Head to Head Analysis: Alta Equipment Group (NYSE:ALTG) and Otis Worldwide (NYSE:OTIS)

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

Analyst Recommendations

This is a summary of recent recommendations and price targets for Otis Worldwide and Alta Equipment Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Otis Worldwide	1	7	3	0	2.18
Alta Equipment Group	1	2	2	0	2.20

Otis Worldwide currently has a consensus price target of $97.64, suggesting a potential upside of 37.05%. Alta Equipment Group has a consensus price target of $12.17, suggesting a potential upside of 94.64%. Given Alta Equipment Group’s stronger consensus rating and higher possible upside, analysts plainly believe Alta Equipment Group is more favorable than Otis Worldwide.

Volatility & Risk

Otis Worldwide has a beta of 0.95, meaning that its share price is 5% less volatile than the S&P 500. Comparatively, Alta Equipment Group has a beta of 1.82, meaning that its share price is 82% more volatile than the S&P 500.

Insider and Institutional Ownership

88.0% of Otis Worldwide shares are owned by institutional investors. Comparatively, 73.6% of Alta Equipment Group shares are owned by institutional investors. 0.1% of Otis Worldwide shares are owned by insiders. Comparatively, 20.5% of Alta Equipment Group shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Otis Worldwide	10.11%	-29.39%	14.86%
Alta Equipment Group	-4.33%	-3,253.61%	-5.70%

Valuation and Earnings

This table compares Otis Worldwide and Alta Equipment Group”s 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	1.89	$1.38 billion	$3.76	18.95
Alta Equipment Group	$1.84 billion	0.11	-$80.30 million	($2.53)	-2.47

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

Summary

Otis Worldwide beats Alta Equipment Group 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 Alta Equipment Group

Alta Equipment Group Inc. owns and operates integrated equipment dealership platforms in the United States. It operates through three segments: Material Handling, Construction Equipment, and Master Distribution. The company operates a branch network that sells, rents, and provides parts and service support for various categories of specialized equipment, including lift trucks and other material handling equipment, heavy and compact earthmoving equipment, crushing and screening equipment, environmental processing equipment, cranes and aerial work platforms, paving and asphalt equipment, and other construction equipment and related products. It also offers repair and maintenance services for its equipment. In addition, the company designs and builds warehouses; provides automated equipment installation and system integration solutions; and distributes environmental processing equipment. It serves various manufacturing, food and beverage, automotive, municipal/government, education, pharmaceutical and medical, wholesale and retail distribution, construction, agriculture, road building, mining, recycling, and waste management sectors. Alta Equipment Group Inc. was founded in 1984 and is headquartered in Livonia, Michigan.