DXP Enterprises (NASDAQ:DXPE) versus Otis Worldwide (NYSE:OTIS) Head to Head Contrast

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

Volatility & Risk

DXP Enterprises has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, Otis Worldwide has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.

Earnings & Valuation

This table compares DXP Enterprises and Otis Worldwide”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
DXP Enterprises	$2.02 billion	1.13	$88.68 million	$5.35	27.34
Otis Worldwide	$14.43 billion	1.95	$1.38 billion	$3.76	19.49

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

Analyst Ratings

This is a breakdown of current recommendations for DXP Enterprises and Otis Worldwide, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
DXP Enterprises	0	2	2	0	2.50
Otis Worldwide	1	7	3	0	2.18

DXP Enterprises presently has a consensus target price of $154.00, suggesting a potential upside of 5.29%. Otis Worldwide has a consensus target price of $97.64, suggesting a potential upside of 33.26%. Given Otis Worldwide’s higher possible upside, analysts clearly believe Otis Worldwide is more favorable than DXP Enterprises.

Institutional and Insider Ownership

74.8% of DXP Enterprises shares are owned by institutional investors. Comparatively, 88.0% of Otis Worldwide shares are owned by institutional investors. 22.7% of DXP Enterprises shares are owned by company insiders. Comparatively, 0.1% of Otis Worldwide shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
DXP Enterprises	4.27%	18.16%	5.70%
Otis Worldwide	10.11%	-29.39%	14.86%

Summary

Otis Worldwide beats DXP Enterprises on 8 of the 14 factors compared between the two stocks.

About DXP Enterprises

DXP Enterprises, Inc., together with its subsidiaries, engages in distributing maintenance, repair, and operating (MRO) products, equipment, and services in the United States and Canada. It operates through three segments: Service Centers (SC), Supply Chain Services (SCS), and Innovative Pumping Solutions (IPS). The SC segment offers MRO products, equipment, and integrated services, including technical expertise and logistics services. It offers a range of MRO products in the rotating equipment, bearing, power transmission, hose, fluid power, metal working, fastener, industrial supply, safety products, and safety services categories. This segment serves customers in the oil and gas, food and beverage, petrochemical, transportation, other general industrial, mining, construction, chemical, municipal, agriculture, and pulp and paper industries. The SCS segment manages procurement and inventory vinventory optimization and management, storeroom management, transaction consolidation and control, vendor oversight and procurement cost optimization, productivity improvement, and customized reporting services. Its programs include SmartAgreement, a procurement solution for various MRO categories; SmartBuy, an on-site or centralized MRO procurement solution; SmartSource, an on-site procurement and storeroom management solution; SmartStore, an e-Catalog solution; SmartVend, an industrial dispensing solution; and SmartServ, an integrated service pump solution. The IPS segment fabricates and assembles custom-made pump packages; remanufactures pumps; and manufactures branded private label pumps. DXP Enterprises, Inc. was founded in 1908 and is based 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.