SCL vs. ITW
SCL (Stepan Company) and ITW (Illinois Tool Works Inc.) are both stocks. SCL operates in Specialty Chemicals (Basic Materials), while ITW operates in Specialty Industrial Machinery (Industrials). Over the past 10 years, SCL returned -0.19%/yr vs 11.44%/yr for ITW. At a 0.37 correlation, their price movements are largely independent.
Performance
SCL vs. ITW - Performance Comparison
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Returns By Period
In the year-to-date period, SCL achieves a 10.27% return, which is significantly higher than ITW's 3.12% return. Over the past 10 years, SCL has underperformed ITW with an annualized return of -0.19%, while ITW has yielded a comparatively higher 11.44% annualized return.
SCL
- 1D
- 0.29%
- 1M
- -2.10%
- YTD
- 10.27%
- 6M
- 17.06%
- 1Y
- -3.04%
- 3Y*
- -17.43%
- 5Y*
- -15.44%
- 10Y*
- -0.19%
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%
SCL vs. ITW - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
SCL Stepan Company | 10.27% | -24.60% | -30.29% | -9.74% | -12.91% | 5.24% | 17.75% | 39.96% | -5.21% | -2.06% |
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% |
Correlation
The correlation between SCL and ITW is 0.56, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.56 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.58 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.58 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.57 |
Correlation (All Time) Calculated using the full available price history since Mar 18, 1992 | 0.37 |
The correlation between SCL and ITW shifts across timeframes, from 0.37 (all time) to 0.58 (5 years), reflecting how their relationship changes across market environments.
Fundamentals
SCL:
-$0.62
ITW:
$14.33
SCL:
0.50
ITW:
3.40
SCL:
$2.34B
ITW:
$16.22B
SCL:
$259.28M
ITW:
$7.16B
SCL:
$96.49M
ITW:
$4.61B
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Return for Risk
SCL vs. ITW — Risk / Return Rank
SCL
ITW
SCL vs. ITW - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Stepan Company (SCL) and Illinois Tool Works Inc. (ITW). 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.
| SCL | ITW | Difference | |
|---|---|---|---|
| Sharpe ratioReturn per unit of total volatility | -0.31 | ||
| Sortino ratioReturn per unit of downside risk | -0.35 | ||
| Omega ratioGain probability vs. loss probability | 1.02 | 1.06 | -0.04 |
| Calmar ratioReturn relative to maximum drawdown | -0.09 | 0.26 | -0.35 |
| Martin ratioReturn relative to average drawdown | -0.16 | 0.59 | -0.74 |
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
| SCL | ITW | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | -0.08 | 0.22 | -0.31 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.51 | 0.19 | -0.71 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | -0.01 | 0.48 | -0.49 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.25 | 0.51 | -0.26 |
Drawdowns
SCL vs. ITW - Drawdown Comparison
The maximum SCL drawdown since its inception was -66.78%, which is greater than ITW's maximum drawdown of -54.90%. Use the drawdown chart below to compare losses from any high point for SCL and ITW.
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Drawdown Indicators
| SCL | ITW | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -66.78% | -54.90% | -11.88% |
Max Drawdown (1Y)Largest decline over 1 year | -32.78% | -17.44% | -15.34% |
Max Drawdown (3Y)Largest decline over 3 years | -54.78% | -20.63% | -34.15% |
Max Drawdown (5Y)Largest decline over 5 years | -65.22% | -28.05% | -37.17% |
Max Drawdown (10Y)Largest decline over 10 years | -66.78% | -37.85% | -28.93% |
Current DrawdownCurrent decline from peak | -58.63% | -15.22% | -43.41% |
Average DrawdownAverage peak-to-trough decline | -16.99% | -9.83% | -7.16% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 19.37% | 7.75% | +11.62% |
Volatility
SCL vs. ITW - Volatility Comparison
Stepan Company (SCL) has a higher volatility of 6.53% compared to Illinois Tool Works Inc. (ITW) at 3.43%. This indicates that SCL's price experiences larger fluctuations and is considered to be riskier than ITW based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| SCL | ITW | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 6.53% | 3.43% | +3.10% |
Volatility (6M)Calculated over the trailing 6-month period | 30.83% | 15.75% | +15.08% |
Volatility (1Y)Calculated over the trailing 1-year period | 36.41% | 20.29% | +16.12% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 30.29% | 21.07% | +9.22% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 31.60% | 23.81% | +7.79% |
Dividends
SCL vs. ITW - Dividend Comparison
SCL's dividend yield for the trailing twelve months is around 3.05%, more than ITW's 2.51% 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% |
SCL Stepan Company | 3.05% | 3.27% | 2.33% | 1.55% | 1.63% | 1.01% | 0.95% | 1.00% | 1.25% | 1.06% | 0.95% | 1.47% |
Financials
SCL vs. ITW - Financials Comparison
This section allows you to compare key financial metrics between Stepan Company and Illinois Tool Works Inc.. 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
SCL vs. ITW - Profitability Comparison
SCL - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Stepan Company reported a gross profit of 64.85M and revenue of 604.51M. Therefore, the gross margin over that period was 10.7%.
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%.
SCL - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Stepan Company reported an operating income of -49.62M and revenue of 604.51M, resulting in an operating margin of -8.2%.
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%.
SCL - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Stepan Company reported a net income of -41.41M and revenue of 604.51M, resulting in a net margin of -6.9%.
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%.
Frequently Asked Questions
SCL and ITW have a correlation of 0.56, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
SCL has higher volatility (6.53%) compared to ITW (3.43%). In terms of maximum drawdown, SCL dropped -66.78% vs ITW's -54.90%.
ITW currently has the higher Sharpe Ratio (0.22 vs -0.08), 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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