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LECO vs. OTIS: Lincoln Electric vs. Otis Worldwide Stock Comparison

How do Lincoln Electric (LECO) and Otis Worldwide (OTIS) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Lincoln Electric (LECO) and Otis Worldwide (OTIS) are both classified in the Industrial Machinery & Supplies & Components sub-industry within the broader Machinery industry, placing them in the closest GICS peer bucket.

Lincoln Electric (LECO) has more than two decades of public-market history since April 7, 1994, whereas Otis Worldwide (OTIS) listed on March 19, 2020 and has a much shorter record to draw on.

Company profile comparison for Lincoln Electric (LECO) and Otis Worldwide (OTIS)
Profile ItemLECOOTIS
NameLincoln Electric Holdings, Inc.Otis Worldwide Corporation
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryMachineryMachinery
GICS Sub-IndustryIndustrial Machinery & Supplies & ComponentsIndustrial Machinery & Supplies & Components
Market Capitalization14.91 billion USD30.06 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateApril 7, 1994March 19, 2020
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

LECO
OTIS
GSPC
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Lincoln Electric (LECO) vs. Otis Worldwide (OTIS), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Lincoln Electric (LECO) and Otis Worldwide (OTIS). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Lincoln Electric (LECO) and Otis Worldwide (OTIS). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Lincoln Electric (LECO) and Otis Worldwide (OTIS)
MetricLECOOTIS
Total Return (1Y)27.30%-10.81%
Total Return (3Y, Annualized)17.31%1.33%
Total Return (5Y, Annualized)16.33%0.66%

Risk Profile

Drawdown History

LECO
OTIS
GSPC
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Lincoln Electric (LECO) vs. Otis Worldwide (OTIS), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Lincoln Electric (LECO) and Otis Worldwide (OTIS). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Lincoln Electric (LECO) and Otis Worldwide (OTIS)
MetricLECOOTIS
Volatility (1Y, Annualized)31.13%23.24%
Beta (5Y)1.170.85
Max Drawdown (5Y)-34.29%-37.22%
Avg. Volume (3M)409.99K4.42M

Risk-Adjusted Performance

Risk-Return Positioning

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LECO and OTIS are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Lincoln Electric (LECO) and Otis Worldwide (OTIS)
MetricLECOOTIS
Sharpe Ratio (1Y)0.74-0.65
Sortino Ratio (1Y)1.11-0.92

Profitability

ROE (TTM)

Capital efficiency shows on one side only: Lincoln Electric (LECO) earns 38.75% on shareholders’ equity, ranked against its industry; Otis Worldwide (OTIS) has no ROE this period.

LECO

Capital Goods industry group

38.75%

Max
40.55%
LECO
38.75%
Q3
19.29%
Median
12.12%
Q1
4.08%
Min
-17.12%

OTIS

Capital Goods industry group

--

Max
40.55%
Q3
19.29%
Median
12.12%
Q1
4.08%
Min
-17.12%
OTIS
--
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Lincoln Electric (LECO) vs. Otis Worldwide (OTIS): OTIS does not report ROE, so it has no value marker; LECO is benchmarked against the Capital Goods industry group.

Net Margin (TTM)

Lincoln Electric (LECO) at 12.40% retains a top-quartile share of revenue as profit, ahead of Otis Worldwide (OTIS) at 10.28%, which keeps about the industry-typical share.

LECO

Capital Goods industry group

12.40%

Max
27.47%
LECO
12.40%
Q3
12.10%
Median
6.30%
Q1
1.40%
Min
-12.89%

OTIS

Capital Goods industry group

10.28%

Max
27.47%
Q3
12.10%
OTIS
10.28%
Median
6.30%
Q1
1.40%
Min
-12.89%
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Lincoln Electric (LECO) vs. Otis Worldwide (OTIS): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Both Lincoln Electric (LECO) at 18.29% and Otis Worldwide (OTIS) at 15.97% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

LECO

Capital Goods industry group

18.29%

Max
36.60%
Q3
18.33%
LECO
18.29%
Median
11.12%
Q1
5.14%
Min
-12.63%

OTIS

Capital Goods industry group

15.97%

Max
36.60%
Q3
18.33%
OTIS
15.97%
Median
11.12%
Q1
5.14%
Min
-12.63%
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Lincoln Electric (LECO) vs. Otis Worldwide (OTIS): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Lincoln Electric (LECO) and Otis Worldwide (OTIS)
MetricLECOOTIS
ROE (TTM)38.75%--
ROA (TTM)13.32%13.26%
Net Margin (TTM)12.40%10.28%
Operating Margin (TTM)18.29%15.97%
Gross Margin (TTM)35.54%29.95%

Growth

Revenue Growth

Lincoln Electric (LECO) at 5.60% is around its peer norm for revenue growth, while Otis Worldwide (OTIS) at 1.19% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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Lincoln Electric (LECO) vs. Otis Worldwide (OTIS): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Lincoln Electric (LECO) at 14.36% and Otis Worldwide (OTIS) at -14.00% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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Lincoln Electric (LECO) vs. Otis Worldwide (OTIS): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Lincoln Electric (LECO) and Otis Worldwide (OTIS)
MetricLECOOTIS
Revenue Growth (YoY)5.60%1.19%
Revenue Growth (3Y CAGR)4.02%1.79%
EPS Growth (YoY)14.36%-14.00%
EPS Growth (3Y CAGR)5.05%5.74%

Financial Strength

Current Ratio (MRQ)

Lincoln Electric (LECO) at 1.91 keeps current ratio within its industry’s typical mid-range, while Otis Worldwide (OTIS) at 0.86 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for OTIS.

