Illinois Tool Works vs Diageo

Diageo plc and Illinois Tool Works Inc. This page compares business models, financial performance and market context of the two companies in a neutral, accessible way. It presents high-level information to help readers understand similarities and differences without making recommendations. Educational content, not financial advice.

Diageo plc and Illinois Tool Works Inc. This page compares business models, financial performance and market context of the two companies in a neutral, accessible way. It presents high-level informati...

About The Companies

Illinois Tool Works (ITW)

Illinois Tool Works (ITW) is a diversified industrial manufacturer supplying engineered fasteners, components, consumables and equipment across automotive, construction, foodservice, electronics and other sectors. Its decentralised operating model gives autonomy to specialised business units, aiming to drive margin expansion and operational efficiency, while corporate steers capital allocation and strategy. ITW is known for steady free cash flow, a long-running dividend and disciplined share buybacks, often supplemented by targeted acquisitions. Strengths include a broad product mix, pricing power in niche markets and proven cash generation. Key risks are economic cyclicality, commodity and freight cost volatility, currency movements and integration risks from acquisitions. Valuation and short-term performance can be sensitive to macro conditions. This summary is general educational information, not personalised advice — investors should consider their own goals and risk tolerance before acting.

Diageo (DEO)

Diageo plc (ticker: DEO) is a major global producer and distributor of alcoholic beverages, known for household brands such as Johnnie Walker, Smirnoff, Guinness and Baileys. With a market capitalisation around $54.8 billion, the company benefits from scale, extensive global distribution and a focus on premium and above-premium segments — areas that historically generate higher margins. Revenue drivers include brand strength, pricing, product mix and channel shifts (on-trade, off-trade, travel retail and e-commerce). Investors should note exposure to currency fluctuations, excise and regulatory changes, and evolving consumer tastes across regions. Diageo’s steady cash generation has supported dividend payments and reinvestment in marketing and innovation, though past performance is not a guarantee of future returns. This summary is for general educational purposes only and not personalised investment advice; investors should consider their own objectives and consult a financial professional before acting.

Comparison Snapshot

Key Financial Metrics

ITW

Metric

DEO

$74.67B

Market Cap

$49.03B

1.13%

Potential Profit

20.95%

Hold

Analyst Rating

Buy

Why It's Moving

Illinois Tool Works Raises Dividend and Posts Strong Margin Expansion Amid Mixed Revenue Growth

Q3 2025 revenue rose 2% to $4.1 billion with organic growth of 1%, slightly below some analyst expectations, indicating steady but modest demand in core markets.
Operating margin expanded to a record 27.4%, up 90 basis points, driven by successful enterprise initiatives adding 140 basis points, signaling strong operational efficiency improvements.
The Board approved a 7% increase in the quarterly dividend to $1.61 per share—the 62nd consecutive dividend raise—alongside $375 million in share buybacks, highlighting robust free cash flow and commitment to shareholder returns.

Sentiment:

⚖️Neutral

Diageo Shares Dip to New 52-Week Low Amid Analyst Downgrades and Sector Headwinds

Shares fell about 2.2% to $85.71, marking a new 52-week low, reflecting investor concerns over near-term growth challenges.
Multiple analysts downgraded or reiterated neutral and sell ratings recently, with consensus moving toward a 'Reduce' stance and price targets cut notably.
Institutional investors like Raymond James and Envestnet are selectively accumulating shares on the dip, suggesting confidence in long-term fundamentals despite short-term headwinds.

Sentiment:

🐻Bearish

Illinois Tool Works Raises Dividend and Posts Strong Margin Expansion Amid Mixed Revenue Growth

Q3 2025 revenue rose 2% to $4.1 billion with organic growth of 1%, slightly below some analyst expectations, indicating steady but modest demand in core markets.
Operating margin expanded to a record 27.4%, up 90 basis points, driven by successful enterprise initiatives adding 140 basis points, signaling strong operational efficiency improvements.
The Board approved a 7% increase in the quarterly dividend to $1.61 per share—the 62nd consecutive dividend raise—alongside $375 million in share buybacks, highlighting robust free cash flow and commitment to shareholder returns.

