Contrasting Allegion (NYSE:ALLE) & Wrap Technologies (NASDAQ:WRAP)

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

Analyst Recommendations

This is a breakdown of recent recommendations for Wrap Technologies and Allegion, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Wrap Technologies	1	0	0	0	1.00
Allegion	0	7	3	0	2.30

Allegion has a consensus price target of $176.38, suggesting a potential upside of 8.13%. Given Allegion’s stronger consensus rating and higher possible upside, analysts clearly believe Allegion is more favorable than Wrap Technologies.

Valuation & Earnings

This table compares Wrap Technologies and Allegion”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Wrap Technologies	$4.13 million	29.19	-$5.88 million	($0.30)	-7.80
Allegion	$3.98 billion	3.53	$597.50 million	$7.39	22.07

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

Volatility and Risk

Wrap Technologies has a beta of 1.39, indicating that its share price is 39% more volatile than the S&P 500. Comparatively, Allegion has a beta of 1.03, indicating that its share price is 3% more volatile than the S&P 500.

Institutional & Insider Ownership

8.8% of Wrap Technologies shares are owned by institutional investors. Comparatively, 92.2% of Allegion shares are owned by institutional investors. 33.3% of Wrap Technologies shares are owned by insiders. Comparatively, 0.2% of Allegion shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Wrap Technologies	-300.11%	-194.93%	-83.58%
Allegion	16.09%	40.83%	14.55%

Summary

Allegion beats Wrap Technologies on 11 of the 14 factors compared between the two stocks.

About Wrap Technologies

Wrap Technologies, Inc., a public safety technology and services company, develops policing solutions to law enforcement and security personnel. The company's flagship product is BolaWrap 150, a handheld remote restraint device that discharges a seven and a half-foot Kevlar tether, entangling an individual from a range of 10-25 feet. It also offers virtual reality training system, a law enforcement 3D training system employing immersive computer graphics VR with proprietary software-enabled content. It operates in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was incorporated in 2007 and is based in Tempe, 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.