DNOW (NYSE:DNOW) versus Otis Worldwide (NYSE:OTIS) Head to Head Comparison

DNOW (NYSE:DNOW) and Otis Worldwide (NYSE:OTIS) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their valuation, dividends, risk, institutional ownership, analyst recommendations, earnings and profitability.

Volatility & Risk

DNOW has a beta of 0.79, indicating that its share price is 21% less volatile than the S&P 500. Comparatively, Otis Worldwide has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500.

Profitability

This table compares DNOW and Otis Worldwide’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
DNOW	3.91%	9.35%	6.55%
Otis Worldwide	9.59%	-30.42%	14.84%

Earnings and Valuation

This table compares DNOW and Otis Worldwide”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DNOW	$2.37 billion	0.72	$81.00 million	$0.87	18.82
Otis Worldwide	$14.43 billion	2.51	$1.38 billion	$3.50	26.57

Otis Worldwide has higher revenue and earnings than DNOW. DNOW is trading at a lower price-to-earnings ratio than Otis Worldwide, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a summary of recent recommendations and price targets for DNOW and Otis Worldwide, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DNOW	0	1	2	1	3.00
Otis Worldwide	1	6	3	0	2.20

DNOW presently has a consensus price target of $17.67, indicating a potential upside of 7.92%. Otis Worldwide has a consensus price target of $101.44, indicating a potential upside of 9.07%. Given Otis Worldwide’s higher probable upside, analysts clearly believe Otis Worldwide is more favorable than DNOW.

Insider and Institutional Ownership

97.6% of DNOW shares are owned by institutional investors. Comparatively, 88.0% of Otis Worldwide shares are owned by institutional investors. 2.7% of DNOW shares are owned by company insiders. Comparatively, 0.2% of Otis Worldwide shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Otis Worldwide beats DNOW on 10 of the 15 factors compared between the two stocks.

About DNOW

DNOW Inc. distributes downstream energy and industrial products for petroleum refining, chemical processing, LNG terminals, power generation utilities, and customer on-site locations in the United States, Canada, and internationally. The company provides consumable maintenance, repair, and operating supplies; pipes, manual and automated valves, fittings, flanges, gaskets, fasteners, electrical instrumentations, artificial lift, pumping solutions, valve actuation and modular process, and measurement and control equipment; and mill supplies, tools, safety supplies, and personal protective equipment, as well as artificial lift systems, coatings, and miscellaneous expendable items. It also offers original equipment manufacturer equipment, including pumps, generator sets, air compressors, dryers, blowers, mixers, and valves; modular oil and gas tank battery solutions; and application systems, work processes, parts integration, optimization solutions, and after-sales support services. In addition, the company provides supply chain and materials management; inventory planning and management, procurement, and warehouse management, as well as solutions for logistics, point of issue technology, project management, business process, and performance metrics reporting services. It serves customers in the upstream, midstream, and downstream sectors of the energy industry, including drilling contractors, well-servicing companies, independent and national oil and gas companies, midstream operators, and refineries, as well as petrochemical, chemical, utilities, RNG facilities, and other downstream energy processors; and industrial and manufacturing companies. The company was formerly known as NOW Inc. and changed its name to DNOW Inc. in January 2024. DNOW Inc. was founded in 1862 and is headquartered in Houston, Texas.

About Otis Worldwide

Otis Worldwide Corporation engages in manufacturing, installation, and servicing of elevators and escalators in the United States, China, and internationally. The company operates in two segments, New Equipment and Service. The New Equipment segment designs, manufactures, sells, and installs a range of passenger and freight elevators, as well as escalators and moving walkways for residential and commercial buildings, and infrastructure projects. This segment serves real-estate and building developers, and general contractors. It sells its products directly to customers, as well as through agents and distributors. The Service segment performs maintenance and repair services, as well as modernization services to upgrade elevators and escalators. Otis Worldwide Corporation was founded in 1853 and is headquartered in Farmington, Connecticut.