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 $13.0B against $3.9B — 3.3× the size. Brady Corporation trades at the lower P/E: 19.3× against 20.2×. 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; Brady Corporation yields more (1.53% vs 1.38%). Across the 23 metrics below, Brady Corporation leads on 12 and Allegion PLC on 11.

Valuation

Metric ALLE BRC Security & Protection Services median
P/E 20.24 19.31 21.88
P/S 3.09 2.39 1.21
P/B 6.26 2.93 2.21
Price to free cash flow 19.78 20.62 20.62
EV/EBITDA 14.46 12.37 12.37
EV/Sales 3.49 2.30 1.86
Earnings yield 4.94% 5.18% 3.67%
Free cash flow yield 5.06% 4.85% 1.13%

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% 3.72%
Free cash flow margin 15.65% 11.59% 1.45%
Return on equity 33.73% 16.11% 9.87%
Return on assets 12.82% 11.45% 2.54%
Return on invested capital 14.58% 13.89% 3.11%

Growth

Metric ALLE BRC Security & Protection Services median
Revenue growth (TTM) 10.63% 9.78% 5.96%
EPS growth (last fiscal year) 9.09% 9.14% —
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% 1.53% 1.53%
Payout ratio 0.29 0.26 0.00

Size

Metric ALLE BRC Security & Protection Services median
Market cap 12.97b 3.88b 395.79m

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