Otis Worldwide (OTIS) vs. Its Competitors Financial Comparison

Otis Worldwide (NYSE:OTIS) is one of 69 publicly-traded companies in the “MACH – GENL INDL” industry, but how does it compare to its rivals? We will compare Otis Worldwide to similar companies based on the strength of its earnings, institutional ownership, analyst recommendations, profitability, valuation, risk and dividends.

Analyst Recommendations

This is a breakdown of recent ratings for Otis Worldwide and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Otis Worldwide	2	5	1	0	1.88
Otis Worldwide Competitors	339	2455	3107	125	2.50

Otis Worldwide presently has a consensus price target of $103.63, indicating a potential upside of 4.76%. As a group, “MACH – GENL INDL” companies have a potential upside of 11.12%. Given Otis Worldwide’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Otis Worldwide has less favorable growth aspects than its rivals.

Insider & Institutional Ownership

88.0% of Otis Worldwide shares are owned by institutional investors. Comparatively, 73.4% of shares of all “MACH – GENL INDL” companies are owned by institutional investors. 0.2% of Otis Worldwide shares are owned by insiders. Comparatively, 6.2% of shares of all “MACH – GENL INDL” companies are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Otis Worldwide pays an annual dividend of $1.68 per share and has a dividend yield of 1.7%. Otis Worldwide pays out 44.1% of its earnings in the form of a dividend. As a group, “MACH – GENL INDL” companies pay a dividend yield of 1.1% and pay out 25.5% of their earnings in the form of a dividend. Otis Worldwide has raised its dividend for 5 consecutive years.

Profitability

This table compares Otis Worldwide and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Otis Worldwide	10.83%	-31.72%	14.60%
Otis Worldwide Competitors	8.57%	12.70%	7.08%

Valuation and Earnings

This table compares Otis Worldwide and its rivals revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Otis Worldwide	$14.26 billion	$1.65 billion	25.96
Otis Worldwide Competitors	$4.72 billion	$501.64 million	20.86

Otis Worldwide has higher revenue and earnings than its rivals. Otis Worldwide is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Volatility & Risk

Otis Worldwide has a beta of 0.98, meaning that its share price is 2% less volatile than the S&P 500. Comparatively, Otis Worldwide’s rivals have a beta of 11.39, meaning that their average share price is 1,039% more volatile than the S&P 500.

Summary

Otis Worldwide rivals beat Otis Worldwide on 8 of the 15 factors compared.

Otis Worldwide Company Profile

Otis Worldwide Corporation engages in manufacturing, installation, and servicing of elevators and escalators in the United States, China, and internationally. The company operates in two segments, New Equipment and Service. The New Equipment segment designs, manufactures, sells, and installs a range of passenger and freight elevators, as well as escalators and moving walkways for residential and commercial buildings, and infrastructure projects. This segment serves real-estate and building developers, and general contractors. It sells its products directly to customers, as well as through agents and distributors. The Service segment performs maintenance and repair services, as well as modernization services to upgrade elevators and escalators. Otis Worldwide Corporation was founded in 1853 and is headquartered in Farmington, Connecticut.