Burnham (OTCMKTS:BURCA – Get Free Report) and Otis Worldwide (NYSE:OTIS – Get Free Report) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.
Earnings and Valuation
This table compares Burnham and Otis Worldwide”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Burnham | $258.11 million | 0.33 | -$21.45 million | ($4.58) | -5.46 |
| Otis Worldwide | $14.43 billion | 1.95 | $1.38 billion | $3.76 | 19.53 |
Dividends
Burnham pays an annual dividend of $0.92 per share and has a dividend yield of 3.7%. Otis Worldwide pays an annual dividend of $1.76 per share and has a dividend yield of 2.4%. Burnham pays out -20.1% of its earnings in the form of a dividend. Otis Worldwide pays out 46.8% 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 raised its dividend for 5 consecutive years. Burnham is clearly the better dividend stock, given its higher yield and lower payout ratio.
Volatility & Risk
Burnham has a beta of 0.14, suggesting that its share price is 86% less volatile than the S&P 500. Comparatively, Otis Worldwide has a beta of 0.91, suggesting that its share price is 9% less volatile than the S&P 500.
Institutional & Insider Ownership
1.5% of Burnham shares are held by institutional investors. Comparatively, 88.0% of Otis Worldwide shares are held by institutional investors. 0.1% of Otis Worldwide shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Profitability
This table compares Burnham and Otis Worldwide’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Burnham | -7.96% | 11.89% | 7.37% |
| Otis Worldwide | 10.11% | -29.39% | 14.86% |
Analyst Recommendations
This is a summary of current recommendations and price targets for Burnham and Otis Worldwide, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Burnham | 0 | 0 | 0 | 0 | 0.00 |
| Otis Worldwide | 1 | 7 | 3 | 1 | 2.33 |
Otis Worldwide has a consensus price target of $97.58, indicating a potential upside of 32.88%. Given Otis Worldwide’s stronger consensus rating and higher possible upside, analysts clearly believe Otis Worldwide is more favorable than Burnham.
Summary
Otis Worldwide beats Burnham on 15 of the 18 factors compared between the two stocks.
About Burnham
Burnham Holdings, Inc. designs, manufactures, and sells boilers and related heating, ventilation, and air conditioning products and accessories for residential, commercial, and industrial applications in the United States and internationally. Its residential hydronic heating products include cast iron, stainless steel, and steel boilers; cast iron and steel heat distribution products; radiators; and warm air furnaces and central air conditioning systems for the residential heating and cooling markets, including units for the manufactured housing industry. The company's commercial and industrial heating products comprise a range of cast iron, stainless steel, fire tube, water tube, copper tube boilers, and water heaters; and boiler room accessories that are used for various applications, such as military bases, multi-unit residential buildings, health care, government, education, and hospital facilities. The company sells its residential products through wholesale distributors to builders, heating contractors, fuel dealers, and utilities for resale to end-use customers; and commercial products primarily through independent sales representatives, directly to contractors, or end users. Burnham Holdings, Inc. is based in Lancaster, Pennsylvania.
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.
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