OTIS vs ALLE

For growth investors, Allegion plc (ALLE) is the stronger pick with 7.

8% revenue growth year-over-year, versus 1. 2% for Otis Worldwide Corporation (OTIS). Allegion plc (ALLE) offers the better valuation at 18. 4x trailing P/E (15. 6x forward), making it the more compelling value choice. Analysts rate Otis Worldwide Corporation (OTIS) a "Hold" — based on 13 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Allegion plc (ALLE) is the cheapest at 18.

4x versus Otis Worldwide Corporation at 22. 1x. On forward P/E, Allegion plc is actually cheaper at 15. 6x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Allegion plc wins at 0. 92x versus Otis Worldwide Corporation's 1. 67x — a PEG below 1. 0 traditionally signals the market is underpricing earnings growth.

Over the past 5 years, Otis Worldwide Corporation (OTIS) delivered a total return of +7.

7%, compared to +3. 2% for Allegion plc (ALLE). Over 10 years, the gap is even starker: ALLE returned +127. 3% versus OTIS's +87. 8%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Otis Worldwide Corporation (OTIS) is the lower-risk stock at 0.

39β versus Allegion plc's 0. 67β — meaning ALLE is approximately 70% more volatile than OTIS relative to the S&P 500.

By revenue growth (latest reported year), Allegion plc (ALLE) is pulling ahead at 7.

8% versus 1. 2% for Otis Worldwide Corporation (OTIS). On earnings-per-share growth, the picture is similar: Allegion plc grew EPS 9. 1% year-over-year, compared to -14. 0% for Otis Worldwide Corporation. Over a 3-year CAGR, ALLE leads at 7. 5% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Allegion plc (ALLE) is the more profitable company, earning 15.

8% net margin versus 9. 6% for Otis Worldwide Corporation — meaning it keeps 15. 8% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ALLE leads at 21. 1% versus 14. 8% for OTIS. At the gross margin level — before operating expenses — ALLE leads at 45. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Allegion plc (ALLE) is the more undervalued stock at a PEG of 0. 92x versus Otis Worldwide Corporation's 1. 67x. A PEG below 1. 0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Allegion plc (ALLE) trades at 15. 6x forward P/E versus 18. 4x for Otis Worldwide Corporation — 2. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for ALLE: 26. 1% to $172. 50.

All stocks in this comparison pay dividends.

Otis Worldwide Corporation (OTIS) offers the highest yield at 2. 1%, versus 1. 5% for Allegion plc (ALLE).

For long-horizon retirement investors, Otis Worldwide Corporation (OTIS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

39), 2. 1% yield). Both have compounded well over 10 years (OTIS: +87. 8%, ALLE: +127. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.