Head to Head Analysis: Otis Worldwide (NYSE:OTIS) vs. Hillman Solutions (NASDAQ:HLMN)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Hillman Solutions	2.57%	9.11%	4.70%
Otis Worldwide	10.17%	-28.50%	14.39%

Volatility and Risk

Hillman Solutions has a beta of 1.38, meaning that its share price is 38% more volatile than the S&P 500. Comparatively, Otis Worldwide has a beta of 0.88, meaning that its share price is 12% less volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations for Hillman Solutions and Otis Worldwide, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Hillman Solutions	1	1	2	0	2.25
Otis Worldwide	1	5	4	0	2.30

Hillman Solutions currently has a consensus target price of $12.67, indicating a potential upside of 67.77%. Otis Worldwide has a consensus target price of $92.91, indicating a potential upside of 32.46%. Given Hillman Solutions’ higher possible upside, equities research analysts plainly believe Hillman Solutions is more favorable than Otis Worldwide.

Insider & Institutional Ownership

98.1% of Hillman Solutions shares are held by institutional investors. Comparatively, 88.0% of Otis Worldwide shares are held by institutional investors. 5.3% of Hillman Solutions shares are held by company insiders. Comparatively, 0.1% of Otis Worldwide shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Earnings and Valuation

This table compares Hillman Solutions and Otis Worldwide”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hillman Solutions	$1.55 billion	0.95	$40.31 million	$0.22	34.32
Otis Worldwide	$14.91 billion	1.79	$1.38 billion	$3.89	18.03

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

Summary

Otis Worldwide beats Hillman Solutions on 8 of the 14 factors compared between the two stocks.

About Hillman Solutions

Founded in 1964 and headquartered in Cincinnati, Ohio, Hillman is a leading North American provider of complete hardware solutions, delivered with industry best customer service to over 40,000 locations. Hillman designs innovative product and merchandising solutions for complex categories that deliver an outstanding customer experience to home improvement centers, mass merchants, national and regional hardware stores, pet supply stores, and OEM & Industrial customers. Leveraging a world-class distribution and sales network, Hillman delivers a “small business” experience with “big business” efficiency.

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.