OTIS vs. TDG: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at OTIS and TDG, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Profile
| Symbol | OTIS | TDG |
|---|---|---|
| Company Name | Otis Worldwide Corporation | TransDigm Group Incorporated |
| Country | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry | Machinery | Aerospace & Defense |
| Market Capitalization | 36.25 billion USD | 73.30 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | March 19, 2020 | March 15, 2006 |
| Security Type | Common Stock | Common Stock |
Historical Performance
This chart compares the performance of OTIS and TDG 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.
Historical Performance at a Glance
| Symbol | OTIS | TDG |
|---|---|---|
| 5-Day Price Return | 3.04% | 1.39% |
| 13-Week Price Return | -7.67% | -13.32% |
| 26-Week Price Return | -10.97% | -5.45% |
| 52-Week Price Return | -12.45% | -6.05% |
| Month-to-Date Return | 5.85% | -5.78% |
| Year-to-Date Return | -1.27% | 4.00% |
| 10-Day Avg. Volume | 3.04M | 0.28M |
| 3-Month Avg. Volume | 3.00M | 0.32M |
| 3-Month Volatility | 29.52% | 32.04% |
| Beta | 1.00 | 1.02 |
Profitability
Return on Equity (TTM)
OTIS
14.92%
Machinery Industry
- Max
- 33.68%
- Q3
- 20.05%
- Median
- 12.37%
- Q1
- 8.67%
- Min
- -7.69%
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.
TDG
37.11%
Aerospace & Defense Industry
- Max
- 37.11%
- Q3
- 20.14%
- Median
- 11.72%
- Q1
- 6.30%
- Min
- -6.24%
In the upper quartile for the Aerospace & Defense industry, TDG’s Return on Equity of 37.11% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Net Profit Margin (TTM)
OTIS
10.68%
Machinery Industry
- Max
- 19.72%
- Q3
- 11.07%
- Median
- 7.62%
- Q1
- 5.05%
- Min
- -1.52%
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.
TDG
22.52%
Aerospace & Defense Industry
- Max
- 13.66%
- Q3
- 8.61%
- Median
- 6.59%
- Q1
- 4.92%
- Min
- 1.01%
TDG’s Net Profit Margin of 22.52% is exceptionally high, placing it well beyond the typical range for the Aerospace & Defense industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
Operating Profit Margin (TTM)
OTIS
13.07%
Machinery Industry
- Max
- 26.63%
- Q3
- 15.99%
- Median
- 11.27%
- Q1
- 7.72%
- Min
- -0.51%
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.
TDG
45.94%
Aerospace & Defense Industry
- Max
- 22.35%
- Q3
- 12.83%
- Median
- 9.29%
- Q1
- 6.38%
- Min
- -2.15%
TDG’s Operating Profit Margin of 45.94% is exceptionally high, placing it well above the typical range for the Aerospace & Defense industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | OTIS | TDG |
|---|---|---|
| Return on Equity (TTM) | 14.92% | 37.11% |
| Return on Assets (TTM) | 13.99% | 8.43% |
| Net Profit Margin (TTM) | 10.68% | 22.52% |
| Operating Profit Margin (TTM) | 13.07% | 45.94% |
| Gross Profit Margin (TTM) | 29.93% | 60.12% |
Financial Strength
Current Ratio (MRQ)
OTIS
0.88
Machinery Industry
- Max
- 3.13
- Q3
- 2.12
- Median
- 1.72
- Q1
- 1.34
- Min
- 0.77
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.
TDG
3.13
Aerospace & Defense Industry
- Max
- 3.35
- Q3
- 2.03
- Median
- 1.24
- Q1
- 1.04
- Min
- 0.77
TDG’s Current Ratio of 3.13 is in the upper quartile for the Aerospace & Defense industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
Debt-to-Equity Ratio (MRQ)
OTIS
--
Machinery Industry
- Max
- 1.56
- Q3
- 0.79
- Median
- 0.44
- Q1
- 0.27
- Min
- 0.00
Debt-to-Equity Ratio data for OTIS is currently unavailable.
TDG
5.41
Aerospace & Defense Industry
- Max
- 1.72
- Q3
- 0.96
- Median
- 0.63
- Q1
- 0.37
- Min
- 0.03
With a Debt-to-Equity Ratio of 5.41, TDG operates with exceptionally high leverage compared to the Aerospace & Defense industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.
