Comparing NAPCO Security Technologies (NASDAQ:NSSC) and Assa Abloy (OTCMKTS:ASAZY)

NAPCO Security Technologies (NASDAQ:NSSC) and Assa Abloy (OTCMKTS:ASAZY) are both industrials companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
NAPCO Security Technologies	24.70%	27.45%	23.48%
Assa Abloy	9.74%	14.78%	6.99%

Institutional and Insider Ownership

85.1% of NAPCO Security Technologies shares are owned by institutional investors. 5.7% of NAPCO Security Technologies shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares NAPCO Security Technologies and Assa Abloy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
NAPCO Security Technologies	$192.03 million	8.48	$43.41 million	$1.33	34.34
Assa Abloy	$15.58 billion	N/A	$1.50 billion	$0.74	28.46

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

Analyst Ratings

This is a summary of recent ratings and recommmendations for NAPCO Security Technologies and Assa Abloy, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
NAPCO Security Technologies	0	2	6	0	2.75
Assa Abloy	0	4	1	0	2.20

NAPCO Security Technologies presently has a consensus price target of $47.83, indicating a potential upside of 4.73%. Given NAPCO Security Technologies’ stronger consensus rating and higher possible upside, research analysts clearly believe NAPCO Security Technologies is more favorable than Assa Abloy.

Dividends

NAPCO Security Technologies pays an annual dividend of $0.60 per share and has a dividend yield of 1.3%. Assa Abloy pays an annual dividend of $0.19 per share and has a dividend yield of 0.9%. NAPCO Security Technologies pays out 45.1% of its earnings in the form of a dividend. Assa Abloy pays out 25.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. NAPCO Security Technologies has raised its dividend for 2 consecutive years. NAPCO Security Technologies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

NAPCO Security Technologies has a beta of 1.51, meaning that its stock price is 51% more volatile than the S&P 500. Comparatively, Assa Abloy has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500.

Summary

NAPCO Security Technologies beats Assa Abloy on 13 of the 16 factors compared between the two stocks.

About NAPCO Security Technologies

Napco Security Technologies, Inc. develops, manufactures, and sells electronic security systems for commercial, residential, institutional, industrial, and governmental applications in the United States and internationally. Its access control systems include various types of identification readers, control panels, PC-based computers, and electronically activated door-locking devices; intrusion and fire alarm systems, consists of various detectors, a control panel, a digital keypad and signaling equipment; and door locking devices comprise microprocessor-based electronic door locks with push button, card readers and bio-metric operation, door alarms, mechanical door locks, and simple dead bolt locks. The company’s alarm systems include automatic communicators, cellular communication devices, control panels, combination control panels/digital communicators and digital keypad systems, fire alarm control panels, and area detectors; and video surveillance systems comprise video cameras, control panels, video monitors, or PCs. It also buys and resells various identification readers, video cameras, PC-based computers, and various peripheral equipment for access control and video surveillance systems; offers school security products; and markets peripheral and related equipment manufactured by other companies. The company markets and sells its products to independent distributors, dealers, and installers of security equipment. Napco Security Technologies, Inc. was founded in 1969 and is headquartered in Amityville, New York.

About Assa Abloy

ASSA ABLOY AB (publ) provides door opening and access products, solutions, and services for the institutional, commercial, and residential markets in Europe, the Middle East, India, Africa, North and South America, Asia, and Oceania. The company provides digital access solutions, such as electronic access control ecosystem, wireless solutions, electronic key solutions, standalone access solutions, and wired solutions; swing, revolving, and sliding doors; mechanical products, including hinges, lever handles, mortise lockcases, euro profile cylinders, panic exit devices, door closers, floor spring, and general hardware; and doors. It offers Openings Studio, a building information modeling software ecosystem is collaboration tool for designing, documenting, and managing openings. The company provides its products primarily under the ASSA ABLOY, Yale, and HID brands. It sells its products through distributors and wholesalers. The company serves aviation, education, distribution and logistics, entertainment and public facility, finance and banking, government and military, healthcare, hospitality, manufacturing, mining, office and enterprise, homes and residence, retail, shipyards, and transportation industries. ASSA ABLOY AB (publ) was incorporated in 1954 and is based in Stockholm, Sweden.