Head to Head Contrast: MSA Safety Incorporporated (NYSE:MSA) & Allegion (NYSE:ALLE)

MSA Safety Incorporporated (NYSE:MSA) and Allegion (NYSE:ALLE) are both industrials companies, but which is the better stock? We will contrast the two companies based on the strength of their dividends, analyst recommendations, institutional ownership, risk, profitability, earnings and valuation.

Earnings & Valuation

This table compares MSA Safety Incorporporated and Allegion”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
MSA Safety Incorporporated	$1.87 billion	3.41	$278.92 million	$7.08	23.30
Allegion	$4.07 billion	2.99	$643.80 million	$7.44	18.97

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

Dividends

MSA Safety Incorporporated pays an annual dividend of $2.12 per share and has a dividend yield of 1.3%. Allegion pays an annual dividend of $2.20 per share and has a dividend yield of 1.6%. MSA Safety Incorporporated pays out 29.9% of its earnings in the form of a dividend. Allegion pays out 29.6% 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. MSA Safety Incorporporated has increased its dividend for 56 consecutive years and Allegion has increased its dividend for 11 consecutive years. Allegion is clearly the better dividend stock, given its higher yield and lower payout ratio.

Profitability

This table compares MSA Safety Incorporporated and Allegion’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
MSA Safety Incorporporated	14.88%	24.48%	12.61%
Allegion	15.83%	38.06%	14.15%

Analyst Ratings

This is a breakdown of recent recommendations for MSA Safety Incorporporated and Allegion, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
MSA Safety Incorporporated	0	4	3	0	2.43
Allegion	0	7	3	0	2.30

MSA Safety Incorporporated currently has a consensus price target of $203.14, suggesting a potential upside of 23.17%. Allegion has a consensus price target of $171.13, suggesting a potential upside of 21.22%. Given MSA Safety Incorporporated’s stronger consensus rating and higher possible upside, equities research analysts plainly believe MSA Safety Incorporporated is more favorable than Allegion.

Insider and Institutional Ownership

92.5% of MSA Safety Incorporporated shares are held by institutional investors. Comparatively, 92.2% of Allegion shares are held by institutional investors. 0.7% of MSA Safety Incorporporated shares are held by insiders. Comparatively, 0.2% of Allegion shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

MSA Safety Incorporporated has a beta of 1.05, meaning that its share price is 5% more volatile than the S&P 500. Comparatively, Allegion has a beta of 1.02, meaning that its share price is 2% more volatile than the S&P 500.

About MSA Safety Incorporporated

MSA Safety Incorporated develops, manufactures, and supplies safety products and technology solutions that protect people and facility infrastructures in the fire service, energy, utility, construction, and industrial manufacturing applications, as well as heating, ventilation, air conditioning, and refrigeration industries worldwide. The company's core product offerings include fixed gas and flame detection systems, such as gas detection monitoring systems, and flame detectors and open-path infrared gas detectors; breathing apparatus products, including self-contained breathing apparatus; hand-held portable gas detection instruments to detect the presence or absence of various gases in the air; industrial head protection products; firefighter helmets and protective apparel; and fall protection equipment, such as confined space equipment, harnesses, lanyards, and self-retracting lifelines, as well as engineered systems. In addition, the company offers air-purifying respirators, eye and face protection products, ballistic helmets, and gas masks. It serves distributors and end-users through indirect and direct sales channels. The company offers its products under the V-Gard, Cairns, and Gallet brand names. MSA Safety Incorporated was founded in 1914 and is based in Cranberry Township, Pennsylvania.

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.