Allegion (NYSE:ALLE) versus Halma (OTCMKTS:HLMAF) Head-To-Head Review

Halma (OTCMKTS:HLMAF) and Allegion (NYSE:ALLE) are both large-cap industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, valuation, risk, profitability, earnings and analyst recommendations.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Halma	N/A	N/A	N/A
Allegion	15.83%	38.06%	14.15%

Valuation & Earnings

This table compares Halma and Allegion”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Halma	$2.87 billion	6.89	$378.18 million	N/A	N/A
Allegion	$4.07 billion	3.19	$643.80 million	$7.44	20.23

Allegion has higher revenue and earnings than Halma.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Halma	1	2	2	2	2.71
Allegion	0	7	3	0	2.30

Allegion has a consensus target price of $175.00, indicating a potential upside of 16.27%. Given Allegion’s higher probable upside, analysts plainly believe Allegion is more favorable than Halma.

Volatility and Risk

Halma has a beta of 1.41, meaning that its share price is 41% more volatile than the S&P 500. Comparatively, Allegion has a beta of 1.03, meaning that its share price is 3% more volatile than the S&P 500.

Institutional and Insider Ownership

92.2% of Allegion shares are owned by institutional investors. 0.2% of Allegion shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Summary

Allegion beats Halma on 9 of the 13 factors compared between the two stocks.

About Halma

Halma plc, together its subsidiaries, provides technology solutions in the safety, health, and environmental markets in the United States, Mainland Europe, the United Kingdom, the Asia Pacific, Africa, the Middle East, and internationally. It operates through three segments: Safety, Environmental & Analysis, and Medical. The Safety segment provides fire safety, fire detection and fire suppression; safe movement in public, commercial, and industrial spaces; elevator safety; communications in emergencies; control of access in potentially hazardous industrial and commercial environments; electrical safety; and the safe management of pipelines and storage assets solutions. This segment serves shops and restaurants, healthcare facilities, and offices and stadiums; industrial and logistics assets; public spaces and critical infrastructure; and aerospace, and rail and automotive markets. The Environmental & Analysis segment offers optical, optoelectronic, and spectral imaging systems; environmental monitoring, water and waste water analysis and treatment, gas analysis and detection, and optical analysis systems. It serves the optical analysis, water analysis and treatment, gas detection, and environmental monitoring markets. The Medical segment provides critical fluidic components used by medical diagnostics and original equipment manufacturers; components, devices and systems that provide information and analytics to understand patient health and enable providers to make decisions across the continuum of care; technologies and solutions to enable in-vitro diagnostic systems and life-science discoveries and development; and technologies that enable treatment across clinical specialties. This segment serves the life sciences, health assessment and analytics, and therapeutic solutions market. The company was incorporated in 1894 and is headquartered in Amersham, the United Kingdom.

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.