Reviewing Albany International (NYSE:AIN) and Otis Worldwide (NYSE:OTIS)

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

Risk & Volatility

Otis Worldwide has a beta of 0.87, meaning that its share price is 13% less volatile than the S&P 500. Comparatively, Albany International has a beta of 1.15, meaning that its share price is 15% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Otis Worldwide	10.28%	-28.45%	14.13%
Albany International	6.73%	14.25%	6.26%

Earnings & Valuation

This table compares Otis Worldwide and Albany International”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Otis Worldwide	$14.43 billion	2.03	$1.38 billion	$4.02	19.13
Albany International	$1.18 billion	1.76	-$57.34 million	$3.09	23.78

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for Otis Worldwide and Albany International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Otis Worldwide	2	3	4	0	2.22
Albany International	1	3	0	1	2.20

Otis Worldwide currently has a consensus price target of $91.20, indicating a potential upside of 18.62%. Albany International has a consensus price target of $69.00, indicating a potential downside of 6.08%. Given Otis Worldwide’s stronger consensus rating and higher possible upside, research analysts plainly believe Otis Worldwide is more favorable than Albany International.

Insider and Institutional Ownership

88.0% of Otis Worldwide shares are owned by institutional investors. Comparatively, 97.4% of Albany International shares are owned by institutional investors. 0.1% of Otis Worldwide shares are owned by insiders. Comparatively, 0.6% of Albany International shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Dividends

Otis Worldwide pays an annual dividend of $1.76 per share and has a dividend yield of 2.3%. Albany International pays an annual dividend of $1.12 per share and has a dividend yield of 1.5%. Otis Worldwide pays out 43.8% of its earnings in the form of a dividend. Albany International pays out 36.2% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Otis Worldwide has raised its dividend for 5 consecutive years and Albany International has raised its dividend for 7 consecutive years.

Summary

Otis Worldwide beats Albany International on 10 of the 18 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 Albany International

Albany International Corp., together with its subsidiaries, engages in the machine clothing and engineered composites businesses. The company operates in two segments, Machine Clothing (MC) and Albany Engineered Composites (AEC). The MC segment designs, manufactures, and markets paper machine clothing for use in the manufacturing of papers, paperboards, tissues, towels, pulps, nonwovens, building products, tannery, and textiles, as well as fiber cement and several other industrial applications. This segment offers paper machine clothing forming, pressing, and drying fabrics, as well as engineered processing belts; and engineered fabrics. The AEC segment 3D-woven and injected composite components for aircraft engines composite airframe and engine components for military and commercial aircraft. It operates in the United States, Switzerland, France, Brazil, China, Mexico, Germany, and internationally. The company was incorporated in 1895 and is headquartered in Rochester, New Hampshire.