Comparing Allegion (ALLE) and Its Rivals

Allegion (NYSE:ALLE) is one of 93 publicly-traded companies in the “Building Products” industry, but how does it compare to its rivals? We will compare Allegion to similar companies based on the strength of its institutional ownership, profitability, earnings, analyst recommendations, risk, dividends and valuation.

Profitability

This table compares Allegion and its rivals’ 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	3.66%	-30.09%	5.11%

Insider and Institutional Ownership

92.2% of Allegion shares are held by institutional investors. Comparatively, 63.6% of shares of all “Building Products” companies are held by institutional investors. 0.6% of Allegion shares are held by company insiders. Comparatively, 10.2% of shares of all “Building Products” companies 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 pays an annual dividend of $2.20 per share and has a dividend yield of 1.1%. 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 6.9% and pay out 37.7% of their earnings in the form of a dividend. Allegion has raised its dividend for 11 consecutive years.

Risk & Volatility

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

Valuation and Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Allegion	$4.07 billion	$643.80 million	24.05
Allegion Competitors	$4.00 billion	$4.65 billion	37.79

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

Analyst Recommendations

This is a summary of recent ratings for Allegion and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allegion	0	4	5	0	2.56
Allegion Competitors	736	3924	5051	238	2.48

Allegion presently has a consensus target price of $180.70, suggesting a potential downside of 6.44%. As a group, “Building Products” companies have a potential upside of 26.62%. Given Allegion’s rivals higher probable upside, analysts plainly believe Allegion has less favorable growth aspects than its rivals.

Summary

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

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.