Allegion (NYSE:ALLE – Get Free Report) and UFP Industries (NASDAQ:UFPI – Get Free Report) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.
Risk & Volatility
Allegion has a beta of 0.82, meaning that its stock price is 18% less volatile than the S&P 500. Comparatively, UFP Industries has a beta of 1.14, meaning that its stock price is 14% more volatile than the S&P 500.
Earnings & Valuation
This table compares Allegion and UFP Industries”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Allegion | $4.07 billion | 3.93 | $643.80 million | $8.03 | 23.60 |
| UFP Industries | $6.32 billion | 0.71 | $294.79 million | $4.12 | 19.61 |
Allegion has higher earnings, but lower revenue than UFP Industries. UFP Industries 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 Allegion and UFP Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Allegion | 15.74% | 35.52% | 14.06% |
| UFP Industries | 3.61% | 7.53% | 5.68% |
Dividends
Allegion pays an annual dividend of $2.20 per share and has a dividend yield of 1.2%. UFP Industries pays an annual dividend of $1.44 per share and has a dividend yield of 1.8%. Allegion pays out 27.4% of its earnings in the form of a dividend. UFP Industries pays out 35.0% 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. Allegion has raised its dividend for 11 consecutive years and UFP Industries has raised its dividend for 5 consecutive years.
Institutional & Insider Ownership
92.2% of Allegion shares are owned by institutional investors. Comparatively, 81.8% of UFP Industries shares are owned by institutional investors. 0.6% of Allegion shares are owned by company insiders. Comparatively, 2.5% of UFP Industries shares are owned by company 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.
Analyst Ratings
This is a summary of current ratings and target prices for Allegion and UFP Industries, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Allegion | 0 | 4 | 5 | 0 | 2.56 |
| UFP Industries | 2 | 2 | 3 | 0 | 2.14 |
Allegion presently has a consensus target price of $180.70, suggesting a potential downside of 4.67%. UFP Industries has a consensus target price of $103.25, suggesting a potential upside of 27.80%. Given UFP Industries’ higher possible upside, analysts plainly believe UFP Industries is more favorable than Allegion.
Summary
Allegion beats UFP Industries on 12 of the 17 factors compared between the two stocks.
About Allegion
Allegion plc is a global provider of security products and solutions for homes, businesses, schools, hospitals and other institutions. Its offerings include mechanical and electronic locks, access-control systems, door closers, exit devices and related door hardware. The company sells products under brands including Schlage, Von Duprin, LCN and CISA. Its solutions are used in both commercial and residential settings, with operations serving customers in North America and other markets around the world.
About UFP Industries
UFP Industries, Inc. is a manufacturer and distributor of wood and other materials used in construction, packaging and retail products. Founded in 1955 as Universal Forest Products, the company adopted its current name in 2020. Its businesses supply products such as lumber, decking and other outdoor-living materials; pallets, crates and custom industrial packaging; and components for residential and commercial construction. UFP also serves customers in manufactured housing and other building-related markets.
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