Otis Worldwide vs Xylem
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KIRA’s take AI analyst
I put Otis Worldwide and Xylem side by side, using each one’s latest annual report. Here is what stands out:
- Otis Worldwide is the larger business, with $14.4B of revenue in fiscal 2025 against $9.0B for Xylem, about 1.6 times as much.
- Xylem grew revenue faster (5.5%, against 1.2%).
- Otis Worldwide kept more of each dollar of sales as operating profit (14.8% operating margin, against 13.5%).
- Otis Worldwide earned a higher return on the capital invested in it (116.6%, against 8.1%).
- Investors pay more for each dollar of Xylem’s earnings: a P/E of 25.8x 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.
Otis Worldwide
OTIS
3/9
Operating marginReturn on capitalShare count change
Xylem
XYL
6/9
Revenue growth5-year growthNet marginFCF marginPiotroski F-scoreNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | OTIS FY25 | XYL FY25 |
|---|---|---|
| Size | ||
| Market cap | $28.9B | $25.6B |
| Revenue | $14.4B | $9.0B |
| Free cash flow | $1.4B | $910M |
| Net income | $1.4B | $957M |
| Growth | ||
| Revenue growth | 1.2% | 5.5% |
| 5-year growth | 2.5% | 13.1% |
| Share count change | −2.4% | 0.2% |
| Profitability | ||
| Gross margin | — | 38.5% |
| Operating margin | 14.8% | 13.5% |
| Net margin | 9.6% | 10.6% |
| FCF margin | 10.0% | 10.1% |
| Return on capital | 116.6% | 8.1% |
| Return on equity | — | 8.7% |
| Balance sheet | ||
| Net debt | $6.9B | $1.1B |
| Net debt / EBITDA | 3.0x | 0.6x |
| Dividends and buybacks | $1.5B | $406M |
| Valuation & quality | ||
| P/E | 19.3x | 25.8x |
| Piotroski F-score | 5 | 6 |
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.