Head-To-Head Contrast: NAPCO Security Technologies (NASDAQ:NSSC) versus Allegion PLC (ALLE)

NAPCO Security Technologies (NASDAQ: NSSC) and Allegion PLC (NYSE:ALLE) are both industrial products companies, but which is the superior stock? We will contrast the two businesses based on the strength of their profitability, dividends, analyst recommendations, earnings, institutional ownership, risk and valuation.

Profitability

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

Net Margins Return on Equity Return on Assets
NAPCO Security Technologies 6.78% 11.09% 8.98%
Allegion PLC 10.76% 198.25% 15.21%

Earnings & Valuation

This table compares NAPCO Security Technologies and Allegion PLC’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
NAPCO Security Technologies $85.75 million 1.90 $8.06 million $0.31 27.90
Allegion PLC $2.33 billion 3.23 $503.40 million $2.60 30.49

Allegion PLC has higher revenue and earnings than NAPCO Security Technologies. NAPCO Security Technologies is trading at a lower price-to-earnings ratio than Allegion PLC, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

NAPCO Security Technologies has a beta of 0.52, indicating that its stock price is 48% less volatile than the S&P 500. Comparatively, Allegion PLC has a beta of 1.1, indicating that its stock price is 10% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for NAPCO Security Technologies and Allegion PLC, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
NAPCO Security Technologies 0 1 2 0 2.67
Allegion PLC 0 2 4 0 2.67

NAPCO Security Technologies currently has a consensus price target of $8.75, suggesting a potential upside of 1.16%. Allegion PLC has a consensus price target of $84.75, suggesting a potential upside of 6.90%. Given Allegion PLC’s higher probable upside, analysts plainly believe Allegion PLC is more favorable than NAPCO Security Technologies.

Institutional & Insider Ownership

24.6% of NAPCO Security Technologies shares are held by institutional investors. Comparatively, 92.9% of Allegion PLC shares are held by institutional investors. 37.8% of NAPCO Security Technologies shares are held by company insiders. Comparatively, 0.6% of Allegion PLC shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

Allegion PLC pays an annual dividend of $0.64 per share and has a dividend yield of 0.8%. NAPCO Security Technologies does not pay a dividend. Allegion PLC pays out 24.6% of its earnings in the form of a dividend.

Summary

Allegion PLC beats NAPCO Security Technologies on 13 of the 15 factors compared between the two stocks.

About NAPCO Security Technologies

NAPCO Security Technologies, Inc. is a manufacturer of security products, encompassing access control systems, door-locking products, intrusion and fire alarm systems and video surveillance products. These products are used for commercial, residential, institutional, industrial and governmental applications, and are sold across the world principally to independent distributors, dealers and installers of security equipment. The Company manufactures and markets various products for alarm systems, which include automatic communicators, control panels, combination control panels/digital communicators and digital keypad systems, fire alarm control panel and area detectors. It manufactures a range of door locking devices, including microprocessor-based electronic door locks with push button, card reader and bio-metric operation, door alarms, mechanical door locks and simple dead bolt locks. It also markets peripheral and related equipment manufactured by other companies.

About Allegion PLC

Allegion Public Limited Company is a provider of security products and solutions. The Company offers a portfolio of mechanical and electronic security products across a range of brands. Its segments include Americas; Europe, Middle East, India and Africa (EMEIA), and Asia Pacific. Its products include door closers and controls; door and door frames (steel); electronic security products; electronic and biometric access control systems; exit devices; locks, locksets, portable locks and key systems; time, attendance and workforce productivity systems, and other accessories. It sells a range of security products and solutions for end users in commercial, institutional and residential facilities across the world, including into the education, healthcare, government, hospitality, commercial office and single and multi-family residential markets. As of December 31, 2016, it manufactured and sold mechanical and electronic security products and solutions in approximately 130 countries.

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