Head to Head Review: Halma (OTCMKTS:HLMAF) versus NAPCO Security Technologies (NASDAQ:NSSC)

Halma (OTCMKTS:HLMAF) and NAPCO Security Technologies (NASDAQ:NSSC) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, risk, valuation and analyst recommendations.

Risk and Volatility

Halma has a beta of 1.43, indicating that its share price is 43% more volatile than the S&P 500. Comparatively, NAPCO Security Technologies has a beta of 1.52, indicating that its share price is 52% more volatile than the S&P 500.

Insider & Institutional Ownership

85.1% of NAPCO Security Technologies shares are held by institutional investors. 5.7% of NAPCO Security Technologies shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation & Earnings

This table compares Halma and NAPCO Security Technologies”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Halma	$2.87 billion	6.42	$378.18 million	N/A	N/A
NAPCO Security Technologies	$181.62 million	7.52	$43.41 million	$1.23	31.14

Halma has higher revenue and earnings than NAPCO Security Technologies.

Analyst Recommendations

This is a breakdown of current recommendations for Halma and NAPCO Security Technologies, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Halma	1	3	2	3	2.78
NAPCO Security Technologies	0	2	6	0	2.75

NAPCO Security Technologies has a consensus price target of $47.50, suggesting a potential upside of 24.02%. Given NAPCO Security Technologies’ higher possible upside, analysts plainly believe NAPCO Security Technologies is more favorable than Halma.

Profitability

This table compares Halma and NAPCO Security Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Halma	N/A	N/A	N/A
NAPCO Security Technologies	23.76%	26.09%	22.26%

Summary

NAPCO Security Technologies beats Halma on 9 of the 13 factors compared between the two stocks.

About Halma

Halma plc, together its subsidiaries, provides technology solutions in the safety, health, and environmental markets in the United States, Mainland Europe, the United Kingdom, the Asia Pacific, Africa, the Middle East, and internationally. It operates through three segments: Safety, Environmental & Analysis, and Medical. The Safety segment provides fire safety, fire detection and fire suppression; safe movement in public, commercial, and industrial spaces; elevator safety; communications in emergencies; control of access in potentially hazardous industrial and commercial environments; electrical safety; and the safe management of pipelines and storage assets solutions. This segment serves shops and restaurants, healthcare facilities, and offices and stadiums; industrial and logistics assets; public spaces and critical infrastructure; and aerospace, and rail and automotive markets. The Environmental & Analysis segment offers optical, optoelectronic, and spectral imaging systems; environmental monitoring, water and waste water analysis and treatment, gas analysis and detection, and optical analysis systems. It serves the optical analysis, water analysis and treatment, gas detection, and environmental monitoring markets. The Medical segment provides critical fluidic components used by medical diagnostics and original equipment manufacturers; components, devices and systems that provide information and analytics to understand patient health and enable providers to make decisions across the continuum of care; technologies and solutions to enable in-vitro diagnostic systems and life-science discoveries and development; and technologies that enable treatment across clinical specialties. This segment serves the life sciences, health assessment and analytics, and therapeutic solutions market. The company was incorporated in 1894 and is headquartered in Amersham, the United Kingdom.

About NAPCO Security Technologies

Napco Security Technologies, Inc. develops, manufactures, and sells electronic security systems for commercial, residential, institutional, industrial, and governmental applications in the United States and internationally. Its access control systems include various types of identification readers, control panels, PC-based computers, and electronically activated door-locking devices; intrusion and fire alarm systems, consists of various detectors, a control panel, a digital keypad and signaling equipment; and door locking devices comprise microprocessor-based electronic door locks with push button, card readers and bio-metric operation, door alarms, mechanical door locks, and simple dead bolt locks. The company’s alarm systems include automatic communicators, cellular communication devices, control panels, combination control panels/digital communicators and digital keypad systems, fire alarm control panels, and area detectors; and video surveillance systems comprise video cameras, control panels, video monitors, or PCs. It also buys and resells various identification readers, video cameras, PC-based computers, and various peripheral equipment for access control and video surveillance systems; offers school security products; and markets peripheral and related equipment manufactured by other companies. The company markets and sells its products to independent distributors, dealers, and installers of security equipment. Napco Security Technologies, Inc. was founded in 1969 and is headquartered in Amityville, New York.