Allegion (NYSE:ALLE) and SU Group (NASDAQ:SUGP) Critical Survey

Allegion (NYSE:ALLE) and SU Group (NASDAQ:SUGP) are both industrial products companies, but which is the superior business? We will compare the two businesses based on the strength of their risk, valuation, profitability, analyst recommendations, earnings, institutional ownership and dividends.

Valuation and Earnings

This table compares Allegion and SU Group’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allegion	$3.65 billion	3.03	$540.40 million	$6.12	20.65
SU Group	$163.69 million	0.16	N/A	N/A	N/A

Allegion has higher revenue and earnings than SU Group.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Allegion and SU Group, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allegion	0	6	0	0	2.00
SU Group	0	0	0	0	N/A

Allegion currently has a consensus price target of $127.83, suggesting a potential upside of 1.14%. Given Allegion’s higher probable upside, research analysts clearly believe Allegion is more favorable than SU Group.

Institutional and Insider Ownership

92.2% of Allegion shares are owned by institutional investors. Comparatively, 68.1% of SU Group shares are owned by institutional investors. 0.9% of Allegion shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Allegion and SU Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Allegion	14.80%	51.95%	14.65%
SU Group	N/A	N/A	N/A

Summary

Allegion beats SU Group on 8 of the 8 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 SU Group

SU Group Holdings Limited, through its subsidiaries, operates as an integrated security-related services company in Hong Kong and internationally. The company operates through two segments, Security-Related Engineering Services Business; and Security Guarding and Screening Services Business. It primarily provides security-related engineering, security guarding and screening, and related vocational training services. The company also engages in the design, supply, installation, maintenance, and testing and commissioning of various security systems. In addition, it offers threat detection systems, including X-ray machines, trace detection products, metal detectors, and mail screening machines; traffic and pedestrian control systems, such as traffic control system, automatic fare control systems, turnstiles, automatic door system, and people counting systems; and extra-low voltage systems comprising closed-circuit television, access control, public address, and building management systems to commercial properties, public facilities, and residential properties. Further, the company provides screening services, such as the detection of explosives, and incendiary devices in air cargo consignment and detection of dangerous goods through threat detection systems by screeners; and training courses for basic security services, mandatory basic safety, and training revalidation courses. Additionally, it offers equipment leasing services. The company was founded in 1998 and is headquartered in Kwun Tong, Hong Kong. SU Group Holdings Limited operates as a subsidiary of Exceptional Engineering Limited.