ITT Inc. (ITT) vs Otis Worldwide Corporation (OTIS)

ITT Inc. and Otis Worldwide Corporation are both Specialty Industrial Machinery companies. Otis Worldwide Corporation is the larger, with a market value of $25.4B against $19.1B — 1.3× the size. Otis Worldwide Corporation trades at the lower P/E: 16.8× against 40.3×. ITT Inc. grew revenue faster over the last twelve months: 28.1% against 5.24%. Otis Worldwide Corporation has the higher net margin (10.2% vs 8.90%) and the higher return on invested capital (69.4% vs 5.35%). Both pay a dividend; Otis Worldwide Corporation yields more (1.61% vs 1.02%). Across the 22 metrics below, Otis Worldwide Corporation leads on 14 and ITT Inc. on 8.

Valuation

Metric ITT OTIS Specialty Industrial Machinery median
P/E 40.29 16.82 29.62
P/S 3.89 1.69 2.77
P/B 3.83 n/m 3.04
Price to free cash flow 36.19 14.52 23.81
EV/EBITDA 23.97 13.35 16.05
EV/Sales 4.55 2.20 2.94
Earnings yield 2.48% 5.94% 3.08%
Free cash flow yield 2.76% 6.89% 3.12%

Profitability

Metric ITT OTIS Specialty Industrial Machinery median
Gross margin 34.98% 30.17% 35.90%
Operating margin 14.35% 15.35% 11.22%
Net margin 8.90% 10.17% 7.80%
Free cash flow margin 10.75% 11.66% 9.51%
Return on equity 11.43% (28.00%) 11.10%
Return on assets 5.25% 14.00% 4.63%
Return on invested capital 5.35% 69.35% 5.37%

Growth

Metric ITT OTIS Specialty Industrial Machinery median
Revenue growth (TTM) 28.07% 5.24% 6.45%
EPS growth (last fiscal year) (3.02%) (14.00%) —
Revenue growth, 5-year CAGR 9.71% 2.50% 8.31%
Net income growth, 5-year CAGR 46.43% 8.84% 5.04%

Health

Metric ITT OTIS Specialty Industrial Machinery median
Debt to equity 0.78 (1.52) 0.35
Current ratio 1.26 0.83 2.11
Net debt to EBITDA (1.16) 2.97 1.32

Dividend

Metric ITT OTIS Specialty Industrial Machinery median
Dividend yield 1.02% 1.61% 1.12%
Payout ratio 0.22 0.38 0.17

Size

Metric ITT OTIS Specialty Industrial Machinery median
Market cap 19.13b 25.40b 1.97b

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