Head-To-Head Review: Otis Worldwide (NYSE:OTIS) vs. Symbotic (NASDAQ:SYM)

Otis Worldwide (NYSE:OTIS) and Symbotic (NASDAQ:SYM) are both large-cap industrials companies, but which is the better business? We will contrast the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, dividends, valuation, earnings and profitability.

Analyst Ratings

This is a summary of current ratings and price targets for Otis Worldwide and Symbotic, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Otis Worldwide	1	5	4	0	2.30
Symbotic	2	5	7	0	2.36

Otis Worldwide presently has a consensus target price of $92.91, suggesting a potential upside of 36.99%. Symbotic has a consensus target price of $65.42, suggesting a potential upside of 46.22%. Given Symbotic’s stronger consensus rating and higher probable upside, analysts clearly believe Symbotic is more favorable than Otis Worldwide.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Otis Worldwide	10.17%	-28.50%	14.39%
Symbotic	0.48%	1.40%	0.41%

Earnings & Valuation

This table compares Otis Worldwide and Symbotic”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	1.79	$1.38 billion	$3.89	17.43
Symbotic	$2.25 billion	12.04	-$16.94 million	$0.09	497.11

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

Institutional & Insider Ownership

88.0% of Otis Worldwide shares are owned by institutional investors. 0.1% of Otis Worldwide shares are owned by company insiders. Comparatively, 8.2% of Symbotic shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Risk and Volatility

Otis Worldwide has a beta of 0.88, suggesting that its share price is 12% less volatile than the S&P 500. Comparatively, Symbotic has a beta of 1.94, suggesting that its share price is 94% more volatile than the S&P 500.

Summary

Symbotic beats Otis Worldwide on 8 of the 14 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 Symbotic

Symbotic Inc., an automation technology company, engages in developing technologies to improve operating efficiencies in modern warehouses. The company automates the processing of pallets and cases in large warehouses or distribution centers for retail companies. Its systems enhance operations at the front end of the supply chain. The company was founded in 2006 and is headquartered in Wilmington, Massachusetts.