CSW Industrials (NYSE:CSW) versus Allegion (NYSE:ALLE) Head to Head Survey

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

Dividends

CSW Industrials pays an annual dividend of $1.20 per share and has a dividend yield of 0.4%. Allegion pays an annual dividend of $2.20 per share and has a dividend yield of 1.4%. CSW Industrials pays out 16.5% of its earnings in the form of a dividend. Allegion pays out 28.9% 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. CSW Industrials has raised its dividend for 6 consecutive years and Allegion has raised its dividend for 11 consecutive years. Allegion is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Risk and Volatility

CSW Industrials has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500. Comparatively, Allegion has a beta of 0.81, suggesting that its stock price is 19% less volatile than the S&P 500.

Earnings and Valuation

This table compares CSW Industrials and Allegion”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
CSW Industrials	$1.08 billion	4.56	$112.04 million	$7.29	41.54
Allegion	$4.07 billion	3.21	$643.80 million	$7.62	20.18

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
CSW Industrials	10.34%	17.41%	8.90%
Allegion	15.36%	35.41%	13.80%

Institutional and Insider Ownership

82.8% of CSW Industrials shares are held by institutional investors. Comparatively, 92.2% of Allegion shares are held by institutional investors. 1.2% of CSW Industrials shares are held by insiders. Comparatively, 0.6% of Allegion shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current ratings and price targets for CSW Industrials and Allegion, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
CSW Industrials	0	6	1	2	2.56
Allegion	0	7	2	0	2.22

CSW Industrials presently has a consensus target price of $347.57, indicating a potential upside of 14.77%. Allegion has a consensus target price of $162.50, indicating a potential upside of 5.69%. Given CSW Industrials’ stronger consensus rating and higher probable upside, analysts plainly believe CSW Industrials is more favorable than Allegion.

Summary

Allegion beats CSW Industrials on 10 of the 17 factors compared between the two stocks.

About CSW Industrials

CSW Industrials, Inc. operates as a diversified industrial company in the United States and internationally. It operates through three segments: Contractor Solutions, Engineered Building Solutions, and Specialized Reliability Solutions. The Contractor Solutions segment provides condensate pads, pans, pumps, switches, and traps; cements, diffusers, grilles, registers, solvents, thread sealants, and vents; line set covers; refrigerant caps; wire pulling head tools; electrical protection, chemical maintenance, and installation supplies for HVAC; ductless mini-split systems installation support tools and accessories; and drain waste and vent system products for use in HVAC/R, plumbing, general industrial, architecturally specified building products. The Engineered Building Solutions segment offers architectural railings and associated services; fire and smoke protection solutions; and pre-engineered and custom architectural building components for use in architecturally specified building products. The Specialized Reliability Solutions segment provides compounds, lubricants, lubricant management products, and sealants; desiccant breather filtration products; and contamination control, industrial maintenance and repair, rail friction modifiers, sealants, and operations solutions for use in energy, general industrial, mining, and rail transportation. The company was incorporated in 2014 and is headquartered in Dallas, Texas.

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.