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ITW vs OTIS
Which Stock Would AI Choose? Illinois Tool Works (ITW) vs. Otis Worldwide (OTIS) Stock Comparison
Key Takeaways
- Illinois Tool Works (ITW) has demonstrated stronger relative performance over the past year compared to Otis Worldwide (OTIS), with positive returns versus notable declines for OTIS.
- ITW operates as a diversified industrial manufacturer across multiple segments, while OTIS focuses primarily on elevators, escalators, and related services in the specialty industrial machinery sector.
- Recent market activity shows ITW maintaining relative stability amid broader industrial sector movements, whereas OTIS has faced greater pressure from underperformance trends.
- Both companies offer dividend yields around 2.3-2.4%, with ITW providing a higher absolute payout and OTIS showing a lower payout ratio relative to earnings.
- Analyst consensus indicates higher potential upside for OTIS, though ITW exhibits slightly higher market beta alignment at 1.0 versus OTIS at 0.9.
- Sector exposure differences highlight ITW’s broader industrial diversification against OTIS’s concentrated positioning in building infrastructure and maintenance services.
Introduction
This comparison examines Illinois Tool Works (ITW) and Otis Worldwide (OTIS), two established players in the industrial sector. ITW represents a diversified manufacturer with exposure across automotive, food equipment, and construction products, while OTIS specializes in vertical transportation solutions. Investors and traders seeking to understand relative performance, business model contrasts, and market positioning within industrials may find this analysis relevant for portfolio allocation decisions in the current environment.
ITW Overview and Recent Performance
Illinois Tool Works (ITW) engages in the production of engineered components and systems for diverse end markets. In recent weeks, the stock has shown resilience relative to peers, contributing to year-to-date stability amid fluctuating industrial demand. Broader market activity influenced by economic indicators and sector rotation has supported sentiment, with ITW’s diversified revenue streams providing a buffer against single-segment volatility. Performance metrics reflect consistent positioning without extreme swings, aligning with its beta of approximately 1.0.
OTIS Overview and Recent Performance
Otis Worldwide (OTIS) delivers elevator and escalator products along with maintenance and modernization services globally. Recent market activity has presented challenges, with the stock experiencing underperformance over extended periods compared to broader industrials. Factors such as service contract renewals and new installation trends have shaped sentiment, though the company maintains a focused business model in building infrastructure. Volatility remains moderated with a beta near 0.9, reflecting somewhat lower market sensitivity in recent observations.
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Head-to-Head Comparison
Illinois Tool Works (ITW) and Otis Worldwide (OTIS) differ markedly in business model, with ITW’s multi-segment diversification contrasting OTIS’s specialization in elevator systems and services. Growth drivers for ITW include broad industrial exposure, while OTIS benefits from recurring maintenance revenue in urban infrastructure. Recent momentum favors ITW based on relative returns, though OTIS presents greater analyst-estimated upside potential. Risk factors include ITW’s higher beta alignment versus OTIS’s more defensive profile. Sector exposure positions ITW across cyclical industrials and OTIS within steadier building services, creating trade-offs in resilience during varying economic cycles. Market sentiment reflects these distinctions without uniform dominance by either name.
Tickeron AI Verdict
Based on observable factors including trend consistency and relative positioning in recent market activity, Tickeron’s AI would currently assign a probabilistic preference toward Illinois Tool Works (ITW) for its demonstrated stability and diversified buffers. OTIS may appeal in scenarios emphasizing potential catalysts and lower volatility. This assessment draws from performance differentials and sector dynamics without implying certainty in future outcomes.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is ITW is a Hold and OTIS is a Hold.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
ITW’s FA Score shows that 2 FA rating(s) are green whileOTIS’s FA Score has 2 green FA rating(s).
- ITW’s FA Score: 2 green, 3 red.
- OTIS’s FA Score: 2 green, 3 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
ITW’s TA Score shows that 6 TA indicator(s) are bullish while OTIS’s TA Score has 6 bullish TA indicator(s).
- ITW’s TA Score: 6 bullish, 4 bearish.
- OTIS’s TA Score: 6 bullish, 3 bearish.
Price Growth
ITW (@Industrial Machinery) experienced а +2.52% price change this week, while OTIS (@Industrial Machinery) price change was -2.07% for the same time period.
The average weekly price growth across all stocks in the @Industrial Machinery industry was -1.66%. For the same industry, the average monthly price growth was -10.08%, and the average quarterly price growth was -7.38%.
