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HEI-A vs OTIS

HEI-A
HEICO Corporation
NEUTRAL
Price
$205.52
Market Cap
$28.67B
Sector
Industrials
AI Confidence
85%
OTIS
Otis Worldwide Corporation
NEUTRAL
Price
$77.88
Market Cap
$29.88B
Sector
Industrials
AI Confidence
80%

Valuation

P/E Ratio
HEI-A
40.62
OTIS
20.71
Forward P/E
HEI-A
47.68
OTIS
16.51
P/B Ratio
HEI-A
6.36
OTIS
-5.63
P/S Ratio
HEI-A
6.19
OTIS
2.04
EV/EBITDA
HEI-A
24.88
OTIS
15.05

Profitability

Gross Margin
HEI-A
39.62%
OTIS
30.55%
Operating Margin
HEI-A
22.24%
OTIS
15.39%
Profit Margin
HEI-A
15.38%
OTIS
10.11%
ROE
HEI-A
16.57%
OTIS
--
ROA
HEI-A
7.85%
OTIS
13.35%

Growth

Revenue Growth
HEI-A
14.4%
OTIS
6.4%
Earnings Growth
HEI-A
12.5%
OTIS
42.6%

Financial Health

Debt/Equity
HEI-A
0.5
OTIS
--
Current Ratio
HEI-A
3.06
OTIS
0.84
Quick Ratio
HEI-A
1.27
OTIS
0.71

Dividends

Dividend Yield
HEI-A
0.12%
OTIS
2.18%
Payout Ratio
HEI-A
4.75%
OTIS
44.68%

AI Verdict

HEI-A NEUTRAL

HEI-A exhibits strong fundamental health with a Piotroski F-Score of 7/9 and a robust current ratio of 3.06, indicating a high-quality balance sheet. However, the stock is significantly overvalued relative to its Graham Number ($60.64) and growth-based intrinsic value ($130.29), trading at a steep premium with a P/E of 40.62. While long-term growth in the Aerospace & Defense sector remains a tailwind, the current technical trend is bearish (0/100) and the forward P/E is expanding, suggesting a potential valuation correction.

Strengths
Strong financial health (Piotroski F-Score 7/9)
Excellent liquidity with a Current Ratio of 3.06
Low leverage with a Debt/Equity ratio of 0.50
Risks
Severe valuation premium over intrinsic and Graham values
Bearish technical momentum (0/100 trend score, -16.6% 6-month return)
Forward P/E (47.68) is higher than trailing P/E, suggesting slowing earnings growth relative to price
OTIS NEUTRAL

OTIS presents a classic valuation-momentum conflict. While the stock trades at a significant discount to its growth-based intrinsic value ($110.92) and analyst targets ($94.36), the deterministic health is only 'Stable' with a Piotroski F-Score of 4/9. Financial health is pressured by a current ratio of 0.84 and negative book value, while aggressive insider selling and a 0/100 technical trend signal strong short-term bearishness. The company remains profitable with a healthy dividend payout, but the lack of positive price momentum and insider confidence offsets the attractive valuation.

Strengths
Significant discount to intrinsic value ($110.92) and analyst target ($94.36)
Strong operating margins (15.39%) and ROA (13.35%)
Sustainable dividend profile with a 44.68% payout ratio
Risks
Liquidity risk indicated by a current ratio of 0.84 (below 1.0)
Negative shareholders' equity as evidenced by the -5.63 Price/Book ratio
Strong bearish insider sentiment with significant selling by the CEO and General Counsel

Compare Another Pair

HEI-A vs OTIS: Head-to-Head Comparison

This page compares HEICO Corporation (HEI-A) and Otis Worldwide Corporation (OTIS) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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