LECO

Capital Goods industry group

1.91

Max
5.22
Q3
2.95
Median
2.08
LECO
1.91
Q1
1.43
Min
0.36

OTIS

Capital Goods industry group

0.86

Max
5.22
Q3
2.95
Median
2.08
Q1
1.43
OTIS
0.86
Min
0.36
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Lincoln Electric (LECO) vs. Otis Worldwide (OTIS): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Only one side’s leverage can be read here: Lincoln Electric (LECO) carries debt-to-equity ratio of 0.78 against its industry range, while Otis Worldwide (OTIS) reports no figure this period.

LECO

Capital Goods industry group

0.78

Max
2.33
Q3
1.12
LECO
0.78
Median
0.60
Q1
0.29
Min
0.00

OTIS

Capital Goods industry group

--

Max
2.33
Q3
1.12
Median
0.60
Q1
0.29
Min
0.00
OTIS
--
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Lincoln Electric (LECO) vs. Otis Worldwide (OTIS): OTIS does not report debt-to-equity ratio, so it has no value marker; LECO is benchmarked against the Capital Goods industry group.

Financial Strength Metrics

Financial strength metrics for Lincoln Electric (LECO) and Otis Worldwide (OTIS)
MetricLECOOTIS
Current Ratio (MRQ)1.910.86
Debt / Equity (MRQ)0.78--
Net Debt / EBITDA1.003.12

Dividends

Dividend Yield (TTM)

Both Lincoln Electric (LECO) at 1.16% and Otis Worldwide (OTIS) at 2.16% offer top-quartile dividend income relative to share price within their industries.

LECO

Capital Goods industry group

1.16%

Max
2.66%
LECO
1.16%
Q3
1.14%
Median
0.24%
Q1
0.00%
Min
0.00%

OTIS

Capital Goods industry group

2.16%

Max
2.66%
OTIS
2.16%
Q3
1.14%
Median
0.24%
Q1
0.00%
Min
0.00%
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Lincoln Electric (LECO) vs. Otis Worldwide (OTIS): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Both Lincoln Electric (LECO) at 30.30% and Otis Worldwide (OTIS) at 42.79% pay out an above-typical share of earnings for their industries, leaving thinner cover if profits dip.

LECO

Capital Goods industry group

30.30%

Max
67.39%
LECO
30.30%
Q3
28.02%
Median
6.86%
Q1
0.00%
Min
0.00%

OTIS

Capital Goods industry group

42.79%

Max
67.39%
OTIS
42.79%
Q3
28.02%
Median
6.86%
Q1
0.00%
Min
0.00%
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Lincoln Electric (LECO) vs. Otis Worldwide (OTIS): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Lincoln Electric (LECO) and Otis Worldwide (OTIS)
MetricLECOOTIS
Dividend Yield (TTM)1.16%2.16%
Dividend Payout Ratio (TTM)30.30%42.79%

Valuation

P/E Ratio (TTM)

Both Lincoln Electric (LECO) at 26.40 and Otis Worldwide (OTIS) at 19.64 land around their industries’ usual P/E ratio levels — neither is getting a clear earnings-multiple discount or premium versus peers.

LECO

Capital Goods industry group

26.40

Max
59.38
Q3
35.92
LECO
26.40
Median
25.41
Q1
19.47
Min
3.03

OTIS

Capital Goods industry group

19.64

Max
59.38
Q3
35.92
Median
25.41
OTIS
19.64
Q1
19.47
Min
3.03
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Lincoln Electric (LECO) vs. Otis Worldwide (OTIS): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Lincoln Electric (LECO) at 3.21 and Otis Worldwide (OTIS) at 1.99 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

LECO

Capital Goods industry group

3.21

Max
7.54
Q3
3.76
LECO
3.21
Median
2.15
Q1
1.03
Min
0.03

OTIS

Capital Goods industry group

1.99

Max
7.54
Q3
3.76
Median
2.15
OTIS
1.99
Q1
1.03
Min
0.03
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Lincoln Electric (LECO) vs. Otis Worldwide (OTIS): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

Otis Worldwide (OTIS) reports a negative P/B ratio of -5.54, meaning negative book equity — the multiple itself is not meaningful for valuation. Meanwhile Lincoln Electric (LECO) reports 9.59, ranking against industry peers normally.

LECO

Capital Goods industry group

9.59

Max
9.66
LECO
9.59
Q3
5.00
Median
3.12
Q1
1.81
Min
-1.08

OTIS

Capital Goods industry group

-5.54

Max
9.66
Q3
5.00
Median
3.12
Q1
1.81
Min
-1.08
OTIS
-5.54
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Lincoln Electric (LECO) vs. Otis Worldwide (OTIS): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Lincoln Electric (LECO) and Otis Worldwide (OTIS)
MetricLECOOTIS
P/E Ratio (TTM)26.4019.64
P/S Ratio (TTM)3.211.99
P/B Ratio (MRQ)9.59-5.54
Free Cash Flow Yield (TTM)2.68%4.61%