Comparing Commercial Vehicle Group (NASDAQ:CVGI) & Otis Worldwide (NYSE:OTIS)

Commercial Vehicle Group (NASDAQ:CVGI) and Otis Worldwide (NYSE:OTIS) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their dividends, profitability, valuation, analyst recommendations, earnings, risk and institutional ownership.

Volatility and Risk

Commercial Vehicle Group has a beta of 1.37, meaning that its stock price is 37% more volatile than the S&P 500. Comparatively, Otis Worldwide has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Commercial Vehicle Group and Otis Worldwide, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Commercial Vehicle Group	1	0	2	0	2.33
Otis Worldwide	2	3	4	0	2.22

Commercial Vehicle Group presently has a consensus price target of $6.00, suggesting a potential upside of 75.44%. Otis Worldwide has a consensus price target of $91.20, suggesting a potential upside of 14.31%. Given Commercial Vehicle Group’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Commercial Vehicle Group is more favorable than Otis Worldwide.

Earnings & Valuation

This table compares Commercial Vehicle Group and Otis Worldwide”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Commercial Vehicle Group	$729.59 million	0.19	-$22.78 million	($0.32)	-10.69
Otis Worldwide	$14.43 billion	2.10	$1.38 billion	$4.02	19.85

Otis Worldwide has higher revenue and earnings than Commercial Vehicle Group. Commercial Vehicle Group is trading at a lower price-to-earnings ratio than Otis Worldwide, indicating that it is currently the more affordable of the two stocks.

Institutional and Insider Ownership

72.3% of Commercial Vehicle Group shares are held by institutional investors. Comparatively, 88.0% of Otis Worldwide shares are held by institutional investors. 15.6% of Commercial Vehicle Group shares are held by insiders. Comparatively, 0.1% of Otis Worldwide shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Profitability

This table compares Commercial Vehicle Group and Otis Worldwide’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Commercial Vehicle Group	-1.43%	-9.49%	-2.95%
Otis Worldwide	10.28%	-28.45%	14.13%

Summary

Otis Worldwide beats Commercial Vehicle Group on 9 of the 14 factors compared between the two stocks.

About Commercial Vehicle Group

Commercial Vehicle Group, Inc., together with its subsidiaries, designs, manufactures, assembles, and sells systems, assemblies, and components to commercial and electric vehicle, and industrial automation markets in North America, Europe, and the Asia-Pacific regions. The company operates in four segments: Vehicle Solutions, Electrical Systems, Aftermarket & Accessories, and Industrial Automation. It offers vehicle seats and seating systems, such as static, mechanical, and air suspension seats, as well as office seating products under KAB Seating, National Seating, Bostrom Seating, and Stratos brands. The company also provides thermoformed, injection molded, reaction injection molded, and decorated/hydrographic finished products; vinyl or cloth-covered appliqués; instrument panels; plastics decorating and finishing products; cab structures; and cab interiors, including armrests, grab handles, storage systems, floor coverings and mats, sleeper bunks, headliners, wall panels, and privacy curtains under the AdvancTEK brand. In addition, it offers high and low voltage electrical wire harness assemblies function as the primary electric current carrying devices used in providing electrical interconnections for gauges, lights, control functions, power circuits, powertrain and transmission sensors, emissions systems, and other electronic applications on commercial and other vehicles; and panel assemblies. Further, the company provides mirrors, wipers, and wiper systems under Bostrom, Moto Mirror, Sprague Devices, and RoadWatch brands; integrated and electro-mechanical assemblies, and cabinets. It offers its products and systems for the truck, power sports, bus, construction, mining, automotive, agricultural, mining, rail, marine, power generation, e-commerce, warehouse integration, transportation, military/defense, industrial, municipal, off-road recreational, and specialty vehicle markets. The company was incorporated in 2000 and is headquartered in New Albany, Ohio.

About Otis Worldwide

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.