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CAT vs. OTIS: A Head-to-Head Stock Comparison

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Here’s a clear look at CAT and OTIS, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

SymbolCATOTIS
Company NameCaterpillar Inc.Otis Worldwide Corporation
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryMachineryMachinery
Market Capitalization197.04 billion USD34.98 billion USD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962March 19, 2020
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of CAT 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.

CAT vs. OTIS: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolCATOTIS
5-Day Price Return0.74%1.80%
13-Week Price Return19.29%-9.56%
26-Week Price Return18.91%-9.08%
52-Week Price Return22.03%-3.82%
Month-to-Date Return-3.98%4.00%
Year-to-Date Return15.94%-3.77%
10-Day Avg. Volume3.54M3.96M
3-Month Avg. Volume2.76M3.04M
3-Month Volatility19.85%29.46%
Beta1.460.99

Profitability

Return on Equity (TTM)

CAT

49.92%

Machinery Industry

Max
34.68%
Q3
19.06%
Median
13.13%
Q1
8.53%
Min
-4.87%

CAT’s Return on Equity of 49.92% is exceptionally high, placing it well beyond the typical range for the Machinery industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

OTIS

14.92%

Machinery Industry

Max
34.68%
Q3
19.06%
Median
13.13%
Q1
8.53%
Min
-4.87%

OTIS’s Return on Equity of 14.92% is on par with the norm for the Machinery industry, indicating its profitability relative to shareholder equity is typical for the sector.

CAT vs. OTIS: A comparison of their Return on Equity (TTM) against the Machinery industry benchmark.

Net Profit Margin (TTM)

CAT

14.95%

Machinery Industry

Max
19.74%
Q3
11.24%
Median
8.13%
Q1
5.38%
Min
-1.11%

A Net Profit Margin of 14.95% places CAT in the upper quartile for the Machinery industry, signifying strong profitability and more effective cost management than most of its peers.

OTIS

10.68%

Machinery Industry

Max
19.74%
Q3
11.24%
Median
8.13%
Q1
5.38%
Min
-1.11%

OTIS’s Net Profit Margin of 10.68% is aligned with the median group of its peers in the Machinery industry. This indicates its ability to convert revenue into profit is typical for the sector.

CAT vs. OTIS: A comparison of their Net Profit Margin (TTM) against the Machinery industry benchmark.

Operating Profit Margin (TTM)

CAT

18.23%

Machinery Industry

Max
26.63%
Q3
16.15%
Median
11.27%
Q1
7.72%
Min
-4.91%

An Operating Profit Margin of 18.23% places CAT in the upper quartile for the Machinery industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

OTIS

13.07%

Machinery Industry

Max
26.63%
Q3
16.15%
Median
11.27%
Q1
7.72%
Min
-4.91%

OTIS’s Operating Profit Margin of 13.07% is around the midpoint for the Machinery industry, indicating that its efficiency in managing core business operations is typical for the sector.

CAT vs. OTIS: A comparison of their Operating Profit Margin (TTM) against the Machinery industry benchmark.

Profitability at a Glance

SymbolCATOTIS
Return on Equity (TTM)49.92%14.92%
Return on Assets (TTM)10.81%13.99%
Net Profit Margin (TTM)14.95%10.68%
Operating Profit Margin (TTM)18.23%13.07%
Gross Profit Margin (TTM)36.53%29.93%

Financial Strength

Current Ratio (MRQ)

CAT

1.34

Machinery Industry

Max
3.83
Q3
2.32
Median
1.72
Q1
1.28
Min
0.78

CAT’s Current Ratio of 1.34 aligns with the median group of the Machinery industry, indicating that its short-term liquidity is in line with its sector peers.

OTIS

0.88

Machinery Industry

Max
3.83
Q3
2.32
Median
1.72
Q1
1.28
Min
0.78

OTIS’s Current Ratio of 0.88 falls into the lower quartile for the Machinery industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

CAT vs. OTIS: A comparison of their Current Ratio (MRQ) against the Machinery industry benchmark.

Debt-to-Equity Ratio (MRQ)

CAT

2.18

Machinery Industry

Max
1.49
Q3
0.75
Median
0.44
Q1
0.26
Min
0.00

With a Debt-to-Equity Ratio of 2.18, CAT operates with exceptionally high leverage compared to the Machinery industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

OTIS

--

Machinery Industry

Max
1.49
Q3
0.75
Median
0.44
Q1
0.26
Min
0.00

Debt-to-Equity Ratio data for OTIS is currently unavailable.

CAT vs. OTIS: A comparison of their Debt-to-Equity Ratio (MRQ) against the Machinery industry benchmark.

