Allegion (NYSE:ALLE) versus Rectitude (NASDAQ:RECT) Financial Analysis

Rectitude (NASDAQ:RECT) and Allegion (NYSE:ALLE) are both industrials companies, but which is the superior stock? We will compare the two companies based on the strength of their valuation, profitability, dividends, analyst recommendations, institutional ownership, earnings and risk.

Analyst Ratings

This is a summary of current ratings for Rectitude and Allegion, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Rectitude	1	0	0	0	1.00
Allegion	0	8	2	1	2.36

Allegion has a consensus price target of $164.75, indicating a potential upside of 2.32%. Given Allegion’s stronger consensus rating and higher probable upside, analysts plainly believe Allegion is more favorable than Rectitude.

Insider & Institutional Ownership

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

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Rectitude	$32.57 million	0.52	$1.66 million	N/A	N/A
Allegion	$4.29 billion	3.23	$643.80 million	$7.62	21.13

Allegion has higher revenue and earnings than Rectitude.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Rectitude	N/A	N/A	N/A
Allegion	15.36%	35.41%	13.80%

Risk and Volatility

Rectitude has a beta of 1.01, meaning that its share price is 1% more volatile than the S&P 500. Comparatively, Allegion has a beta of 0.85, meaning that its share price is 15% less volatile than the S&P 500.

Summary

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

About Rectitude

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

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.