ratioGain probability vs. loss probability | 1.06 | 1.14 | -0.09 |
| Calmar ratioReturn relative to maximum drawdown | 0.26 | 1.19 | -0.93 |
| Martin ratioReturn relative to average drawdown | 0.59 | 2.93 | -2.34 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| ITW | O | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | 0.22 | 0.82 | -0.60 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | 0.19 | 0.13 | +0.07 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.48 | 0.17 | +0.31 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.51 | 0.48 | +0.03 |
Drawdowns
ITW vs. O - Drawdown Comparison
The maximum ITW drawdown since its inception was -54.90%, which is greater than O's maximum drawdown of -48.45%. Use the drawdown chart below to compare losses from any high point for ITW and O.
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Drawdown Indicators
| ITW | O | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -54.90% | -48.45% | -6.45% |
Max Drawdown (1Y)Largest decline over 1 year | -17.44% | -11.10% | -6.34% |
Max Drawdown (3Y)Largest decline over 3 years | -20.63% | -26.49% | +5.86% |
Max Drawdown (5Y)Largest decline over 5 years | -28.05% | -34.48% | +6.43% |
Max Drawdown (10Y)Largest decline over 10 years | -37.85% | -48.28% | +10.43% |
Current DrawdownCurrent decline from peak | -15.22% | -10.00% | -5.22% |
Average DrawdownAverage peak-to-trough decline | -9.83% | -9.21% | -0.62% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 7.75% | 4.50% | +3.25% |
Volatility
ITW vs. O - Volatility Comparison
The current volatility for Illinois Tool Works Inc. (ITW) is 3.43%, while Realty Income Corporation (O) has a volatility of 4.81%. This indicates that ITW experiences smaller price fluctuations and is considered to be less risky than O based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| ITW | O | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 3.43% | 4.81% | -1.38% |
Volatility (6M)Calculated over the trailing 6-month period | 15.75% | 11.89% | +3.86% |
Volatility (1Y)Calculated over the trailing 1-year period | 20.29% | 16.10% | +4.19% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 21.07% | 18.89% | +2.18% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 23.81% | 25.64% | -1.83% |
Dividends
ITW vs. O - Dividend Comparison
ITW's dividend yield for the trailing twelve months is around 2.51%, less than O's 5.39% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
ITW Illinois Tool Works Inc. | 2.51% | 2.53% | 2.29% | 2.07% | 2.30% | 1.91% | 2.17% | 2.30% | 2.81% | 1.71% | 1.96% | 2.23% |
O Realty Income Corporation | 5.39% | 6.19% | 5.37% | 5.33% | 4.68% | 3.87% | 4.51% | 3.69% | 4.19% | 4.45% | 4.18% | 4.41% |
Financials
ITW vs. O - Financials Comparison
This section allows you to compare key financial metrics between Illinois Tool Works Inc. and Realty Income Corporation. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
ITW vs. O - Profitability Comparison
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%.
O - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Realty Income Corporation reported a gross profit of 0.00 and revenue of 1.55B. Therefore, the gross margin over that period was 0.0%.
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%.
O - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Realty Income Corporation reported an operating income of 0.00 and revenue of 1.55B, 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%.
O - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Realty Income Corporation reported a net income of -9.17M and revenue of 1.55B, resulting in a net margin of -0.6%.
Frequently Asked Questions
ITW and O have a correlation of 0.28, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
O has higher volatility (4.81%) compared to ITW (3.43%). In terms of maximum drawdown, ITW dropped -54.90% vs O's -48.45%.
O currently has the higher Sharpe Ratio (0.82 vs 0.22), 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.
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