Interest Coverage Ratio (TTM)
OTIS
14.54
Machinery Industry
- Max
- 81.58
- Q3
- 37.68
- Median
- 13.76
- 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.
TDG
2.72
Aerospace & Defense Industry
- Max
- 36.57
- Q3
- 19.08
- Median
- 7.25
- Q1
- 2.65
- Min
- -7.63
TDG’s Interest Coverage Ratio of 2.72 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.
Financial Strength at a Glance
| Symbol | OTIS | TDG |
|---|---|---|
| Current Ratio (MRQ) | 0.88 | 3.13 |
| Quick Ratio (MRQ) | 0.80 | 2.07 |
| Debt-to-Equity Ratio (MRQ) | -- | 5.41 |
| Interest Coverage Ratio (TTM) | 14.54 | 2.72 |
Growth
Revenue Growth
EPS Growth
Dividend
Dividend Yield (TTM)
OTIS
1.74%
Machinery Industry
- Max
- 4.55%
- Q3
- 2.66%
- Median
- 1.90%
- Q1
- 1.23%
- Min
- 0.00%
OTIS’s Dividend Yield of 1.74% is consistent with its peers in the Machinery industry, providing a dividend return that is standard for its sector.
TDG
5.88%
Aerospace & Defense Industry
- Max
- 2.72%
- Q3
- 1.45%
- Median
- 0.48%
- Q1
- 0.08%
- Min
- 0.00%
TDG’s Dividend Yield of 5.88% is exceptionally high, placing it well above the typical range for the Aerospace & Defense industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.
Dividend Payout Ratio (TTM)
OTIS
41.64%
Machinery Industry
- Max
- 198.34%
- Q3
- 101.42%
- Median
- 62.79%
- Q1
- 29.85%
- 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.
TDG
891.68%
Aerospace & Defense Industry
- Max
- 110.40%
- Q3
- 50.43%
- Median
- 17.11%
- Q1
- 0.46%
- Min
- 0.00%
At 891.68%, TDG’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Aerospace & Defense industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.
Dividend at a Glance
| Symbol | OTIS | TDG |
|---|---|---|
| Dividend Yield (TTM) | 1.74% | 5.88% |
| Dividend Payout Ratio (TTM) | 41.64% | 891.68% |
Valuation
Price-to-Earnings Ratio (TTM)
OTIS
23.94
Machinery Industry
- Max
- 47.95
- Q3
- 30.11
- Median
- 22.35
- Q1
- 16.56
- Min
- 6.48
OTIS’s P/E Ratio of 23.94 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.
TDG
38.70
Aerospace & Defense Industry
- Max
- 67.20
- Q3
- 55.74
- Median
- 33.28
- Q1
- 27.49
- Min
- 15.02
TDG’s P/E Ratio of 38.70 is within the middle range for the Aerospace & Defense industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Price-to-Sales Ratio (TTM)
OTIS
2.56
Machinery Industry
- Max
- 4.97
- Q3
- 2.76
- Median
- 1.65
- Q1
- 1.04
- Min
- 0.04
OTIS’s P/S Ratio of 2.56 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.
TDG
8.72
Aerospace & Defense Industry
- Max
- 9.06
- Q3
- 4.87
- Median
- 2.47
- Q1
- 1.61
- Min
- 0.33
TDG’s P/S Ratio of 8.72 is in the upper echelon for the Aerospace & Defense 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.
Price-to-Book Ratio (MRQ)
OTIS
--
Machinery Industry
- Max
- 7.29
- Q3
- 4.06
- Median
- 2.67
- Q1
- 1.54
- Min
- 0.52
P/B Ratio data for OTIS is currently unavailable.
TDG
10.13
Aerospace & Defense Industry
- Max
- 14.90
- Q3
- 8.93
- Median
- 4.70
- Q1
- 3.03
- Min
- 0.83
TDG’s P/B Ratio of 10.13 is in the upper tier for the Aerospace & Defense industry. This indicates that investors are paying a premium relative to the company’s net assets, a valuation that hinges on its ability to generate superior profits.
Valuation at a Glance
| Symbol | OTIS | TDG |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 23.94 | 38.70 |
| Price-to-Sales Ratio (TTM) | 2.56 | 8.72 |
| Price-to-Book Ratio (MRQ) | -- | 10.13 |
| Price-to-Free Cash Flow Ratio (TTM) | 26.87 | 39.23 |