Critical Analysis: Allegion (NYSE:ALLE) versus Capstone Cos. (OTCMKTS:CAPC)

Allegion (NYSE:ALLE) and Capstone Cos. (OTCMKTS:CAPC) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their analyst recommendations, risk, earnings, profitability, dividends, valuation and institutional ownership.

Institutional and Insider Ownership

92.2% of Allegion shares are owned by institutional investors. 0.6% of Allegion shares are owned by company insiders. Comparatively, 40.0% of Capstone Cos. shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Allegion	15.24%	35.41%	13.53%
Capstone Cos.	N/A	-1,009.32%	-172.71%

Risk and Volatility

Allegion has a beta of 0.87, suggesting that its share price is 13% less volatile than the S&P 500. Comparatively, Capstone Cos. has a beta of 2.5, suggesting that its share price is 150% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent ratings and price targets for Allegion and Capstone Cos., as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allegion	0	9	1	1	2.27
Capstone Cos.	0	0	0	0	0.00

Allegion presently has a consensus price target of $160.38, suggesting a potential upside of 22.37%. Given Allegion’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Allegion is more favorable than Capstone Cos..

Earnings & Valuation

This table compares Allegion and Capstone Cos.”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allegion	$4.07 billion	2.77	$643.80 million	$7.32	17.90
Capstone Cos.	$140,000.00	45.67	-$920,000.00	($0.02)	-6.44

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

Summary

Allegion beats Capstone Cos. on 12 of the 15 factors compared between the two stocks.

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.

About Capstone Cos.

Capstone Companies, Inc., through its subsidiaries, operates as a designer, manufacturer, and marketer of consumer products to simplify daily living through technology. The company offers Connected Chef, a purpose-built kitchen appliance tablet with an integrated platform for cooking accessories, such as cutting board, as well as Smart Mirrors. It sells its products through sales agents, as well as directly to home-goods chain retailers. The company was formerly known as CHDT Corporation and changed its name to Capstone Companies, Inc. in June 2012. Capstone Companies, Inc. was incorporated in 1996 and is headquartered in Deerfield Beach, Florida.