Head to Head Contrast: Albany International (NYSE:AIN) & Otis Worldwide (NYSE:OTIS)

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

Valuation and Earnings

This table compares Albany International and Otis Worldwide”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Albany International	$1.31 billion	1.46	-$57.34 million	$3.09	21.87
Otis Worldwide	$14.43 billion	2.09	$1.38 billion	$4.02	19.72

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Albany International	6.73%	14.25%	6.26%
Otis Worldwide	10.28%	-28.45%	14.13%

Institutional and Insider Ownership

97.4% of Albany International shares are owned by institutional investors. Comparatively, 88.0% of Otis Worldwide shares are owned by institutional investors. 0.6% of Albany International 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 large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Volatility and Risk

Albany International has a beta of 1.15, indicating that its share price is 15% more volatile than the S&P 500. Comparatively, Otis Worldwide has a beta of 0.87, indicating that its share price is 13% less volatile than the S&P 500.

Dividends

Albany International pays an annual dividend of $1.12 per share and has a dividend yield of 1.7%. Otis Worldwide pays an annual dividend of $1.76 per share and has a dividend yield of 2.2%. Albany International pays out 36.2% of its earnings in the form of a dividend. Otis Worldwide pays out 43.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Albany International has increased its dividend for 7 consecutive years and Otis Worldwide has increased its dividend for 5 consecutive years.

Analyst Recommendations

This is a summary of recent ratings and target prices for Albany International and Otis Worldwide, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Albany International	0	4	0	1	2.40
Otis Worldwide	2	3	4	0	2.22

Albany International presently has a consensus price target of $69.00, indicating a potential upside of 2.12%. Otis Worldwide has a consensus price target of $91.20, indicating a potential upside of 15.05%. Given Otis Worldwide’s higher probable upside, analysts plainly believe Otis Worldwide is more favorable than Albany International.

About Albany International

Albany International Corp., together with its subsidiaries, engages in the machine clothing and engineered composites businesses. The company operates in two segments, Machine Clothing (MC) and Albany Engineered Composites (AEC). The MC segment designs, manufactures, and markets paper machine clothing for use in the manufacturing of papers, paperboards, tissues, towels, pulps, nonwovens, building products, tannery, and textiles, as well as fiber cement and several other industrial applications. This segment offers paper machine clothing forming, pressing, and drying fabrics, as well as engineered processing belts; and engineered fabrics. The AEC segment 3D-woven and injected composite components for aircraft engines composite airframe and engine components for military and commercial aircraft. It operates in the United States, Switzerland, France, Brazil, China, Mexico, Germany, and internationally. The company was incorporated in 1895 and is headquartered in Rochester, New Hampshire.

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.