Financial Review: Allegion (ALLE) vs. Its Rivals

Allegion (NYSE:ALLE – Get Free Report) is one of 93 public companies in the “Building Products” industry, but how does it weigh in compared to its competitors? We will compare Allegion to similar businesses based on the strength of its earnings, risk, valuation, institutional ownership, profitability, analyst recommendations and dividends.

Earnings & Valuation

This table compares Allegion and its competitors revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Allegion $4.07 billion $643.80 million 23.10
Allegion Competitors $4.00 billion $4.65 billion 36.47

Allegion has higher revenue, but lower earnings than its competitors. Allegion is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider and Institutional Ownership

92.2% of Allegion shares are owned by institutional investors. Comparatively, 63.6% of shares of all “Building Products” companies are owned by institutional investors. 0.6% of Allegion shares are owned by insiders. Comparatively, 10.2% of shares of all “Building Products” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Volatility and Risk

Allegion has a beta of 0.82, suggesting that its share price is 18% less volatile than the S&P 500. Comparatively, Allegion’s competitors have a beta of 1.07, suggesting that their average share price is 7% more volatile than the S&P 500.

Dividends

Allegion pays an annual dividend of $2.20 per share and has a dividend yield of 1.2%. Allegion pays out 27.4% of its earnings in the form of a dividend. As a group, “Building Products” companies pay a dividend yield of 7.2% and pay out 37.6% of their earnings in the form of a dividend. Allegion has increased its dividend for 11 consecutive years.

Profitability

This table compares Allegion and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Allegion 15.74% 35.52% 14.06%
Allegion Competitors 3.69% -26.96% 5.10%

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Allegion and its competitors, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allegion 0 4 5 0 2.56
Allegion Competitors 740 3935 5067 239 2.48

Allegion currently has a consensus target price of $180.70, indicating a potential downside of 2.58%. As a group, “Building Products” companies have a potential upside of 31.47%. Given Allegion’s competitors higher possible upside, analysts clearly believe Allegion has less favorable growth aspects than its competitors.

Summary

Allegion beats its competitors on 8 of the 15 factors compared.

About Allegion

(Get Free Report)

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.

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