Otis Worldwide (NYSE:OTIS) and Alta Equipment Group (NYSE:ALTG) Head-To-Head Comparison

Otis Worldwide (NYSE:OTIS) and Alta Equipment Group (NYSE:ALTG) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, risk, profitability, institutional ownership, earnings, analyst recommendations and valuation.

Profitability

This table compares Otis Worldwide and Alta Equipment Group’s 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%
Alta Equipment Group	-4.33%	-3,253.61%	-5.70%

Valuation and Earnings

This table compares Otis Worldwide and Alta Equipment Group”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	$14.65 billion	1.91	$1.38 billion	$3.76	19.37
Alta Equipment Group	$1.82 billion	0.10	-$80.30 million	($2.53)	-2.32

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Otis Worldwide and Alta Equipment Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Otis Worldwide	1	7	3	0	2.18
Alta Equipment Group	1	2	2	0	2.20

Otis Worldwide presently has a consensus price target of $97.64, suggesting a potential upside of 34.08%. Alta Equipment Group has a consensus price target of $12.17, suggesting a potential upside of 107.62%. Given Alta Equipment Group’s stronger consensus rating and higher possible upside, analysts clearly believe Alta Equipment Group is more favorable than Otis Worldwide.

Institutional & Insider Ownership

88.0% of Otis Worldwide shares are owned by institutional investors. Comparatively, 73.6% of Alta Equipment Group shares are owned by institutional investors. 0.1% of Otis Worldwide shares are owned by insiders. Comparatively, 20.5% of Alta Equipment Group shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Risk and Volatility

Otis Worldwide has a beta of 0.95, suggesting that its stock price is 5% less volatile than the S&P 500. Comparatively, Alta Equipment Group has a beta of 1.82, suggesting that its stock price is 82% more volatile than the S&P 500.

Dividends

Otis Worldwide pays an annual dividend of $1.76 per share and has a dividend yield of 2.4%. Alta Equipment Group pays an annual dividend of $0.22 per share and has a dividend yield of 3.8%. Otis Worldwide pays out 46.8% of its earnings in the form of a dividend. Alta Equipment Group pays out -8.7% 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. Alta Equipment Group is clearly the better dividend stock, given its higher yield and lower payout ratio.

Summary

Otis Worldwide beats Alta Equipment Group 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 Alta Equipment Group

Alta Equipment Group Inc. owns and operates integrated equipment dealership platforms in the United States. It operates through three segments: Material Handling, Construction Equipment, and Master Distribution. The company operates a branch network that sells, rents, and provides parts and service support for various categories of specialized equipment, including lift trucks and other material handling equipment, heavy and compact earthmoving equipment, crushing and screening equipment, environmental processing equipment, cranes and aerial work platforms, paving and asphalt equipment, and other construction equipment and related products. It also offers repair and maintenance services for its equipment. In addition, the company designs and builds warehouses; provides automated equipment installation and system integration solutions; and distributes environmental processing equipment. It serves various manufacturing, food and beverage, automotive, municipal/government, education, pharmaceutical and medical, wholesale and retail distribution, construction, agriculture, road building, mining, recycling, and waste management sectors. Alta Equipment Group Inc. was founded in 1984 and is headquartered in Livonia, Michigan.