Otis Worldwide (NYSE:OTIS – Get Free Report) and DNOW (NYSE:DNOW – Get Free Report) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, valuation, earnings, institutional ownership, analyst recommendations, risk and profitability.
Insider and Institutional Ownership
88.0% of Otis Worldwide shares are owned by institutional investors. Comparatively, 97.6% of DNOW shares are owned by institutional investors. 0.2% of Otis Worldwide shares are owned by insiders. Comparatively, 2.7% of DNOW shares are owned 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.
Analyst Recommendations
This is a summary of recent recommendations for Otis Worldwide and DNOW, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Otis Worldwide | 1 | 6 | 3 | 0 | 2.20 |
| DNOW | 0 | 1 | 2 | 1 | 3.00 |
Earnings & Valuation
This table compares Otis Worldwide and DNOW”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Otis Worldwide | $14.43 billion | 2.50 | $1.38 billion | $3.50 | 26.47 |
| DNOW | $2.37 billion | 0.59 | $81.00 million | ($0.29) | -45.64 |
Otis Worldwide has higher revenue and earnings than DNOW. DNOW is trading at a lower price-to-earnings ratio than Otis Worldwide, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Otis Worldwide has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, DNOW has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500.
Profitability
This table compares Otis Worldwide and DNOW’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Otis Worldwide | 9.59% | -30.42% | 14.84% |
| DNOW | 3.91% | 9.35% | 6.55% |
Summary
Otis Worldwide beats DNOW on 9 of the 15 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 DNOW
DNOW Inc. distributes downstream energy and industrial products for petroleum refining, chemical processing, LNG terminals, power generation utilities, and customer on-site locations in the United States, Canada, and internationally. The company provides consumable maintenance, repair, and operating supplies; pipes, manual and automated valves, fittings, flanges, gaskets, fasteners, electrical instrumentations, artificial lift, pumping solutions, valve actuation and modular process, and measurement and control equipment; and mill supplies, tools, safety supplies, and personal protective equipment, as well as artificial lift systems, coatings, and miscellaneous expendable items. It also offers original equipment manufacturer equipment, including pumps, generator sets, air compressors, dryers, blowers, mixers, and valves; modular oil and gas tank battery solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support services. In addition, the company provides supply chain and materials management; inventory planning and management, procurement, and warehouse management, as well as solutions for logistics, point of issue technology, project management, business process, and performance metrics reporting services. It serves customers in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well-servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, RNG facilities, and other downstream energy processors; and industrial and manufacturing companies. The company was formerly known as NOW Inc. and changed its name to DNOW Inc. in January 2024. DNOW Inc. was founded in 1862 and is headquartered in Houston, Texas.
Receive News & Ratings for Otis Worldwide Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Otis Worldwide and related companies with MarketBeat.com's FREE daily email newsletter.
