AXON vs. OTIS: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AXON and OTIS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AXON’s market capitalization of 61.93 billion USD is substantially larger than OTIS’s 39.27 billion USD, indicating a significant difference in their market valuations.
With betas of 1.28 for AXON and 0.97 for OTIS, both stocks show similar sensitivity to overall market movements.
| Symbol | AXON | OTIS |
|---|---|---|
| Company Name | Axon Enterprise, Inc. | Otis Worldwide Corporation |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Aerospace & Defense | Industrial - Machinery |
| CEO | Patrick W. Smith | Judith F. Marks |
| Price | 795.48 USD | 99.51 USD |
| Market Cap | 61.93 billion USD | 39.27 billion USD |
| Beta | 1.28 | 0.97 |
| Exchange | NASDAQ | NYSE |
| IPO Date | June 19, 2001 | March 19, 2020 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AXON and OTIS by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AXON
14.86%
Aerospace & Defense Industry
- Max
- 42.57%
- Q3
- 16.67%
- Median
- 8.39%
- Q1
- -0.77%
- Min
- -23.36%
AXON’s Return on Equity of 14.86% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.
OTIS
-30.82%
Industrial - Machinery Industry
- Max
- 36.51%
- Q3
- 18.65%
- Median
- 12.08%
- Q1
- 4.75%
- Min
- -15.57%
OTIS has a negative Return on Equity of -30.82%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.
Return on Invested Capital
AXON
0.68%
Aerospace & Defense Industry
- Max
- 23.42%
- Q3
- 8.86%
- Median
- 5.47%
- Q1
- -5.60%
- Min
- -22.46%
AXON’s Return on Invested Capital of 0.68% is in line with the norm for the Aerospace & Defense industry, reflecting a standard level of efficiency in generating profits from its capital base.
OTIS
33.42%
Industrial - Machinery Industry
- Max
- 22.35%
- Q3
- 12.64%
- Median
- 9.33%
- Q1
- 5.32%
- Min
- -5.42%
OTIS’s Return on Invested Capital of 33.42% is exceptionally high, placing it well beyond the typical range for the Industrial - Machinery industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.
Net Profit Margin
AXON
14.86%
Aerospace & Defense Industry
- Max
- 22.67%
- Q3
- 8.04%
- Median
- 4.95%
- Q1
- -5.07%
- Min
- -16.58%
A Net Profit Margin of 14.86% places AXON in the upper quartile for the Aerospace & Defense industry, signifying strong profitability and more effective cost management than most of its peers.
OTIS
10.83%
Industrial - Machinery Industry
- Max
- 28.85%
- Q3
- 15.25%
- Median
- 10.02%
- Q1
- 5.33%
- Min
- -8.75%
OTIS’s Net Profit Margin of 10.83% is aligned with the median group of its peers in the Industrial - Machinery industry. This indicates its ability to convert revenue into profit is typical for the sector.
Operating Profit Margin
AXON
1.50%
Aerospace & Defense Industry
- Max
- 22.01%
- Q3
- 11.49%
- Median
- 8.96%
- Q1
- 3.77%
- Min
- -4.96%
AXON’s Operating Profit Margin of 1.50% is in the lower quartile for the Aerospace & Defense industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.
OTIS
13.26%
Industrial - Machinery Industry
- Max
- 28.19%
- Q3
- 19.04%
- Median
- 14.62%
- Q1
- 8.13%
- Min
- -5.76%
OTIS’s Operating Profit Margin of 13.26% is around the midpoint for the Industrial - Machinery industry, indicating that its efficiency in managing core business operations is typical for the sector.
Profitability at a Glance
| Symbol | AXON | OTIS |
|---|---|---|
| Return on Equity (TTM) | 14.86% | -30.82% |
| Return on Assets (TTM) | 5.44% | 13.73% |
| Return on Invested Capital (TTM) | 0.68% | 33.42% |
| Net Profit Margin (TTM) | 14.86% | 10.83% |
| Operating Profit Margin (TTM) | 1.50% | 13.26% |
| Gross Profit Margin (TTM) | 60.44% | 29.86% |
Financial Strength
Current Ratio
AXON
2.83
Aerospace & Defense Industry
- Max
- 5.13
- Q3
- 3.36
- Median
- 2.16
- Q1
- 1.20
- Min
- 0.41
AXON’s Current Ratio of 2.83 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.
OTIS
0.94
Industrial - Machinery Industry
- Max
- 4.18
- Q3
- 2.75
- Median
- 2.07
- Q1
- 1.46
- Min
- 0.46
OTIS’s Current Ratio of 0.94 falls into the lower quartile for the Industrial - Machinery industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
Debt-to-Equity Ratio
AXON
0.80
Aerospace & Defense Industry
- Max
- 1.20
- Q3
- 0.73
- Median
- 0.51
- Q1
- 0.09
- Min
- 0.00
AXON’s leverage is in the upper quartile of the Aerospace & Defense industry, with a Debt-to-Equity Ratio of 0.80. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.
OTIS
-1.70
Industrial - Machinery Industry
- Max
- 1.46
- Q3
- 0.73
- Median
- 0.48
- Q1
- 0.17
- Min
- 0.00
OTIS has a Debt-to-Equity Ratio of -1.70, which indicates negative shareholder equity where liabilities exceed assets. This is a critical sign of financial distress.