Reported Earning Dates
ITW is expected to report earnings on Jul 28, 2026.
OTIS is expected to report earnings on Oct 28, 2026.
Industries' Descriptions
@Industrial Machinery (-1.66% weekly)The industry makes and maintains machines for consumers, the industry, and most other companies. While it has traditionally been categorized as heavy industry, some smaller companies are also branching into the light category. The industry is pivotal in providing the equipment for production in businesses like agriculture, mining, industry and construction, gas, electricity and water utilities. It also supplies supporting equipment for almost all sectors of the economy, such as equipment for heating, and air conditioning of buildings. Illinois Tool Works Inc., Parker-Hannifin Corporation and Rockwell Automation Inc are some of the major U.S. companies operating in this industry.
| ITW | OTIS | ITW / OTIS | |
| Capitalization | 81.4B | 27.4B | 297% |
| EBITDA | 4.74B | 2.52B | 188% |
| Gain YTD | 16.336 | -16.773 | -97% |
| P/E Ratio | 26.28 | 18.49 | 142% |
| Revenue | 16.2B | 14.6B | 111% |
| Total Cash | N/A | 834M | - |
| Total Debt | 9.15B | 8.22B | 111% |
ITW | OTIS | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 32 | 9 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 21 Undervalued | 11 Undervalued | |
PROFIT vs RISK RATING 1..100 | 37 | 100 | |
SMR RATING 1..100 | 12 | 19 | |
PRICE GROWTH RATING 1..100 | 35 | 61 | |
P/E GROWTH RATING 1..100 | 35 | 73 | |
SEASONALITY SCORE 1..100 | 50 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
OTIS's Valuation (11) in the null industry is in the same range as ITW (21) in the Industrial Machinery industry. This means that OTIS’s stock grew similarly to ITW’s over the last 12 months.
ITW's Profit vs Risk Rating (37) in the Industrial Machinery industry is somewhat better than the same rating for OTIS (100) in the null industry. This means that ITW’s stock grew somewhat faster than OTIS’s over the last 12 months.
ITW's SMR Rating (12) in the Industrial Machinery industry is in the same range as OTIS (19) in the null industry. This means that ITW’s stock grew similarly to OTIS’s over the last 12 months.
ITW's Price Growth Rating (35) in the Industrial Machinery industry is in the same range as OTIS (61) in the null industry. This means that ITW’s stock grew similarly to OTIS’s over the last 12 months.
ITW's P/E Growth Rating (35) in the Industrial Machinery industry is somewhat better than the same rating for OTIS (73) in the null industry. This means that ITW’s stock grew somewhat faster than OTIS’s over the last 12 months.
| ITW | OTIS | |
|---|---|---|
| RSI ODDS (%) | 2 days ago 32% | N/A |
| Stochastic ODDS (%) | 2 days ago 46% | 2 days ago 52% |
| Momentum ODDS (%) | 2 days ago 63% | 2 days ago 56% |
| MACD ODDS (%) | 2 days ago 59% | 2 days ago 58% |
| TrendWeek ODDS (%) | 2 days ago 53% | 2 days ago 52% |
| TrendMonth ODDS (%) | 2 days ago 51% | 2 days ago 48% |
| Advances ODDS (%) | 2 days ago 51% | 2 days ago 50% |
| Declines ODDS (%) | 6 days ago 40% | 4 days ago 55% |
| BollingerBands ODDS (%) | 2 days ago 48% | 2 days ago 51% |
| Aroon ODDS (%) | 2 days ago 39% | 2 days ago 42% |
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OTIS and
Correlation & Price change
A.I.dvisor indicates that over the last year, OTIS has been closely correlated with ROP. These tickers have moved in lockstep 69% of the time. This A.I.-generated data suggests there is a high statistical probability that if OTIS jumps, then ROP could also see price increases.
| Ticker / NAME | Correlation To OTIS | 1D Price Change % | ||
|---|---|---|---|---|
| OTIS | 100% | +1.64% | ||
| ROP - OTIS | 69% Closely correlated | +3.44% | ||
| SPXC - OTIS | 59% Loosely correlated | +0.12% | ||
| GE - OTIS | 49% Loosely correlated | +1.36% | ||
| ITW - OTIS | 45% Loosely correlated | +2.21% | ||
| GGG - OTIS | 45% Loosely correlated | +2.25% | ||
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