Comparing Brady (NYSE:BRC) & Assa Abloy (OTCMKTS:ASAZY)

Brady (NYSE:BRC) and Assa Abloy (OTCMKTS:ASAZY) are both industrials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their dividends, valuation, risk, profitability, analyst recommendations, earnings and institutional ownership.

Earnings & Valuation

This table compares Brady and Assa Abloy”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Brady	$1.51 billion	2.45	$189.26 million	$4.27	18.38
Assa Abloy	$15.58 billion	2.76	$1.50 billion	$0.76	25.38

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

Dividends

Brady pays an annual dividend of $0.98 per share and has a dividend yield of 1.2%. Assa Abloy pays an annual dividend of $0.17 per share and has a dividend yield of 0.9%. Brady pays out 23.0% of its earnings in the form of a dividend. Assa Abloy pays out 22.4% 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. Brady has increased its dividend for 39 consecutive years. Brady is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider and Institutional Ownership

76.3% of Brady shares are owned by institutional investors. 15.6% of Brady shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.

Profitability

This table compares Brady and Assa Abloy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Brady	13.01%	18.62%	12.99%
Assa Abloy	10.51%	15.93%	7.58%

Analyst Recommendations

This is a summary of recent recommendations for Brady and Assa Abloy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Brady	0	0	1	1	3.50
Assa Abloy	0	3	2	2	2.86

Risk and Volatility

Brady has a beta of 0.61, meaning that its share price is 39% less volatile than the S&P 500. Comparatively, Assa Abloy has a beta of 1.2, meaning that its share price is 20% more volatile than the S&P 500.

Summary

Brady beats Assa Abloy on 9 of the 17 factors compared between the two stocks.

About Brady

Brady Corporation manufactures and supplies identification solutions (IDS) and workplace safety (WPS) products to identify and protect premises, products, and people in the United States and internationally. The company offers materials, printing systems, RFID, and bar code scanners for product identification, brand protection labeling, work in process labeling, finished product identification, and industrial track and trace applications; safety signs, floor-marking tapes, pipe markers, labeling systems, spill control products, lockout/tagout device, and software and services for safety compliance auditing, procedure writing, and training; and hand-held printers, wire markers, sleeves, and tags for wire identification. It also provides name tags, badges, lanyards, rigid card printing systems, and access control software for people identification; and wristbands, labels, printing systems, and other products for tracking and improving the safety of patients. In addition, the company offers workplace safety, identification, and compliance products, such as safety and compliance signs, tags, labels, and markings; informational signage and markings; asset tracking labels; facility safety and personal protection equipment; first-aid products; and other compliance products for process, government, education, construction, and utilities industries. Further, it provides stock and custom identification products; and sells related resale products. The company serves industrial and electronic manufacturing, healthcare, chemical, oil, gas, automotive, aerospace, governments, mass transit, electrical contractors, education, leisure and entertainment, telecommunications, and other industries through distributors, direct sales force, and digital channels. Brady Corporation was incorporated in 1914 and is headquartered in Milwaukee, Wisconsin.

About Assa Abloy

ASSA ABLOY AB (publ) provides door opening and access products, solutions, and services for the institutional, commercial, and residential markets in Europe, the Middle East, India, Africa, North and South America, Asia, and Oceania. The company provides digital access solutions, such as electronic access control ecosystem, wireless solutions, electronic key solutions, standalone access solutions, and wired solutions; swing, revolving, and sliding doors; mechanical products, including hinges, lever handles, mortise lockcases, euro profile cylinders, panic exit devices, door closers, floor spring, and general hardware; and doors. It offers Openings Studio, a building information modeling software ecosystem is collaboration tool for designing, documenting, and managing openings. The company provides its products primarily under the ASSA ABLOY, Yale, and HID brands. It sells its products through distributors and wholesalers. The company serves aviation, education, distribution and logistics, entertainment and public facility, finance and banking, government and military, healthcare, hospitality, manufacturing, mining, office and enterprise, homes and residence, retail, shipyards, and transportation industries. ASSA ABLOY AB (publ) was incorporated in 1954 and is based in Stockholm, Sweden.