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 institutional ownership, dividends, analyst recommendations, valuation, risk, earnings and profitability.
Institutional and Insider Ownership
25.1% of NAPCO Security Technologies shares are owned by institutional investors. Comparatively, 93.6% of Allegion PLC shares are owned by institutional investors. 37.8% of NAPCO Security Technologies shares are owned by company insiders. Comparatively, 0.6% of Allegion PLC shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Valuation & Earnings
This table compares NAPCO Security Technologies and Allegion PLC’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|NAPCO Security Technologies||$85.75 million||1.70||$8.06 million||$0.31||25.00|
|Allegion PLC||$2.33 billion||3.19||$503.40 million||$2.60||30.07|
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.
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.
Volatility and Risk
NAPCO Security Technologies has a beta of 0.52, meaning that its share price is 48% less volatile than the S&P 500. Comparatively, Allegion PLC has a beta of 1.1, meaning that its share price is 10% more volatile than the S&P 500.
This is a summary of current ratings and recommmendations for NAPCO Security Technologies and Allegion PLC, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|NAPCO Security Technologies||0||1||2||0||2.67|
NAPCO Security Technologies presently has a consensus target price of $8.75, indicating a potential upside of 12.90%. Allegion PLC has a consensus target price of $84.75, indicating a potential upside of 8.42%. Given NAPCO Security Technologies’ higher possible upside, equities research analysts clearly believe NAPCO Security Technologies is more favorable than Allegion PLC.
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 beats NAPCO Security Technologies on 11 of the 15 factors compared between the two stocks.
NAPCO Security Technologies Company Profile
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.
Allegion PLC Company Profile
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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