Allegion (NYSE:ALLE) vs. Carlisle Companies (NYSE:CSL) Head to Head Review

Carlisle Companies (NYSE:CSL) and Allegion (NYSE:ALLE) are both large-cap industrials companies, but which is the better investment? We will contrast the two companies based on the strength of their profitability, institutional ownership, analyst recommendations, risk, valuation, earnings and dividends.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Carlisle Companies and Allegion, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Carlisle Companies	0	6	4	0	2.40
Allegion	0	6	3	0	2.33

Carlisle Companies presently has a consensus target price of $394.50, indicating a potential upside of 17.62%. Allegion has a consensus target price of $162.50, indicating a potential upside of 4.49%. Given Carlisle Companies’ stronger consensus rating and higher probable upside, analysts clearly believe Carlisle Companies is more favorable than Allegion.

Risk and Volatility

Carlisle Companies has a beta of 0.84, suggesting that its stock price is 16% 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.

Institutional & Insider Ownership

89.5% of Carlisle Companies shares are held by institutional investors. Comparatively, 92.2% of Allegion shares are held by institutional investors. 1.3% of Carlisle Companies shares are held by company insiders. Comparatively, 0.6% of Allegion shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Dividends

Carlisle Companies pays an annual dividend of $5.00 per share and has a dividend yield of 1.5%. Allegion pays an annual dividend of $2.20 per share and has a dividend yield of 1.4%. Carlisle Companies pays out 28.7% 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. Carlisle Companies has raised its dividend for 48 consecutive years and Allegion has raised its dividend for 11 consecutive years. Carlisle Companies is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings and Valuation

This table compares Carlisle Companies and Allegion”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Carlisle Companies	$5.02 billion	2.65	$740.70 million	$17.43	19.24
Allegion	$4.07 billion	3.25	$643.80 million	$7.62	20.41

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Carlisle Companies	14.21%	47.58%	13.46%
Allegion	15.36%	35.41%	13.80%

Summary

Carlisle Companies beats Allegion on 13 of the 17 factors compared between the two stocks.

About Carlisle Companies

Carlisle Companies Incorporated operates as a manufacturer and supplier of building envelope products and solutions in the United States, Europe, North America, Asia and the Middle East, Africa, and internationally. It operates through two segments: Carlisle Construction Materials and Carlisle Weatherproofing Technologies. The company produces single-ply roofing products, and warranted roof systems and accessories, including ethylene propylene diene monomer, thermoplastic polyolefin and polyvinyl chloride membrane, polyiso insulation, and engineered metal roofing and wall panel systems for commercial and residential buildings. It also offers building envelope solutions, including high-performance waterproofing and moisture protection products, protective roofing underlayments, fully integrated liquid and sheet applied air/vapor barriers, sealants/primers and flashing systems, roof coatings and mastics, spray polyurethane foam and coating systems, block-molded expanded polystyrene insulation, and engineered products for HVAC applications. It sells its products under the Carlisle SynTec, Versico, WeatherBond, Hunter Panels, Resitrix, and Hertalan brands. Carlisle Companies Incorporated was founded in 1917 and is headquartered in Scottsdale, Arizona.

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.