Which Is a Better Investment, Otis Worldwide Corporation or The Timken Company Stock?

By Rosalio Madrigal
August 01, 2026
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Sifting through countless of stocks in the Machinery industry can be tedious, and sometimes two stocks are just too similar to judge which is the better investment. If you’re on the fence about investing in Otis Worldwide Corporation or The Timken Company because you’re not sure how they measure up, it’s important to compare them on a few factors before making your decision.

Read on to learn how Otis Worldwide Corporation and The Timken Company compare based on key financial metrics to determine which better meets your investment needs.

About Otis Worldwide Corporation and The Timken Company

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.

The Timken Company designs, manufactures, and sells engineered bearings and industrial motion products, and related services in the United States and internationally. The company operates in two segments, Engineered Bearings and Industrial Motion. The Engineered Bearings segment provides various bearing products, including tapered, spherical, and cylindrical roller bearings; plain bearings, metal-polymer bearings, and rod end bearings; radial, angular, and precision ball bearings; thrust and specialty ball bearings; journal bearings; and housed or mounted bearings. This segment serves wind energy, agriculture, construction, food and beverage, metals and mining, automotive and truck, aerospace, rail, and other industries under the Timken, GGB, and Fafnir brands. The Industrial Motion segment offers a portfolio of engineered products, such as industrial drives, automatic lubrication systems, linear motion products and systems, chains, belts, couplings, filtration systems, seals, and industrial clutches and brakes, as well as industrial drivetrain and bearing repairing services. This segment serves a range of industries comprising solar energy, automation, construction, agriculture and turf, passenger rail, marine, aerospace, packaging and logistics, medical, and others under the Philadelphia Gear, Cone Drive, Rollon, Nadella, Groeneveld, BEKA, Diamond, Drives, Timken Belts, Spinea, Des-Case, Lagersmit, Lovejoy, CGI, and PT Tech brands. The Timken Company was founded in 1899 and is headquartered in North Canton, Ohio.

Latest Machinery and Otis Worldwide Corporation, The Timken Company Stock News

As of July 31, 2026, Otis Worldwide Corporation had a $27.4 billion market capitalization, compared to the Machinery median of $3.9 million. Otis Worldwide Corporation’s stock is down 17.6% in 2026, in the previous five trading days and down 16.75% in the past year.

Currently, Otis Worldwide Corporation’s price-earnings ratio is 18.5. Otis Worldwide Corporation’s trailing 12-month revenue is $14.9 billion with a 10.2% net profit margin. Year-over-year quarterly sales growth most recently was 7.3%. Analysts expect adjusted earnings to reach $4.067 per share for the current fiscal year. Otis Worldwide Corporation currently has a 2.4% dividend yield.

As of July 31, 2026, The Timken Company had a $9.6 billion market cap, putting it in the 77th percentile of all stocks. The Timken Company’s stock is up 63.5% in 2026, down 2.7% in the previous five trading days and up 83.96% in the past year.

Currently, The Timken Company’s price-earnings ratio is 31.3. The Timken Company’s trailing 12-month revenue is $4.7 billion with a 6.6% net profit margin. Year-over-year quarterly sales growth most recently was 8.0%. Analysts expect adjusted earnings to reach $6.157 per share for the current fiscal year. The Timken Company currently has a 1.0% dividend yield.

How We Compare Otis Worldwide Corporation and The Timken Company Stock Grades

Stock evaluation requires access to huge amounts of data and the knowledge and time to sift through it all, make sense of financial ratios, read income statements and analyze recent stock movements. AAII created A+ Investor, a robust data suite that condenses data research in an actionable and customizable way suitable for investors of all knowledge levels, to help investors streamline and work through such data.

AAII’s proprietary stock grades come with A+ Investor. These offer intuitive A‐F grades for each of five key investing factors: value, growth, momentum, earnings estimate revisions and quality. Here, we’ll take a closer look at Otis Worldwide Corporation and The Timken Company’s stock grades to see how they measure up against one another.

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Otis Worldwide Corporation and The Timken Company Growth Grades

Company Ticker Growth
Otis Worldwide Corporation OTIS B
The Timken Company TKR B

The foundation of growth investing is seeking out stocks of companies exhibiting strong, consistent and prolonged growth that is expected to continue into the future.

In order to compute the growth score and assign it a letter grade, the percentile ranks for each of three components‐consistency of annual sales growth, five-year sales growth rankings adjusted for extreme levels, and consistency of positive annual cash from operations‐must be determined. These three rank figures are added together, and the sum is ranked against the entire stock universe to arrive at a company’s Growth Score to create an equal distribution of grades.

The companies in the bottom 20% of the stock universe receive Growth Grades of F, considered to be very weak, while those in the top 20% receive A grades, which are considered very strong.

Otis Worldwide Corporation has a Growth Score of 73, which is Strong. The Timken Company has a Growth Score of 73, which is Strong.

The Growth Grade Winner: It’s a Tie!

Looking at the Growth Grade breakdown above, both Otis Worldwide Corporation and The Timken Company have a grade of B. For investors who focus solely on a company’s upward growth, further research should be conducted into both companies’ other financial metrics before deciding whether to invest.

