W. W. Grainger vs Otis Worldwide
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KIRA’s take AI analyst
I put W. W. Grainger and Otis Worldwide side by side, using each one’s latest annual report. Here is what stands out:
- W. W. Grainger is the larger business, with $17.9B of revenue in fiscal 2025 against $14.4B for Otis Worldwide.
- W. W. Grainger grew revenue faster (4.5%, against 1.2%).
- Otis Worldwide kept more of each dollar of sales as operating profit (14.8% operating margin, against 13.9%).
- Otis Worldwide turned more of its sales into free cash flow (10.0% FCF margin, against 7.4%).
- Otis Worldwide earned a higher return on the capital invested in it (116.6%, against 32.3%).
- Investors pay more for each dollar of W. W. Grainger’s earnings: a P/E of 34.6x against 19.3x for Otis Worldwide.
Who comes out ahead
Of the 9 measures where higher (or lower) is clearly better, how many each company leads.
W. W. Grainger
GWW
4/9
Revenue growth5-year growthPiotroski F-scoreNet debt / EBITDA
Otis Worldwide
OTIS
5/9
Operating marginNet marginFCF marginReturn on capitalShare count change
Side by side
Best in the row
| Latest fiscal year | GWW FY25 | OTIS FY25 |
|---|---|---|
| Size | ||
| Market cap | $64.1B | $28.9B |
| Revenue | $17.9B | $14.4B |
| Free cash flow | $1.3B | $1.4B |
| Net income | $1.7B | $1.4B |
| Growth | ||
| Revenue growth | 4.5% | 1.2% |
| 5-year growth | 8.8% | 2.5% |
| Share count change | −2.0% | −2.4% |
| Profitability | ||
| Gross margin | 39.1% | — |
| Operating margin | 13.9% | 14.8% |
| Net margin | 9.5% | 9.6% |
| FCF margin | 7.4% | 10.0% |
| Return on capital | 32.3% | 116.6% |
| Return on equity | 48.1% | — |
| Balance sheet | ||
| Net debt | $1.9B | $6.9B |
| Net debt / EBITDA | 0.7x | 3.0x |
| Dividends and buybacks | $1.5B | $1.5B |
| Valuation & quality | ||
| P/E | 34.6x | 19.3x |
| Piotroski F-score | 6 | 5 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.