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

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

Company Profile

SymbolOTISTXT
Company NameOtis Worldwide CorporationTextron Inc.
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryMachineryAerospace & Defense
Market Capitalization35.93 billion USD15.48 billion USD
ExchangeNYSENYSE
Listing DateMarch 19, 2020February 21, 1973
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of OTIS and TXT 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.

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

Historical Performance at a Glance

SymbolOTISTXT
5-Day Price Return0.27%3.36%
13-Week Price Return-8.01%5.62%
26-Week Price Return-11.30%20.21%
52-Week Price Return-12.66%-0.15%
Month-to-Date Return0.12%2.79%
Year-to-Date Return-1.16%13.54%
10-Day Avg. Volume2.33M1.35M
3-Month Avg. Volume3.00M1.50M
3-Month Volatility29.30%23.81%
Beta1.011.03

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.

TXT

11.31%

Aerospace & Defense Industry

Max
37.11%
Q3
20.14%
Median
11.72%
Q1
6.30%
Min
-6.24%

TXT’s Return on Equity of 11.31% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.

OTIS vs. TXT: A comparison of their Return on Equity (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

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.

TXT

5.80%

Aerospace & Defense Industry

Max
13.66%
Q3
8.61%
Median
6.59%
Q1
4.92%
Min
1.01%

TXT’s Net Profit Margin of 5.80% is aligned with the median group of its peers in the Aerospace & Defense industry. This indicates its ability to convert revenue into profit is typical for the sector.

OTIS vs. TXT: A comparison of their Net Profit Margin (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

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.

TXT

5.50%

Aerospace & Defense Industry

Max
22.35%
Q3
12.83%
Median
9.29%
Q1
6.38%
Min
-2.15%

TXT’s Operating Profit Margin of 5.50% 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 vs. TXT: A comparison of their Operating Profit Margin (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Profitability at a Glance

SymbolOTISTXT
Return on Equity (TTM)14.92%11.31%
Return on Assets (TTM)13.99%4.85%
Net Profit Margin (TTM)10.68%5.80%
Operating Profit Margin (TTM)13.07%5.50%
Gross Profit Margin (TTM)29.93%19.73%

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.

TXT

1.70

Aerospace & Defense Industry

Max
3.35
Q3
2.03
Median
1.24
Q1
1.04
Min
0.77

TXT’s Current Ratio of 1.70 aligns with the median group of the Aerospace & Defense industry, indicating that its short-term liquidity is in line with its sector peers.

OTIS vs. TXT: A comparison of their Current Ratio (MRQ) against their respective Machinery and Aerospace & Defense industry benchmarks.

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.

TXT

0.50

Aerospace & Defense Industry

Max
1.72
Q3
0.96
Median
0.63
Q1
0.37
Min
0.03

TXT’s Debt-to-Equity Ratio of 0.50 is typical for the Aerospace & Defense industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

OTIS vs. TXT: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Machinery and Aerospace & Defense industry benchmarks.

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.

TXT

10.72

Aerospace & Defense Industry

Max
36.57
Q3
19.08
Median
7.25
Q1
2.65
Min
-7.63

TXT’s Interest Coverage Ratio of 10.72 is positioned comfortably within the norm for the Aerospace & Defense industry, indicating a standard and healthy capacity to cover its interest payments.

OTIS vs. TXT: A comparison of their Interest Coverage Ratio (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Financial Strength at a Glance

SymbolOTISTXT
Current Ratio (MRQ)0.881.70
Quick Ratio (MRQ)0.800.71
Debt-to-Equity Ratio (MRQ)--0.50
Interest Coverage Ratio (TTM)14.5410.72

Growth

Revenue Growth

OTIS vs. TXT: 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

OTIS vs. TXT: 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)

OTIS

1.75%

Machinery Industry

Max
4.55%
Q3
2.66%
Median
1.90%
Q1
1.23%
Min
0.00%

OTIS’s Dividend Yield of 1.75% is consistent with its peers in the Machinery industry, providing a dividend return that is standard for its sector.

TXT

0.07%

Aerospace & Defense Industry

Max
2.72%
Q3
1.45%
Median
0.48%
Q1
0.08%
Min
0.00%

TXT’s Dividend Yield of 0.07% is in the lower quartile for the Aerospace & Defense industry. This suggests the company’s strategy likely favors retaining earnings for growth over providing a high dividend income.

OTIS vs. TXT: A comparison of their Dividend Yield (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

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.

TXT

1.85%

Aerospace & Defense Industry

Max
110.40%
Q3
50.43%
Median
17.11%
Q1
0.46%
Min
0.00%

TXT’s Dividend Payout Ratio of 1.85% is within the typical range for the Aerospace & Defense industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

OTIS vs. TXT: A comparison of their Dividend Payout Ratio (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Dividend at a Glance

SymbolOTISTXT
Dividend Yield (TTM)1.75%0.07%
Dividend Payout Ratio (TTM)41.64%1.85%

Valuation

Price-to-Earnings Ratio (TTM)

OTIS

23.78

Machinery Industry

Max
47.95
Q3
30.11
Median
22.35
Q1
16.56
Min
6.48

OTIS’s P/E Ratio of 23.78 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.

TXT

18.95

Aerospace & Defense Industry

Max
67.20
Q3
55.74
Median
33.28
Q1
27.49
Min
15.02

In the lower quartile for the Aerospace & Defense industry, TXT’s P/E Ratio of 18.95 suggests the stock may be undervalued compared to its peers, potentially presenting an attractive entry point for investors.

OTIS vs. TXT: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

Price-to-Sales Ratio (TTM)

OTIS

2.54

Machinery Industry

Max
4.97
Q3
2.76
Median
1.65
Q1
1.04
Min
0.04

OTIS’s P/S Ratio of 2.54 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.

TXT

1.10

Aerospace & Defense Industry

Max
9.06
Q3
4.87
Median
2.47
Q1
1.61
Min
0.33

In the lower quartile for the Aerospace & Defense industry, TXT’s P/S Ratio of 1.10 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

OTIS vs. TXT: A comparison of their Price-to-Sales Ratio (TTM) against their respective Machinery and Aerospace & Defense industry benchmarks.

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.

TXT

1.95

Aerospace & Defense Industry

Max
14.90
Q3
8.93
Median
4.70
Q1
3.03
Min
0.83

TXT’s P/B Ratio of 1.95 is in the lower quartile for the Aerospace & Defense industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

OTIS vs. TXT: A comparison of their Price-to-Book Ratio (MRQ) against their respective Machinery and Aerospace & Defense industry benchmarks.

Valuation at a Glance

SymbolOTISTXT
Price-to-Earnings Ratio (TTM)23.7818.95
Price-to-Sales Ratio (TTM)2.541.10
Price-to-Book Ratio (MRQ)--1.95
Price-to-Free Cash Flow Ratio (TTM)26.6920.92