Otis Worldwide Corporation and The Timken Company’s Quality Grades

Company Ticker Quality
Otis Worldwide Corporation OTIS B
The Timken Company TKR B

Like the Value Grade, AAII’s A+ Investor Quality Grade comes from the percentile rank of key metrics. Specifically, the Quality Score is the percentile rank of the average of the percentile ranks of return on assets (ROA), return on invested capital (ROIC), gross profit relative to assets, buyback yield, change in total liabilities to assets, accruals, Z double prime bankruptcy risk (Z) score and the F-Score.

The score is variable, meaning it can consider all eight measures or, should any of the eight measures not be valid, the remaining measures that are valid. To be assigned a Quality Score, stocks must have a valid (non-null) measure and corresponding ranking for at least four of the eight quality measures.

The Quality Score is used to assess the underlying “quality” of a particular stock. A higher-quality stock possesses traits associated with upside potential and reduced downside risk. Backtesting of the Quality Grade shows that stocks with higher grades, on average, outperformed stocks with lower grades over the period of 1998 through 2019.

Stocks receive better grades (higher scores) for having higher scores for the quality subcomponents and worse grades (lower scores) for lower scores for the subcomponents.

Otis Worldwide Corporation has a Quality Score of 61, which is Strong. The Timken Company has a Quality Score of 79, which is Strong.

The Quality Grade Winner: It’s a Tie!

Looking at the Quality Grade breakdown above, both Otis Worldwide Corporation and The Timken Company have a grade of B. For investors who focus solely on a company’s overall quality, you will need to conduct further research into both companies to see if they are a good fit for your portfolio. As a good rule of thumb, you should always analyze multiple factors based on a wide range of metrics before choosing a company to invest in.

Otis Worldwide Corporation and The Timken Company’s Estimate Revisions Grades

Company Ticker Earnings Estimate
Otis Worldwide Corporation OTIS D
The Timken Company TKR B

Earnings estimate revisions scores consider the magnitude of a company’s earnings surprise in its last two reported fiscal quarters. Often, positive surprises beget further positive surprises‐or at least continued sales growth (the exact opposite is generally true, too).

Estimate revisions offer an indication of what analysts are thinking about the short-term prospects of a firm. Estimate revisions are based on the statistical significance of a firm’s last two quarterly earnings surprises and the percentage change in its consensus estimate for the current fiscal year over the past month and past three months.

Otis Worldwide Corporation has a Earnings Estimate Score of 23, which is Negative. The Timken Company has a Earnings Estimate Score of 73, which is Positive.

The Earnings Estimate Revisions Grade Winner: The Timken Company

As you can clearly see from the Earnings Estimate Revisions Grade breakdown above, The Timken Company has a better Earnings Estimate Revisions Grade than Otis Worldwide Corporation. For those who are specifically looking for companies with better short-term prospects when compared to other companies in the same industry, The Timken Company could be a good stock to invest in. However, it’s important to analyze multiple factors based on a wide range of metrics before deciding whether to buy.

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Other Otis Worldwide Corporation and The Timken Company Grades

In addition to Growth, Estimate Revisions and Quality, A+ Investor also provides grades for Value and Momentum.

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Momentum grades help uncover stocks experiencing anomalously high rates of return; research finds that stocks with high relative levels of momentum tend to outperform, whereas those with low levels of momentum tend to continue underperforming.

Successful stock investing involves buying low and selling high, so stock valuation is an important consideration for stock selection. Buying stocks that are going to go up typically means buying stocks that are undervalued in the first place, although momentum investors may argue that point.

These 2 key factors, when combined with the above, provide a holistic view into a particular stock. Further, by joining A+ Investor you can see whether Otis Worldwide Corporation and The Timken Company pass any of our 60+ stock screens that have outperformed the market since their creation.

So, Which Is the Better Investment, Otis Worldwide Corporation or The Timken Company Stock?

Overall, Otis Worldwide Corporation stock has a Growth Score of 73, Estimate Revisions Score of 23 and Quality Score of 61.

The Timken Company stock has a Growth Score of 73, Estimate Revisions Score of 73 and Quality Score of 79.

Comparing Otis Worldwide Corporation and The Timken Company’s grades, scores and metrics can act as a solid basis to determine whether they may be a good investment or not. You’ll also want to look at your portfolio’s asset allocation as well as your risk tolerance and financial goals to see if either of these stocks would make a good fit for you. AAII can help you figure out which investments align with your individual needs and preferences.

Investors are encouraged to do their own due diligence and research. In this way, individuals can effectively become managers of their own assets‐without having to rely on others for financial independence. You can count on AAII for timeless articles on financial planning and stock-picking, unbiased research and actionable analysis.

A+ Investor adds to our qualitative teaching with a powerful data suite to help you whittle down investment choices to find stocks, exchange-traded funds (ETFs) or mutual funds that meet your needs.

Learn More About A+ Investor

AAII Disclaimer

We make no representations or warranties that any investor will, or is likely to, achieve profits similar to those shown, because past, hypothetical or simulated performance is not necessarily indicative of future results. Before making an investment decision, you should consider your circumstances and whether the information on our content is applicable to your situation. This information was prepared in good faith, and we accept no liability for any errors or omissions. The full disclaimer can be read here.



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