Financial Contrast: Dover (NYSE:DOV) & Otis Worldwide (NYSE:OTIS)

Otis Worldwide (NYSE:OTIS) and Dover (NYSE:DOV) are both large-cap industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their valuation, profitability, institutional ownership, analyst recommendations, risk, earnings and dividends.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for Otis Worldwide and Dover, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Otis Worldwide	1	5	3	0	2.22
Dover	0	7	6	0	2.46

Otis Worldwide currently has a consensus price target of $103.71, indicating a potential upside of 20.01%. Dover has a consensus price target of $210.83, indicating a potential upside of 10.43%. Given Otis Worldwide’s higher probable upside, research analysts clearly believe Otis Worldwide is more favorable than Dover.

Earnings & Valuation

This table compares Otis Worldwide and Dover”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Otis Worldwide	$14.26 billion	2.36	$1.65 billion	$3.39	25.49
Dover	$7.75 billion	3.38	$2.70 billion	$16.26	11.74

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

Insider and Institutional Ownership

88.0% of Otis Worldwide shares are held by institutional investors. Comparatively, 84.5% of Dover shares are held by institutional investors. 0.2% of Otis Worldwide shares are held by insiders. Comparatively, 1.2% of Dover shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Otis Worldwide has a beta of 1.01, suggesting that its share price is 1% more volatile than the S&P 500. Comparatively, Dover has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500.

Dividends

Otis Worldwide pays an annual dividend of $1.68 per share and has a dividend yield of 1.9%. Dover pays an annual dividend of $2.08 per share and has a dividend yield of 1.1%. Otis Worldwide pays out 49.6% of its earnings in the form of a dividend. Dover pays out 12.8% 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 increased its dividend for 5 consecutive years and Dover has increased its dividend for 70 consecutive years.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Otis Worldwide	9.41%	-30.67%	14.34%
Dover	28.37%	17.62%	9.94%

Summary

Dover beats Otis Worldwide on 11 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 Dover

Dover Corporation provides equipment and components, consumable supplies, aftermarket parts, software and digital solutions, and support services worldwide. The company's Engineered Products segment provides various equipment, component, software, solution, and services that are used in vehicle aftermarket, waste handling, industrial automation, aerospace and defense, industrial winch and hoist, and fluid dispensing end-market. This segment offers manual and power clamp, rotary and linear mechanical indexer, conveyor, pick and place unit, glove port, and manipulator, as well as end-of-arm robotic gripper, slide, and end effector; winches, hoists, bearings, drives, and electric monitoring system; and radio frequency and microwave filters and switches, and signal intelligence solutions. Its Clean Energy & Fueling segment offers component, equipment, and software and service solution enabling safe storage and transport of fuel, cryogenic gases, and hazardous fluids, as well as operation of retail fueling and vehicle wash establishment. The company's Imaging & Identification segment provides precision marking and coding, product traceability equipment, brand protection, and digital textile printing equipment and solution, as well as related consumable, software, and service to packaged and consumer goods, pharmaceutical, manufacturing, fashion and apparel, and other end-market. Its Pumps & Process Solutions segment manufactures specialty pump, connector, flow meter, fluid connecting solution, plastics and polymer processing equipment, and engineered components for rotating and reciprocating machines. The company's Climate & Sustainability Technologies segment manufactures refrigeration system, refrigeration display case, commercial glass refrigerator and freezer door, and brazed plate heat exchanger for industrial heating and cooling, and residential climate control applications. The company was incorporated in 1947 and is headquartered in Downers Grove, Illinois.