Interest Coverage Ratio (TTM)

CAT

12.53

Machinery Industry

Max
67.55
Q3
33.79
Median
13.87
Q1
7.97
Min
-1.43

CAT’s Interest Coverage Ratio of 12.53 is positioned comfortably within the norm for the Machinery industry, indicating a standard and healthy capacity to cover its interest payments.

OTIS

14.54

Machinery Industry

Max
67.55
Q3
33.79
Median
13.87
Q1
7.97
Min
-1.43

OTIS’s Interest Coverage Ratio of 14.54 is positioned comfortably within the norm for the Machinery industry, indicating a standard and healthy capacity to cover its interest payments.

CAT vs. OTIS: A comparison of their Interest Coverage Ratio (TTM) against the Machinery industry benchmark.

Financial Strength at a Glance

SymbolCATOTIS
Current Ratio (MRQ)1.340.88
Quick Ratio (MRQ)0.720.80
Debt-to-Equity Ratio (MRQ)2.18--
Interest Coverage Ratio (TTM)12.5314.54

Growth

Revenue Growth

CAT vs. OTIS: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

CAT vs. OTIS: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

CAT

1.37%

Machinery Industry

Max
5.32%
Q3
2.84%
Median
1.87%
Q1
1.09%
Min
0.00%

CAT’s Dividend Yield of 1.37% is consistent with its peers in the Machinery industry, providing a dividend return that is standard for its sector.

OTIS

1.80%

Machinery Industry

Max
5.32%
Q3
2.84%
Median
1.87%
Q1
1.09%
Min
0.00%

OTIS’s Dividend Yield of 1.80% is consistent with its peers in the Machinery industry, providing a dividend return that is standard for its sector.

CAT vs. OTIS: A comparison of their Dividend Yield (TTM) against the Machinery industry benchmark.

Dividend Payout Ratio (TTM)

CAT

28.60%

Machinery Industry

Max
202.17%
Q3
98.65%
Median
55.54%
Q1
29.03%
Min
0.00%

CAT’s Dividend Payout Ratio of 28.60% is in the lower quartile for the Machinery industry. This suggests a conservative dividend policy, with a strategic focus on reinvesting profits for future growth.

OTIS

41.64%

Machinery Industry

Max
202.17%
Q3
98.65%
Median
55.54%
Q1
29.03%
Min
0.00%

OTIS’s Dividend Payout Ratio of 41.64% is within the typical range for the Machinery industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

CAT vs. OTIS: A comparison of their Dividend Payout Ratio (TTM) against the Machinery industry benchmark.

Dividend at a Glance

SymbolCATOTIS
Dividend Yield (TTM)1.37%1.80%
Dividend Payout Ratio (TTM)28.60%41.64%

Valuation

Price-to-Earnings Ratio (TTM)

CAT

20.88

Machinery Industry

Max
53.66
Q3
31.29
Median
22.00
Q1
16.18
Min
7.00

CAT’s P/E Ratio of 20.88 is within the middle range for the 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.

OTIS

23.20

Machinery Industry

Max
53.66
Q3
31.29
Median
22.00
Q1
16.18
Min
7.00

OTIS’s P/E Ratio of 23.20 is within the middle range for the 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.

CAT vs. OTIS: A comparison of their Price-to-Earnings Ratio (TTM) against the Machinery industry benchmark.

Price-to-Sales Ratio (TTM)

CAT

3.12

Machinery Industry

Max
5.04
Q3
2.72
Median
1.67
Q1
1.04
Min
0.24

CAT’s P/S Ratio of 3.12 is in the upper echelon for the Machinery industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

OTIS

2.48

Machinery Industry

Max
5.04
Q3
2.72
Median
1.67
Q1
1.04
Min
0.24

OTIS’s P/S Ratio of 2.48 aligns with the market consensus for the Machinery industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

CAT vs. OTIS: A comparison of their Price-to-Sales Ratio (TTM) against the Machinery industry benchmark.

Price-to-Book Ratio (MRQ)

CAT

9.78

Machinery Industry

Max
7.23
Q3
3.90
Median
2.52
Q1
1.47
Min
0.49

At 9.78, CAT’s P/B Ratio is at an extreme premium to the Machinery 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

--

Machinery Industry

Max
7.23
Q3
3.90
Median
2.52
Q1
1.47
Min
0.49

P/B Ratio data for OTIS is currently unavailable.

CAT vs. OTIS: A comparison of their Price-to-Book Ratio (MRQ) against the Machinery industry benchmark.

Valuation at a Glance

SymbolCATOTIS
Price-to-Earnings Ratio (TTM)20.8823.20
Price-to-Sales Ratio (TTM)3.122.48
Price-to-Book Ratio (MRQ)9.78--
Price-to-Free Cash Flow Ratio (TTM)25.4626.04