Reviewing Allegion (ALLE) and NXT-ID (NXTD)

Allegion (NYSE: ALLE) and NXT-ID (NASDAQ:NXTD) are both industrial products companies, but which is the better business? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, dividends and analyst recommendations.

Analyst Recommendations

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This is a summary of current recommendations for Allegion and NXT-ID, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Allegion 0 1 5 0 2.83
NXT-ID 0 0 1 0 3.00

Allegion presently has a consensus price target of $95.20, indicating a potential upside of 12.33%. NXT-ID has a consensus price target of $6.00, indicating a potential upside of 215.79%. Given NXT-ID’s stronger consensus rating and higher possible upside, analysts plainly believe NXT-ID is more favorable than Allegion.

Institutional and Insider Ownership

92.2% of Allegion shares are owned by institutional investors. Comparatively, 3.0% of NXT-ID shares are owned by institutional investors. 0.6% of Allegion shares are owned by insiders. Comparatively, 19.2% of NXT-ID shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares Allegion and NXT-ID’s revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Allegion $2.41 billion 3.35 $273.30 million $3.96 21.40
NXT-ID $23.31 million 1.98 -$8.26 million N/A N/A

Allegion has higher revenue and earnings than NXT-ID.

Profitability

This table compares Allegion and NXT-ID’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Allegion 11.35% 126.46% 15.98%
NXT-ID -35.47% -108.28% -18.58%

Dividends

Allegion pays an annual dividend of $0.84 per share and has a dividend yield of 1.0%. NXT-ID does not pay a dividend. Allegion pays out 21.2% of its earnings in the form of a dividend. Allegion has raised its dividend for 2 consecutive years.

Volatility & Risk

Allegion has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500. Comparatively, NXT-ID has a beta of -4.82, suggesting that its stock price is 582% less volatile than the S&P 500.

Summary

Allegion beats NXT-ID on 11 of the 15 factors compared between the two stocks.

About Allegion

Allegion Public Limited Company is a provider of security products and solutions. The Company offers a portfolio of mechanical and electronic security products across a range of brands. Its segments include Americas; Europe, Middle East, India and Africa (EMEIA), and Asia Pacific. Its products include door closers and controls; door and door frames (steel); electronic security products; electronic and biometric access control systems; exit devices; locks, locksets, portable locks and key systems; time, attendance and workforce productivity systems, and other accessories. It sells a range of security products and solutions for end users in commercial, institutional and residential facilities across the world, including into the education, healthcare, government, hospitality, commercial office and single and multi-family residential markets. As of December 31, 2016, it manufactured and sold mechanical and electronic security products and solutions in approximately 130 countries.

About NXT-ID

Nxt-ID, Inc., a security technology company, engages in the development of products and solutions for security, healthcare, finance, and Internet of Things (IoT) markets. It offers World Ventures SmartCard, a smartcard customized for WorldVentures, a travel company with approximately 500,000 members; and develops NXT SmartPay, a standalone solution with the ability to make payments on various devices through magnetic stripes, as well as through interaction with a terminal through EMC, near field communication (NFC), or barcode functionality. The company also provides Wi-Mag, an antenna and payment technology solution that is embedded in a mobile device to make wireless payments at various point-of sale terminals, which do not require NFC or EMV; and IoT Stamp, a connected electronics module that fits within various devices, including smartcards or watch bands. In addition, it offers monitored and non-monitored personal emergency response systems. Further, the company engages in developing MobileBio VoiceMatch, a method of recognizing speakers and specific words through multi-factor recognition; and facial recognition products, such as 3D FaceMatch and 3D SketchArtist for access control, law enforcement, and travel and immigration. It intends to serve companies, individuals, law enforcement, the defense industry, and the U.S. Department of Defense. Nxt-ID, Inc. was founded in 2011 and is based in Melbourne, Florida.

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