Comparing Allegion (NYSE:ALLE) & Securitas AB (publ) (OTCMKTS:SCTBF)

Allegion (NYSE:ALLE) and Securitas AB (publ) (OTCMKTS:SCTBF) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their institutional ownership, valuation, risk, analyst recommendations, earnings, dividends and profitability.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Allegion and Securitas AB (publ), as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allegion	0	5	1	0	2.17
Securitas AB (publ)	0	0	0	0	N/A

Allegion presently has a consensus target price of $125.67, indicating a potential downside of 6.17%. Given Allegion’s higher possible upside, equities research analysts plainly believe Allegion is more favorable than Securitas AB (publ).

Earnings and Valuation

This table compares Allegion and Securitas AB (publ)’s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allegion	$3.65 billion	3.21	$540.40 million	$6.12	21.88
Securitas AB (publ)	N/A	N/A	N/A	N/A	N/A

Allegion has higher revenue and earnings than Securitas AB (publ).

Institutional & Insider Ownership

92.2% of Allegion shares are owned by institutional investors. Comparatively, 35.4% of Securitas AB (publ) shares are owned by institutional investors. 0.9% of Allegion shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

This table compares Allegion and Securitas AB (publ)’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%
Securitas AB (publ)	N/A	N/A	N/A

Summary

Allegion beats Securitas AB (publ) 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 Securitas AB (publ)

Securitas AB (publ) provides security services in North America, Europe, Latin America, Africa, the Middle East, Asia, and Australia. The company operates through three segments: Securitas North America, Securitas Europe, and Securitas Ibero-America. It offers on-site guarding, mobile patrol, canine security, reception, loss prevention, screening, and track and trace services, as well as operates Securitas operation centers. The company also provides remote video solutions; aviation security services, such as physical security, airline security, hospitality, and consultancy related services; and electronic security services. In addition, it offers fire and safety; enterprise risk management services, such as risk and security management, executive protection, corporate investigations, and due diligence services; and intelligent security and home alarm services. The company was founded in 1934 and is headquartered in Stockholm, Sweden.