Financial Comparison: Allegion (NYSE:ALLE) versus Modine Manufacturing (NYSE:MOD)

Modine Manufacturing (NYSE:MOD) and Allegion (NYSE:ALLE) are both large-cap industrials companies, but which is the superior business? We will contrast the two businesses based on the strength of their earnings, risk, valuation, dividends, institutional ownership, profitability and analyst recommendations.

Institutional & Insider Ownership

95.2% of Modine Manufacturing shares are owned by institutional investors. Comparatively, 92.2% of Allegion shares are owned by institutional investors. 1.9% of Modine Manufacturing shares are owned by insiders. Comparatively, 0.6% of Allegion shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings and target prices for Modine Manufacturing and Allegion, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Modine Manufacturing	0	2	7	0	2.78
Allegion	0	7	2	0	2.22

Modine Manufacturing presently has a consensus price target of $320.14, indicating a potential upside of 62.97%. Allegion has a consensus price target of $162.50, indicating a potential upside of 5.56%. Given Modine Manufacturing’s stronger consensus rating and higher probable upside, equities analysts plainly believe Modine Manufacturing is more favorable than Allegion.

Valuation & Earnings

This table compares Modine Manufacturing and Allegion”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Modine Manufacturing	$3.18 billion	3.28	$121.50 million	$2.66	73.85
Allegion	$4.07 billion	3.22	$643.80 million	$7.62	20.20

Allegion has higher revenue and earnings than Modine Manufacturing. Allegion is trading at a lower price-to-earnings ratio than Modine Manufacturing, indicating that it is currently the more affordable of the two stocks.

Risk & Volatility

Modine Manufacturing has a beta of 1.74, indicating that its share price is 74% more volatile than the S&P 500. Comparatively, Allegion has a beta of 0.83, indicating that its share price is 17% less volatile than the S&P 500.

Profitability

This table compares Modine Manufacturing and Allegion’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Modine Manufacturing	4.28%	25.59%	11.39%
Allegion	15.36%	35.41%	13.80%

Summary

Modine Manufacturing beats Allegion on 8 of the 14 factors compared between the two stocks.

About Modine Manufacturing

Modine Manufacturing Company provides thermal management products and solutions in the United States, Italy, Hungary, China, the United Kingdom, and internationally. It operates through Climate Solutions and Performance Technologies segments. The company offers heat transfer coils, including heat recovery and round tube plate fin coils; gas-fired, hydronic, electric and oilfired unit heaters; roof-mounted direct- and indirect-fired makeup air units; duct furnaces; infrared units; perimeter heating products; single packaged unit ventilators; modular chillers; air handler and condensing units; ceiling cassettes; evaporator unit coolers, remote condensers, fluid coolers, gas coolers, and dry and brine coolers; and motor and generator cooling coils, transformer oil coolers, radiators, dryers, and industrial heat exchangers. It also provides data center products consisting of IT cooling solutions, including precision air conditioning units for data center applications; computer room air conditioning and handler units; hybrid fan coils; fan walls; chillers; condensers; condensing units; and liquid cooling solutions for high-density computing, as well as replacement parts, maintenance service and control solutions for existing equipment and new building management controls and systems. In addition, the company offers powertrain cooling products, such as radiators, condensers, engine cooling modules, charge air coolers, fan shrouds, and surge tanks; cooling module generator sets; aluminum and stainless steel engine oil coolers, exhaust gas recirculation coolers, liquid charge air coolers, transmission and retarder oil coolers, and chillers; battery thermal management systems, electronics cooling packages, battery chillers, battery cooling plates, coolers and casings for electronics cooling, and coolers for electric axles; and coatings products and application services. Modine Manufacturing Company was incorporated in 1916 and is headquartered in Racine, Wisconsin.

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.