Comparing Otis Worldwide (NYSE:OTIS) & Legrand (OTCMKTS:LGRDY)

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

Earnings & Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Otis Worldwide	$14.21 billion	2.68	$1.41 billion	$4.01	23.79
Legrand	$9.11 billion	2.96	$1.24 billion	$0.86	23.73

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

Risk and Volatility

Otis Worldwide has a beta of 1.06, meaning that its stock price is 6% more volatile than the S&P 500. Comparatively, Legrand has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Otis Worldwide and Legrand, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Otis Worldwide	2	5	2	0	2.00
Legrand	0	0	1	0	3.00

Otis Worldwide currently has a consensus target price of $102.88, indicating a potential upside of 7.84%. Given Otis Worldwide’s higher possible upside, equities research analysts plainly believe Otis Worldwide is more favorable than Legrand.

Institutional & Insider Ownership

88.0% of Otis Worldwide shares are held by institutional investors. 0.2% of Otis Worldwide shares are held 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Otis Worldwide	11.48%	-31.28%	15.29%
Legrand	12.53%	15.15%	6.88%

Summary

Otis Worldwide beats Legrand on 10 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 Legrand

Legrand SA, together with its subsidiaries, manufactures, distributes, and sells electrical and digital building infrastructures in Europe, North and Central America, and internationally. The company offers energy distribution, protection, and management solutions, such as electric vehicle charging, residential and small commercial panels, switchboards and power cabinets, and UPS devices; and wiring devices, connected home and building control solutions, and guestroom solutions, as well as back, junction, DCL, and floor boxes. It also provides security, communication, and network solutions, including access security, digital home networks, emergency lighting, fire alarms, IT networks, intercom and door entry, and nurse call systems; conduits and cable management solutions comprising trunking, ducts, tubes, floor boxes, columns and feeders, and workstation solutions; industrial products, such as enclosures, connections, transformers and power supply, marking accessories and cable ties, motor control and protection, fuse protection, and industrial plugs and sockets, as well as control, button, and signaling products; installation accessories, including wiring accessories, extension cords, multi-outlet units, cable ties and fasteners, and connection boxes and terminals; and lighting products and accessories. The company's products are used in hotels, offices, data centers, shopping centers, health care, industrial, and residential buildings. It also exports its products to approximately 170 countries. Legrand SA was founded in 1865 and is headquartered in Limoges, France.