Contrasting Allegion (NYSE:ALLE) & Rectitude (NASDAQ:RECT)

by · The Markets Daily

Rectitude (NASDAQ:RECTGet Free Report) and Allegion (NYSE:ALLEGet Free Report) are both industrials companies, but which is the better stock? We will contrast the two businesses based on the strength of their valuation, analyst recommendations, earnings, dividends, profitability, risk and institutional ownership.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Rectitude and Allegion, as provided by MarketBeat.com.

Sell RatingsHold RatingsBuy RatingsStrong Buy RatingsRating Score
Rectitude10001.00
Allegion08212.36

Allegion has a consensus target price of $164.75, suggesting a potential upside of 1.91%. Given Allegion’s stronger consensus rating and higher possible upside, analysts clearly believe Allegion is more favorable than Rectitude.

Insider & Institutional Ownership

92.2% of Allegion shares are owned by institutional investors. 0.6% of Allegion shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

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

Net MarginsReturn on EquityReturn on Assets
RectitudeN/AN/AN/A
Allegion15.36%35.41%13.80%

Earnings & Valuation

This table compares Rectitude and Allegion”s gross revenue, earnings per share (EPS) and valuation.

Gross RevenuePrice/Sales RatioNet IncomeEarnings Per SharePrice/Earnings Ratio
Rectitude$39.74 million0.49$2.78 millionN/AN/A
Allegion$4.07 billion3.38$643.80 million$7.6221.22

Allegion has higher revenue and earnings than Rectitude.

Volatility and Risk

Rectitude has a beta of 1.01, indicating that its share price is 1% more volatile than the S&P 500. Comparatively, Allegion has a beta of 0.84, indicating that its share price is 16% less volatile than the S&P 500.

Summary

Allegion beats Rectitude on 12 of the 13 factors compared between the two stocks.

About Rectitude

(Get Free Report)

Rectitude Holdings Ltd is principally involved in the provision of safety equipment, encompassing essential items such as personal protective clothing, gloves, safety footwear, personal fall arrest systems, portable fire extinguishers and traffic products. The Company also offers auxiliary products such as industrial hardware tools and electrical hardware required for construction sites. Rectitude Holdings Ltd is based in SINGAPORE.

About Allegion

(Get Free Report)

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.