Interest Coverage Ratio
AXON
2.53
Aerospace & Defense Industry
- Max
- 12.62
- Q3
- 7.38
- Median
- 2.95
- Q1
- 1.68
- Min
- -6.68
AXON’s Interest Coverage Ratio of 2.53 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.
OTIS
15.66
Industrial - Machinery Industry
- Max
- 28.91
- Q3
- 14.99
- Median
- 9.11
- Q1
- 3.95
- Min
- -11.30
OTIS’s Interest Coverage Ratio of 15.66 is in the upper quartile for the Industrial - Machinery industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AXON | OTIS |
|---|---|---|
| Current Ratio (TTM) | 2.83 | 0.94 |
| Quick Ratio (TTM) | 2.62 | 0.87 |
| Debt-to-Equity Ratio (TTM) | 0.80 | -1.70 |
| Debt-to-Asset Ratio (TTM) | 0.34 | 0.78 |
| Net Debt-to-EBITDA Ratio (TTM) | 4.16 | 3.24 |
| Interest Coverage Ratio (TTM) | 2.53 | 15.66 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AXON and OTIS. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AXON
0.00%
Aerospace & Defense Industry
- Max
- 6.00%
- Q3
- 0.66%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AXON currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
OTIS
1.60%
Industrial - Machinery Industry
- Max
- 4.40%
- Q3
- 1.47%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
With a Dividend Yield of 1.60%, OTIS offers a more attractive income stream than most of its peers in the Industrial - Machinery industry, signaling a strong commitment to shareholder returns.
Dividend Payout Ratio
AXON
0.00%
Aerospace & Defense Industry
- Max
- 172.02%
- Q3
- 32.47%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AXON has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
OTIS
40.59%
Industrial - Machinery Industry
- Max
- 78.48%
- Q3
- 36.22%
- Median
- 20.24%
- Q1
- 0.00%
- Min
- 0.00%
OTIS’s Dividend Payout Ratio of 40.59% is in the upper quartile for the Industrial - Machinery industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.
Dividend at a Glance
| Symbol | AXON | OTIS |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.60% |
| Dividend Payout Ratio (TTM) | 0.00% | 40.59% |
Valuation
Price-to-Earnings Ratio
AXON
184.79
Aerospace & Defense Industry
- Max
- 75.34
- Q3
- 54.40
- Median
- 38.63
- Q1
- 26.10
- Min
- 16.44
At 184.79, AXON’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Aerospace & Defense industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
OTIS
25.71
Industrial - Machinery Industry
- Max
- 47.62
- Q3
- 34.41
- Median
- 27.36
- Q1
- 21.62
- Min
- 10.96
OTIS’s P/E Ratio of 25.71 is within the middle range for the Industrial - Machinery industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
AXON
8.54
Aerospace & Defense Industry
- Max
- 10.68
- Q3
- 5.36
- Median
- 2.31
- Q1
- 1.47
- Min
- 0.01
A Forward PEG Ratio of 8.54 places AXON in the upper quartile for the Aerospace & Defense industry. This suggests the stock is potentially expensive compared to its peers relative to its growth forecast, which may warrant caution.
OTIS
2.64
Industrial - Machinery Industry
- Max
- 6.15
- Q3
- 3.53
- Median
- 2.82
- Q1
- 1.71
- Min
- 0.09
The Forward PEG Ratio is often not a primary valuation metric in the Industrial - Machinery industry.
Price-to-Sales Ratio
AXON
27.81
Aerospace & Defense Industry
- Max
- 19.34
- Q3
- 9.54
- Median
- 2.71
- Q1
- 1.59
- Min
- 0.35
With a P/S Ratio of 27.81, AXON trades at a valuation that eclipses even the highest in the Aerospace & Defense industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
OTIS
2.77
Industrial - Machinery Industry
- Max
- 8.37
- Q3
- 4.59
- Median
- 3.34
- Q1
- 1.83
- Min
- 0.32
OTIS’s P/S Ratio of 2.77 aligns with the market consensus for the Industrial - Machinery industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.
Price-to-Book Ratio
AXON
23.93
Aerospace & Defense Industry
- Max
- 16.08
- Q3
- 8.12
- Median
- 4.12
- Q1
- 2.69
- Min
- 0.69
At 23.93, AXON’s P/B Ratio is at an extreme premium to the Aerospace & Defense industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
OTIS
-7.70
Industrial - Machinery Industry
- Max
- 7.49
- Q3
- 5.01
- Median
- 3.41
- Q1
- 2.45
- Min
- 0.01
OTIS has a negative P/B Ratio of -7.70, indicating its liabilities exceed its assets and result in negative shareholder equity. This is a critical warning sign of financial distress.
Valuation at a Glance
| Symbol | AXON | OTIS |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 184.79 | 25.71 |
| Forward PEG Ratio (TTM) | 8.54 | 2.64 |
| Price-to-Sales Ratio (P/S, TTM) | 27.81 | 2.77 |
| Price-to-Book Ratio (P/B, TTM) | 23.93 | -7.70 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 170.80 | 27.03 |
| EV-to-EBITDA (TTM) | 274.06 | 21.90 |
| EV-to-Sales (TTM) | 28.23 | 3.25 |