Financial Survey: Costar Technologies (CSTI) & Allegion (ALLE)

Costar Technologies (OTCMKTS:CSTI) and Allegion (NYSE:ALLE) are both consumer discretionary companies, but which is the better investment? We will contrast the two businesses based on the strength of their profitability, earnings, valuation, risk, institutional ownership, dividends and analyst recommendations.

Insider and Institutional Ownership

14.5% of Costar Technologies shares are owned by institutional investors. Comparatively, 93.4% of Allegion shares are owned by institutional investors. 4.9% of Costar Technologies shares are owned by insiders. Comparatively, 0.8% of Allegion shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a summary of recent ratings for Costar Technologies and Allegion, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Costar Technologies 0 0 0 0 N/A
Allegion 0 2 4 0 2.67

Allegion has a consensus target price of $96.00, suggesting a potential upside of 6.88%. Given Allegion’s higher probable upside, analysts clearly believe Allegion is more favorable than Costar Technologies.

Earnings & Valuation

This table compares Costar Technologies and Allegion’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Costar Technologies $38.56 million 0.42 $630,000.00 N/A N/A
Allegion $2.41 billion 3.55 $273.30 million $3.96 22.68

Allegion has higher revenue and earnings than Costar Technologies.

Dividends

Allegion pays an annual dividend of $0.84 per share and has a dividend yield of 0.9%. Costar Technologies does not pay a dividend. Allegion pays out 21.2% of its earnings in the form of a dividend. Allegion has raised its dividend for 2 consecutive years.

Profitability

This table compares Costar Technologies and Allegion’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Costar Technologies N/A N/A N/A
Allegion 11.75% 85.03% 15.94%

Risk and Volatility

Costar Technologies has a beta of 0.38, suggesting that its stock price is 62% less volatile than the S&P 500. Comparatively, Allegion has a beta of 1.05, suggesting that its stock price is 5% more volatile than the S&P 500.

Summary

Allegion beats Costar Technologies on 12 of the 14 factors compared between the two stocks.

About Costar Technologies

Costar Technologies, Inc., together with its subsidiaries, designs, develops, manufactures, and distributes a range of security solution products for the video surveillance and machine vision markets in the United States. The company operates through three segments: Costar Video Systems, CohuHD Costar, and Other. Its products include video management software, surveillance cameras, network video recorders, and digital video recorders; monitors, lenses, cables, lighting products, and other video and electronic accessories; and camera mounts and data storage devices. The company provides its solutions for financial institutions, educational facilities, retail stores, manufacturing plants, highways, government buildings, military bases, borders, and other applications. The company was formerly known as Sielox, Inc. and changed its name to Costar Technologies, Inc. in October 2011. Costar Technologies, Inc. was founded in 1997 and is based in Coppell, Texas.

About Allegion

Allegion plc manufactures and sells mechanical and electronic security products and solutions worldwide. The company offers locks, locksets, portable locks, and key systems; door closers and exit devices; electronic security products and access control systems; time, attendance, and workforce productivity systems; doors and door frames; and other accessories. It also door and window products for commercial spaces, including sealing systems, such as sound control, fire and smoke protection, and threshold applications, as well as lights, door louvers, intumescent products, photo-luminescent products, and flood barriers for doors; and designs and manufactures sliding and folding door hardware for commercial and residential spaces. The company sells its products and solutions to end-users in commercial, institutional, and residential facilities, including education, healthcare, government, hospitality, 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 ranging from specialty distribution to wholesalers, as well as through various retail channels ranging from do-it-yourself home improvement centers to small specialty showroom outlets. Allegion plc was incorporated in 2013 and is headquartered in Dublin, Ireland.

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