Otis Worldwide (NYSE:OTIS – Get Free Report) and Applied Industrial Technologies (NYSE:AIT – Get Free Report) are both large-cap industrials companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, earnings, profitability, dividends, risk, institutional ownership and analyst recommendations.
Dividends
Otis Worldwide pays an annual dividend of $1.68 per share and has a dividend yield of 2.2%. Applied Industrial Technologies pays an annual dividend of $2.04 per share and has a dividend yield of 0.7%. Otis Worldwide pays out 44.7% of its earnings in the form of a dividend. Applied Industrial Technologies pays out 19.3% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Otis Worldwide has increased its dividend for 5 consecutive years and Applied Industrial Technologies has increased its dividend for 16 consecutive years.
Volatility and Risk
Otis Worldwide has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Applied Industrial Technologies has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500.
Insider and Institutional Ownership
Analyst Recommendations
This is a breakdown of recent ratings for Otis Worldwide and Applied Industrial Technologies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Otis Worldwide | 1 | 7 | 3 | 0 | 2.18 |
| Applied Industrial Technologies | 0 | 1 | 5 | 0 | 2.83 |
Otis Worldwide currently has a consensus target price of $97.64, indicating a potential upside of 29.11%. Applied Industrial Technologies has a consensus target price of $313.67, indicating a potential upside of 2.63%. Given Otis Worldwide’s higher possible upside, equities analysts plainly believe Otis Worldwide is more favorable than Applied Industrial Technologies.
Profitability
This table compares Otis Worldwide and Applied Industrial Technologies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Otis Worldwide | 10.11% | -29.39% | 14.86% |
| Applied Industrial Technologies | 8.34% | 21.64% | 12.91% |
Valuation & Earnings
This table compares Otis Worldwide and Applied Industrial Technologies”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Otis Worldwide | $14.43 billion | 2.01 | $1.38 billion | $3.76 | 20.11 |
| Applied Industrial Technologies | $4.56 billion | 2.48 | $392.99 million | $10.59 | 28.86 |
Otis Worldwide has higher revenue and earnings than Applied Industrial Technologies. Otis Worldwide is trading at a lower price-to-earnings ratio than Applied Industrial Technologies, indicating that it is currently the more affordable of the two stocks.
Summary
Applied Industrial Technologies beats Otis Worldwide on 10 of the 17 factors compared between the two stocks.
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.
About Applied Industrial Technologies
Applied Industrial Technologies, Inc. distributes industrial motion, power, control, and automation technology solutions in North America, Australia, New Zealand, and Singapore. It operates in two segments, Service Center Based Distribution, and Engineered Solutions. The company distributes bearings, power transmission products, engineered fluid power components and systems, specialty flow control solutions, advanced automation products, industrial rubber products, linear motion components, automation solutions, tools, safety products, oilfield supplies, and other industrial and maintenance supplies; and motors, belting, drives, couplings, pumps, hydraulic and pneumatic components, filtration supplies, valves, fittings, process instrumentation, actuators, and hoses, filtration supplies, as well as other related supplies for general operational needs of customers' machinery and equipment. It also operates fabricated rubber shops and service field crews that install, modify, and repair conveyor belts and rubber linings, as well as offer hose assemblies. In addition, the company provides technical support services; engages in the distribution of fluid power and industrial flow control products; advanced automation solutions, including machine vision, robotics, motion control, and smart technologies. It distributes industrial products through a network of service centers. The company serves various industries, including agriculture and food processing, cement, chemicals and petrochemicals, fabricated metals, forest products, industrial machinery and equipment, life sciences, mining, oil and gas, primary metals, technology, transportation, and utilities, as well as government entities. The company was formerly known as Bearings, Inc. and changed its to name to Applied Industrial Technologies, Inc. in 1997. The company was founded in 1923 and is headquartered in Cleveland, Ohio.
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