RBC Bearings (NYSE:RBC) versus Otis Worldwide (NYSE:OTIS) Financial Contrast

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

Insider & Institutional Ownership

88.0% of Otis Worldwide shares are held by institutional investors. 0.2% of Otis Worldwide shares are held by insiders. Comparatively, 1.9% of RBC Bearings shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Volatility and Risk

Otis Worldwide has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.Comparatively, RBC Bearings has a beta of 1.47, indicating that its share price is 47% more volatile than the S&P 500.

Profitability

This table compares Otis Worldwide and RBC Bearings’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Otis Worldwide	9.59%	-30.42%	14.84%
RBC Bearings	15.00%	10.86%	6.93%

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Otis Worldwide and RBC Bearings, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Otis Worldwide	1	6	3	0	2.20
RBC Bearings	0	1	6	1	3.00

Otis Worldwide presently has a consensus price target of $101.44, suggesting a potential upside of 15.97%. RBC Bearings has a consensus price target of $574.67, suggesting a potential upside of 1.56%. Given Otis Worldwide’s higher possible upside, equities analysts plainly believe Otis Worldwide is more favorable than RBC Bearings.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Otis Worldwide	$14.43 billion	2.36	$1.38 billion	$3.50	24.99
RBC Bearings	$1.64 billion	10.93	$246.20 million	$8.50	66.57

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

Summary

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

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.

About RBC Bearings

RBC Bearings Incorporated manufactures and markets engineered precision bearings, components, and systems in the United States and internationally. It operates through two segments, Aerospace/Defense and Industrial. The company produces plain bearings with self-lubricating or metal-to-metal designs, including rod end bearings, spherical plain bearings, and journal bearings; roller bearings, such as tapered roller bearings, needle roller bearings, and needle bearing track rollers and cam followers, which are anti-friction products that are used in industrial applications and military aircraft platforms; and ball bearings include high precision aerospace, airframe control, thin section, and industrial ball bearings that utilize high precision ball elements to reduce friction in high-speed applications. In addition, it offers mounted bearing products include mounted ball bearings, mounted roller bearings, and mounted plain bearings; and enclosed gearing product lines, including quantis gearmotor, torque arm, tigear, magnagear and maxum, and controlled start transmission. Further, the company's power transmission components include mechanical drive components, couplings, and conveyor components; engineered hydraulics and valves for aircraft and submarine applications, and aerospace and defense aftermarket services; fasteners; precision mechanical components, which are used in various general industrial applications; and machine tool collets that are used for holding circulars or rod-like pieces. It serves automotive, tool holding, agricultural and semiconductor machinery, commercial and defense aerospace, ground defense, construction and mining, oil and natural resource extraction, heavy truck, marine, rail and train, material handling, food and beverage, packaging and canning, wind, and general industrial markets through its direct sales force, and a network of industrial and aerospace distributors. The company was founded in 1919 and is based in Oxford, Connecticut.