Otis Worldwide (NYSE:OTIS – Get Free Report) and Art’s-Way Manufacturing (NASDAQ:ARTW – Get Free Report) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their institutional ownership, profitability, dividends, valuation, earnings, risk and analyst recommendations.
Insider and Institutional Ownership
88.0% of Otis Worldwide shares are owned by institutional investors. Comparatively, 2.9% of Art’s-Way Manufacturing shares are owned by institutional investors. 0.1% of Otis Worldwide shares are owned by insiders. Comparatively, 51.5% of Art’s-Way Manufacturing shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.
Earnings & Valuation
This table compares Otis Worldwide and Art’s-Way Manufacturing”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Otis Worldwide | $14.43 billion | 1.74 | $1.38 billion | $3.89 | 16.97 |
| Art’s-Way Manufacturing | $22.98 million | 0.75 | $1.03 million | ($0.01) | -330.00 |
Otis Worldwide has higher revenue and earnings than Art’s-Way Manufacturing. Art’s-Way Manufacturing 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 breakdown of current recommendations for Otis Worldwide and Art’s-Way Manufacturing, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Otis Worldwide | 2 | 4 | 4 | 0 | 2.20 |
| Art’s-Way Manufacturing | 1 | 0 | 0 | 0 | 1.00 |
Otis Worldwide currently has a consensus price target of $92.64, suggesting a potential upside of 40.36%. Given Otis Worldwide’s stronger consensus rating and higher probable upside, research analysts plainly believe Otis Worldwide is more favorable than Art’s-Way Manufacturing.
Profitability
This table compares Otis Worldwide and Art’s-Way Manufacturing’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Otis Worldwide | 10.17% | -28.50% | 14.39% |
| Art’s-Way Manufacturing | -0.08% | -0.16% | -0.10% |
Risk & Volatility
Otis Worldwide has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Art’s-Way Manufacturing has a beta of 1.06, suggesting that its share price is 6% more volatile than the S&P 500.
Summary
Otis Worldwide beats Art’s-Way Manufacturing on 11 of the 14 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 Art’s-Way Manufacturing
Art’s-Way Manufacturing Co., Inc. manufactures and distributes farm equipment products. It operates through the Agricultural Products, and Modular Buildings segments. The Agricultural Products segment manufactures a variety of specialized farm machinery under its own label including portable and stationary animal feed processing equipment and related attachments used to mill and mix feed grains into custom animal feed rations, a line of forage equipment consisting of forage boxes, bale processors, running gear, and dump boxes, a line of manure spreaders, sugar beet harvesting equipment, and a line of dirt work equipment. The Modular Buildings segment produces and sells modular buildings, which are custom designed to meet the specific research needs of its customers. It also provides services relating to the design, manufacturing, delivery, installation and renting of the building units that it produces. The company was founded by Arthur Luscombe in 1956 and is headquartered in Armstrong, IA.
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