Sentiment:

⚖️Neutral

Diageo Shares Dip to New 52-Week Low Amid Analyst Downgrades and Sector Headwinds

Shares fell about 2.2% to $85.71, marking a new 52-week low, reflecting investor concerns over near-term growth challenges.
Multiple analysts downgraded or reiterated neutral and sell ratings recently, with consensus moving toward a 'Reduce' stance and price targets cut notably.
Institutional investors like Raymond James and Envestnet are selectively accumulating shares on the dip, suggesting confidence in long-term fundamentals despite short-term headwinds.

Sentiment:

🐻Bearish

Which Baskets Do They Appear In?

EU Tariff Cuts: Which US Companies May Benefit?

A new trade agreement between the U.S. and the European Union reduces tariffs, creating new opportunities for American exporters. This theme focuses on U.S. industrial, agricultural, and seafood companies poised to benefit from increased access to European markets.

Published: August 22, 2025

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US Companies Shielded from Fed Tariff Stance 2025

The Federal Reserve is holding interest rates steady, signaling that tariff-induced inflation is a primary concern, even over potential employment risks. This creates an investment opportunity in companies that are insulated from international trade disputes and can maintain pricing power during inflationary periods.

Published: August 21, 2025

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Navigating Tariff-Driven Inflation

Recent data shows core inflation rising due to new tariffs, creating a complex situation for the Federal Reserve. This highlights an investment opportunity in companies that can thrive in an inflationary environment, particularly those with domestic operations and the ability to set prices.

Published: August 13, 2025

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Which Baskets Do They Appear In?

EU Tariff Cuts: Which US Companies May Benefit?

A new trade agreement between the U.S. and the European Union reduces tariffs, creating new opportunities for American exporters. This theme focuses on U.S. industrial, agricultural, and seafood companies poised to benefit from increased access to European markets.

Published: August 22, 2025

Explore Basket

US Companies Shielded from Fed Tariff Stance 2025

The Federal Reserve is holding interest rates steady, signaling that tariff-induced inflation is a primary concern, even over potential employment risks. This creates an investment opportunity in companies that are insulated from international trade disputes and can maintain pricing power during inflationary periods.

Published: August 21, 2025

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Navigating Tariff-Driven Inflation

Recent data shows core inflation rising due to new tariffs, creating a complex situation for the Federal Reserve. This highlights an investment opportunity in companies that can thrive in an inflationary environment, particularly those with domestic operations and the ability to set prices.

Published: August 13, 2025

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The Domestic Advantage: Tariff-Resistant Industrials

Ford has lowered its annual profit forecast due to the financial impact of U.S. tariffs, creating a potential advantage for companies with resilient domestic supply chains. This theme identifies businesses that are well-positioned to outperform in a protectionist trade environment.

Published: July 31, 2025

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U.S. Exporters Target Indonesian Growth

The United States and Indonesia have announced a landmark trade agreement, eliminating tariffs on over 99% of U.S. exports. This deal creates a significant opportunity for American companies in the industrial, food, and technology sectors to expand into a large and growing market.

Published: July 23, 2025

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Skills Over Scrolls: The Trade School Boom

Mike Rowe's proposal to redirect federal grants from elite universities to trade schools could reshape education funding in America. This carefully selected group of stocks includes companies that stand to benefit if billions flow into vocational training—from tool manufacturers to trade schools themselves.

Published: July 1, 2025

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Forever Products

Invest in companies whose brand names are synonymous with generational quality and durability. These carefully selected stocks represent businesses that have built their reputations on creating products that stand the test of time, earning unwavering customer loyalty and premium pricing power.

Published: June 17, 2025

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Acquirer's Engine

Invest in companies with proven expertise in growth-by-acquisition. These carefully selected stocks represent businesses with exceptional management teams that consistently buy their way to market leadership and enhanced profitability through strategic M&A.

Published: June 17, 2025

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Investment Analysis