Head to Head Comparison: Revolution Acceleration Acquisition (OTCMKTS:RAACU) & Illinois Tool Works (NYSE:ITW)

Revolution Acceleration Acquisition (OTCMKTS:RAACU) and Illinois Tool Works (NYSE:ITW) are both manufacturing companies, but which is the better business? We will compare the two businesses based on the strength of their risk, profitability, earnings, dividends, institutional ownership, analyst recommendations and valuation.

Insider and Institutional Ownership

79.8% of Illinois Tool Works shares are owned by institutional investors. 0.9% of Illinois Tool Works shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Valuation and Earnings

This table compares Revolution Acceleration Acquisition and Illinois Tool Works’ revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Revolution Acceleration Acquisition	N/A	N/A	N/A	N/A	N/A
Illinois Tool Works	$16.01 billion	4.60	$2.96 billion	$10.14	24.36

Illinois Tool Works has higher revenue and earnings than Revolution Acceleration Acquisition.

Profitability

This table compares Revolution Acceleration Acquisition and Illinois Tool Works’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Revolution Acceleration Acquisition	N/A	N/A	N/A
Illinois Tool Works	19.15%	99.74%	19.26%

Analyst Ratings

This is a breakdown of recent ratings for Revolution Acceleration Acquisition and Illinois Tool Works, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Revolution Acceleration Acquisition	0	0	0	0	N/A
Illinois Tool Works	3	4	2	1	2.10

Illinois Tool Works has a consensus price target of $250.22, suggesting a potential upside of 1.31%. Given Illinois Tool Works’ higher possible upside, analysts plainly believe Illinois Tool Works is more favorable than Revolution Acceleration Acquisition.

Summary

Illinois Tool Works beats Revolution Acceleration Acquisition on 9 of the 9 factors compared between the two stocks.

About Revolution Acceleration Acquisition

Revolution Acceleration Acquisition Corp does not have significant operations. It intends to effect a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. The company was formerly known as Acceleration Acquisition Corporation and changed its name to Revolution Acceleration Acquisition Corp in November 2020. Revolution Acceleration Acquisition Corp was incorporated in 2020 and is based in Washington, District of Columbia.

About Illinois Tool Works

Illinois Tool Works Inc. manufactures and sells industrial products and equipment in the United States and internationally. It operates through seven segments: Automotive OEM; Food Equipment; Test & Measurement and Electronics; Welding; Polymers & Fluids; Construction Products; and Specialty Products. The Automotive OEM segment offers plastic and metal components, fasteners, and assemblies for automobiles, light trucks, and other industrial uses. The Food Equipment segment provides warewashing, refrigeration, cooking, and food processing equipment; kitchen exhaust, ventilation, and pollution control systems; and food equipment maintenance and repair services. The Test & Measurement and Electronics segment produces and sells equipment, consumables, and related software for testing and measuring of materials and structures, as well as equipment and consumables used in the production of electronic subassemblies and microelectronics. The Welding segment produces arc welding equipment; and metal arc welding consumables and related accessories. The Polymers & Fluids segment produces adhesives, sealants, lubrication and cutting fluids, and fluids and polymers for auto aftermarket maintenance and appearance. The Construction Products segment offers engineered fastening systems and solutions for the residential construction, renovation/remodel, and commercial construction markets. The Specialty Products segment provides beverage packaging equipment and consumables, product coding and marking equipment and consumables, and appliance components and fasteners. It serves the automotive OEM and tiers, MRO, commercial food equipment, construction, general industrial, industrial capital goods, consumer durables, automotive aftermarket end, and other markets. The company distributes its products directly to industrial manufacturers, as well as through independent distributors. Illinois Tool Works Inc. was founded in 1912 and is based in Glenview, Illinois.