Contrasting Resideo Technologies (NYSE:REZI) and Brady (NYSE:BRC)

Resideo Technologies (NYSE:REZI) and Brady (NYSE:BRC) are both mid-cap industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, risk, earnings, dividends, valuation, profitability and analyst recommendations.

Volatility and Risk

Resideo Technologies has a beta of 1.64, indicating that its share price is 64% more volatile than the S&P 500. Comparatively, Brady has a beta of 0.62, indicating that its share price is 38% less volatile than the S&P 500.

Profitability

This table compares Resideo Technologies and Brady’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Resideo Technologies	-6.71%	16.70%	4.66%
Brady	12.93%	19.01%	13.47%

Insider & Institutional Ownership

91.7% of Resideo Technologies shares are held by institutional investors. Comparatively, 76.3% of Brady shares are held by institutional investors. 1.5% of Resideo Technologies shares are held by insiders. Comparatively, 15.6% of Brady shares are held by 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.

Analyst Recommendations

This is a summary of current ratings and recommmendations for Resideo Technologies and Brady, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Resideo Technologies	1	1	2	0	2.25
Brady	0	0	1	0	3.00

Resideo Technologies presently has a consensus target price of $49.00, suggesting a potential upside of 56.95%. Given Resideo Technologies’ higher possible upside, equities analysts clearly believe Resideo Technologies is more favorable than Brady.

Valuation and Earnings

This table compares Resideo Technologies and Brady”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Resideo Technologies	$7.47 billion	0.63	-$527.00 million	($3.84)	-8.13
Brady	$1.51 billion	2.76	$189.26 million	$4.39	20.18

Brady has lower revenue, but higher earnings than Resideo Technologies. Resideo Technologies is trading at a lower price-to-earnings ratio than Brady, indicating that it is currently the more affordable of the two stocks.

Summary

Brady beats Resideo Technologies on 9 of the 14 factors compared between the two stocks.

About Resideo Technologies

Resideo Technologies, Inc. develops, manufactures, and sells comfort, energy management, and safety and security solutions to the commercial and residential end markets in the United States, Europe, and internationally. The company operates in two segments, Products and Solutions, and ADI Global Distribution. The Products and Solutions segment provides temperature and humidity control, thermal and combustion solutions, water and indoor air quality solutions, energy products and solutions, water and air solutions, smoke and carbon monoxide detection home safety and fire suppression, security panels, sensors, peripherals, wire and cable, communications devices, video cameras, other home-related lifestyle convenience solutions, cloud infrastructure, installation and maintenance tools, and related software products under the Honeywell Home brand as well as Resideo, Braukmann, First Alert, and BRK brands. The ADI Global Distribution segment engages in the distribution of security, fire, access control, and video products; and participates in the broader related markets of smart home, power, audio, ProAV, networking, communications, data communications, wire and cable, enterprise connectivity, and structured wiring products. The company sells its products and services through a network of professional contractors, distributors, and original equipment manufacturers, as well as retail and online merchants. Resideo Technologies, Inc. was incorporated in 2018 and is headquartered in Scottsdale, Arizona.

About Brady

Brady Corporation manufactures and supplies identification solutions (IDS) and workplace safety (WPS) products to identify and protect premises, products, and people in the United States and internationally. The company offers materials, printing systems, RFID, and bar code scanners for product identification, brand protection labeling, work in process labeling, finished product identification, and industrial track and trace applications; safety signs, floor-marking tapes, pipe markers, labeling systems, spill control products, lockout/tagout device, and software and services for safety compliance auditing, procedure writing, and training; and hand-held printers, wire markers, sleeves, and tags for wire identification. It also provides name tags, badges, lanyards, rigid card printing systems, and access control software for people identification; and wristbands, labels, printing systems, and other products for tracking and improving the safety of patients. In addition, the company offers workplace safety, identification, and compliance products, such as safety and compliance signs, tags, labels, and markings; informational signage and markings; asset tracking labels; facility safety and personal protection equipment; first-aid products; and other compliance products for process, government, education, construction, and utilities industries. Further, it provides stock and custom identification products; and sells related resale products. The company serves industrial and electronic manufacturing, healthcare, chemical, oil, gas, automotive, aerospace, governments, mass transit, electrical contractors, education, leisure and entertainment, telecommunications, and other industries through distributors, direct sales force, and digital channels. Brady Corporation was incorporated in 1914 and is headquartered in Milwaukee, Wisconsin.