Otis Worldwide Corporation (OTIS) vs Rockwell Automation, Inc. (ROK)

Otis Worldwide Corporation and Rockwell Automation, Inc. are both Specialty Industrial Machinery companies. Rockwell Automation, Inc. is the larger, with a market value of $42.3B against $30.3B — 1.4× the size. Otis Worldwide Corporation trades at the lower P/E: 19.6× against 35.6×. Rockwell Automation, Inc. grew revenue faster over the last twelve months: 11.3% against 5.77%. Rockwell Automation, Inc. has the higher net margin (13.4% vs 10.3%) and the lower return on invested capital (14.7% vs 67.7%). Both pay a dividend; Otis Worldwide Corporation yields more (2.16% vs 1.45%). Across the 22 metrics below, Otis Worldwide Corporation leads on 12 and Rockwell Automation, Inc. on 10.

Valuation

Metric OTIS ROK Specialty Industrial Machinery median
P/E 19.57 35.64 25.64
P/S 2.01 4.71 2.81
P/B n/m 12.08 2.99
Price to free cash flow 17.90 28.09 23.82
EV/EBITDA 15.17 22.18 15.15
EV/Sales 2.50 4.94 2.77
Earnings yield 5.11% 2.81% 3.07%
Free cash flow yield 5.59% 3.56% 3.67%

Profitability

Metric OTIS ROK Specialty Industrial Machinery median
Gross margin 29.86% 49.09% 35.46%
Operating margin 15.35% 16.19% 10.04%
Net margin 10.28% 13.36% 7.24%
Free cash flow margin 11.23% 16.76% 9.04%
Return on equity (29.31%) 33.66% 10.73%
Return on assets 14.09% 10.76% 4.51%
Return on invested capital 67.69% 14.71% 5.00%

Growth

Metric OTIS ROK Specialty Industrial Machinery median
Revenue growth (TTM) 5.77% 11.31% 6.59%
EPS growth (last fiscal year) (14.00%) (7.37%) 5.97%
Revenue growth, 5-year CAGR 2.50% 5.68% 8.53%
Net income growth, 5-year CAGR 8.84% (3.26%) 6.58%

Health

Metric OTIS ROK Specialty Industrial Machinery median
Debt to equity (1.57) 0.74 0.33
Current ratio 0.86 1.08 2.08
Net debt to EBITDA 2.97 1.32 1.32

Dividend

Metric OTIS ROK Specialty Industrial Machinery median
Dividend yield 2.16% 1.45% 1.11%
Payout ratio 0.42 0.52 0.31

Size

Metric OTIS ROK Specialty Industrial Machinery median
Market cap 30.26b 42.32b 2.19b

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