Allegion PLC (ALLE) vs Brady Corporation (BRC)

Allegion PLC and Brady Corporation are both Security & Protection Services companies. Allegion PLC is the larger, with a market value of $13.2B against $3.9B — 3.4× the size. Brady Corporation trades at the lower P/E: 18.8× against 20.5×. Allegion PLC grew revenue faster over the last twelve months: 10.6% against 9.78%. Allegion PLC has the higher net margin (15.4% vs 12.4%) and the higher return on invested capital (14.6% vs 13.9%). Both pay a dividend; Allegion PLC yields more (1.38% vs 1.20%). Across the 23 metrics below, Allegion PLC leads on 12 and Brady Corporation on 11.

Valuation

Metric ALLE BRC Security & Protection Services median
P/E 20.46 18.83 22.21
P/S 3.13 2.33 1.12
P/B 6.33 2.85 2.11
Price to free cash flow 19.99 20.11 20.05
EV/EBITDA 14.60 12.16 11.50
EV/Sales 3.53 2.26 2.08
Earnings yield 4.89% 5.31% 2.19%
Free cash flow yield 5.00% 4.97% 2.44%

Profitability

Metric ALLE BRC Security & Protection Services median
Gross margin 44.80% 51.75% 41.45%
Operating margin 20.83% 15.86% 8.06%
Net margin 15.36% 12.36% 3.11%
Free cash flow margin 15.65% 11.59% 1.45%
Return on equity 33.73% 16.11% 5.40%
Return on assets 12.82% 11.45% 1.07%
Return on invested capital 14.58% 13.89% 2.40%

Growth

Metric ALLE BRC Security & Protection Services median
Revenue growth (TTM) 10.63% 9.78% 6.22%
EPS growth (last fiscal year) 9.09% 9.14% 29.52%
Revenue growth, 5-year CAGR 8.38% 7.74% 7.35%
Net income growth, 5-year CAGR 15.42% 9.64% 0.00%

Health

Metric ALLE BRC Security & Protection Services median
Debt to equity 0.96 0.01 0.20
Current ratio 1.93 1.94 1.93
Net debt to EBITDA 1.64 (0.56) 1.55

Dividend

Metric ALLE BRC Security & Protection Services median
Dividend yield 1.38% 1.20% 1.72%
Payout ratio 0.28 0.23 0.28

Size

Metric ALLE BRC Security & Protection Services median
Market cap 13.24b 3.94b 394.99m

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