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 $48.1B against $25.4B — 1.9× the size. Otis Worldwide Corporation trades at the lower P/E: 16.8× against 40.7×. Rockwell Automation, Inc. grew revenue faster over the last twelve months: 11.3% against 5.24%. Rockwell Automation, Inc. has the higher net margin (13.4% vs 10.2%) and the lower return on invested capital (14.7% vs 69.4%). Both pay a dividend; Rockwell Automation, Inc. yields more (1.82% vs 1.61%). Across the 22 metrics below, Otis Worldwide Corporation leads on 11 and Rockwell Automation, Inc. on 11.

Valuation

Metric OTIS ROK Specialty Industrial Machinery median
P/E 16.82 40.69 29.62
P/S 1.69 5.38 2.77
P/B n/m 13.80 3.04
Price to free cash flow 14.52 32.07 23.81
EV/EBITDA 13.35 25.18 16.05
EV/Sales 2.20 5.61 2.94
Earnings yield 5.94% 2.46% 3.08%
Free cash flow yield 6.89% 3.12% 3.12%

Profitability

Metric OTIS ROK Specialty Industrial Machinery median
Gross margin 30.17% 49.09% 35.90%
Operating margin 15.35% 16.19% 11.22%
Net margin 10.17% 13.36% 7.80%
Free cash flow margin 11.66% 16.76% 9.51%
Return on equity (28.00%) 33.66% 11.10%
Return on assets 14.00% 10.76% 4.63%
Return on invested capital 69.35% 14.71% 5.37%

Growth

Metric OTIS ROK Specialty Industrial Machinery median
Revenue growth (TTM) 5.24% 11.31% 6.45%
EPS growth (last fiscal year) (14.00%) (7.37%) —
Revenue growth, 5-year CAGR 2.50% 5.68% 8.31%
Net income growth, 5-year CAGR 8.84% (3.26%) 5.04%

Health

Metric OTIS ROK Specialty Industrial Machinery median
Debt to equity (1.52) 0.74 0.35
Current ratio 0.83 1.08 2.11
Net debt to EBITDA 2.97 1.32 1.32

Dividend

Metric OTIS ROK Specialty Industrial Machinery median
Dividend yield 1.61% 1.82% 1.12%
Payout ratio 0.38 0.38 0.17

Size

Metric OTIS ROK Specialty Industrial Machinery median
Market cap 25.40b 48.14b 1.97b

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