Critical Review: Symbotic (NASDAQ:SYM) & Otis Worldwide (NYSE:OTIS)

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

Profitability

This table compares Otis Worldwide and Symbotic’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%
Symbotic	0.48%	1.40%	0.41%

Volatility and Risk

Otis Worldwide has a beta of 0.88, indicating that its share price is 12% less volatile than the S&P 500. Comparatively, Symbotic has a beta of 1.94, indicating that its share price is 94% more volatile than the S&P 500.

Insider & Institutional Ownership

88.0% of Otis Worldwide shares are held by institutional investors. 0.1% of Otis Worldwide shares are held by insiders. Comparatively, 8.2% of Symbotic shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Valuation & Earnings

This table compares Otis Worldwide and Symbotic”s gross 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	1.81	$1.38 billion	$3.89	17.62
Symbotic	$2.25 billion	11.28	-$16.94 million	$0.09	465.44

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

Analyst Recommendations

This is a summary of current recommendations for Otis Worldwide and Symbotic, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Otis Worldwide	1	5	4	0	2.30
Symbotic	4	4	7	0	2.20

Otis Worldwide presently has a consensus price target of $92.91, indicating a potential upside of 35.53%. Symbotic has a consensus price target of $65.42, indicating a potential upside of 56.16%. Given Symbotic’s higher possible upside, analysts clearly believe Symbotic is more favorable than Otis Worldwide.

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 Symbotic

Symbotic Inc., an automation technology company, engages in developing technologies to improve operating efficiencies in modern warehouses. The company automates the processing of pallets and cases in large warehouses or distribution centers for retail companies. Its systems enhance operations at the front end of the supply chain. The company was founded in 2006 and is headquartered in Wilmington, Massachusetts.