Critical Comparison: Assa Abloy (OTCMKTS:ASAZY) and Resideo Technologies (NYSE:REZI)

Assa Abloy (OTCMKTS:ASAZY) and Resideo Technologies (NYSE:REZI) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, earnings, dividends, profitability, valuation, risk and analyst recommendations.

Volatility & Risk

Assa Abloy has a beta of 1.22, meaning that its share price is 22% more volatile than the S&P 500. Comparatively, Resideo Technologies has a beta of 1.7, meaning that its share price is 70% more volatile than the S&P 500.

Valuation & Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Assa Abloy	$15.58 billion	2.79	$1.50 billion	$0.74	26.40
Resideo Technologies	$7.47 billion	0.74	-$527.00 million	($4.03)	-9.12

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

Institutional and Insider Ownership

91.7% of Resideo Technologies shares are held by institutional investors. 1.5% of Resideo Technologies 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.

Profitability

This table compares Assa Abloy and Resideo Technologies’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Assa Abloy	9.74%	14.78%	6.99%
Resideo Technologies	-7.27%	15.15%	4.43%

Analyst Ratings

This is a summary of recent ratings and price targets for Assa Abloy and Resideo Technologies, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Assa Abloy	0	3	1	2	2.83
Resideo Technologies	1	2	2	0	2.20

Resideo Technologies has a consensus target price of $39.67, indicating a potential upside of 7.92%. Given Resideo Technologies’ higher probable upside, analysts clearly believe Resideo Technologies is more favorable than Assa Abloy.

Summary

Assa Abloy beats Resideo Technologies on 9 of the 15 factors compared between the two stocks.

About Assa Abloy

ASSA ABLOY AB (publ) provides door opening and access products, solutions, and services for the institutional, commercial, and residential markets in Europe, the Middle East, India, Africa, North and South America, Asia, and Oceania. The company provides digital access solutions, such as electronic access control ecosystem, wireless solutions, electronic key solutions, standalone access solutions, and wired solutions; swing, revolving, and sliding doors; mechanical products, including hinges, lever handles, mortise lockcases, euro profile cylinders, panic exit devices, door closers, floor spring, and general hardware; and doors. It offers Openings Studio, a building information modeling software ecosystem is collaboration tool for designing, documenting, and managing openings. The company provides its products primarily under the ASSA ABLOY, Yale, and HID brands. It sells its products through distributors and wholesalers. The company serves aviation, education, distribution and logistics, entertainment and public facility, finance and banking, government and military, healthcare, hospitality, manufacturing, mining, office and enterprise, homes and residence, retail, shipyards, and transportation industries. ASSA ABLOY AB (publ) was incorporated in 1954 and is based in Stockholm, Sweden.

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.