Allegion (NYSE:ALLE – Get Free Report) and Carlisle Companies (NYSE:CSL – Get Free Report) are both large-cap industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their analyst recommendations, profitability, risk, valuation, institutional ownership, dividends and earnings.
Institutional and Insider Ownership
92.2% of Allegion shares are owned by institutional investors. Comparatively, 89.5% of Carlisle Companies shares are owned by institutional investors. 0.6% of Allegion shares are owned by company insiders. Comparatively, 1.3% of Carlisle Companies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Allegion and Carlisle Companies”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Allegion | $4.07 billion | 3.15 | $643.80 million | $7.62 | 19.76 |
| Carlisle Companies | $5.02 billion | 2.53 | $740.70 million | $17.43 | 18.37 |
Carlisle Companies has higher revenue and earnings than Allegion. Carlisle Companies is trading at a lower price-to-earnings ratio than Allegion, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Allegion and Carlisle Companies’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Allegion | 15.36% | 35.41% | 13.80% |
| Carlisle Companies | 14.21% | 47.58% | 13.46% |
Analyst Recommendations
This is a breakdown of recent ratings and target prices for Allegion and Carlisle Companies, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Allegion | 0 | 6 | 3 | 0 | 2.33 |
| Carlisle Companies | 0 | 6 | 5 | 0 | 2.45 |
Allegion presently has a consensus target price of $162.50, indicating a potential upside of 7.93%. Carlisle Companies has a consensus target price of $394.57, indicating a potential upside of 23.24%. Given Carlisle Companies’ stronger consensus rating and higher probable upside, analysts plainly believe Carlisle Companies is more favorable than Allegion.
Volatility & Risk
Allegion has a beta of 0.81, indicating that its stock price is 19% less volatile than the S&P 500. Comparatively, Carlisle Companies has a beta of 0.84, indicating that its stock price is 16% less volatile than the S&P 500.
Dividends
Allegion pays an annual dividend of $2.20 per share and has a dividend yield of 1.5%. Carlisle Companies pays an annual dividend of $5.00 per share and has a dividend yield of 1.6%. Allegion pays out 28.9% of its earnings in the form of a dividend. Carlisle Companies pays out 28.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Allegion has increased its dividend for 11 consecutive years and Carlisle Companies has increased its dividend for 48 consecutive years. Carlisle Companies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Carlisle Companies beats Allegion on 12 of the 17 factors compared between the two stocks.
About Allegion
Allegion plc manufactures and sells mechanical and electronic security products and solutions worldwide. The company offers door controls and systems and exit devices; locks, locksets, portable locks, and key systems and services; electronic security products and access control systems; time, attendance, and workforce productivity systems; doors, accessories, and other. It also provides services and software, which includes inspection, maintenance, and repair services for its automatic entrance solutions; and software as a service, including access control, IoT integration, and workforce management solutions, as well as aftermarket services, design and installation offerings, and locksmith services. The company sells its products and solutions to end-users in commercial, institutional, and residential facilities, including education, healthcare, government, hospitality, retail, commercial office, and single and multi-family residential markets under the CISA, Interflex, LCN, Schlage, SimonsVoss, and Von Duprin brands. It sells its products and solutions through distribution and retail channels, such as specialty distribution, e-commerce, and wholesalers, as well as through various retail channels comprising do-it-yourself home improvement centers, online and e-commerce platforms, and small specialty showroom outlets. Allegion plc was incorporated in 2013 and is headquartered in Dublin, Ireland.
About Carlisle Companies
Carlisle Companies Incorporated operates as a manufacturer and supplier of building envelope products and solutions in the United States, Europe, North America, Asia and the Middle East, Africa, and internationally. It operates through two segments: Carlisle Construction Materials and Carlisle Weatherproofing Technologies. The company produces single-ply roofing products, and warranted roof systems and accessories, including ethylene propylene diene monomer, thermoplastic polyolefin and polyvinyl chloride membrane, polyiso insulation, and engineered metal roofing and wall panel systems for commercial and residential buildings. It also offers building envelope solutions, including high-performance waterproofing and moisture protection products, protective roofing underlayments, fully integrated liquid and sheet applied air/vapor barriers, sealants/primers and flashing systems, roof coatings and mastics, spray polyurethane foam and coating systems, block-molded expanded polystyrene insulation, and engineered products for HVAC applications. It sells its products under the Carlisle SynTec, Versico, WeatherBond, Hunter Panels, Resitrix, and Hertalan brands. Carlisle Companies Incorporated was founded in 1917 and is headquartered in Scottsdale, Arizona.
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