Financial Review: Guardian 8 (OTCMKTS:GRDH) and Allegion (ALLE)

Guardian 8 (OTCMKTS:GRDH) and Allegion (NYSE:ALLE) are both consumer discretionary companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, dividends, valuation, analyst recommendations, institutional ownership, risk and profitability.

Earnings and Valuation

This table compares Guardian 8 and Allegion’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Guardian 8 N/A N/A N/A N/A N/A
Allegion $2.41 billion 3.54 $273.30 million $3.96 22.66

Allegion has higher revenue and earnings than Guardian 8.

Insider and Institutional Ownership

0.2% of Guardian 8 shares are held by institutional investors. Comparatively, 96.5% of Allegion shares are held by institutional investors. 54.7% of Guardian 8 shares are held by insiders. Comparatively, 0.8% of Allegion shares are held 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.

Dividends

Allegion pays an annual dividend of $0.84 per share and has a dividend yield of 0.9%. Guardian 8 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.

Analyst Recommendations

This is a breakdown of current recommendations for Guardian 8 and Allegion, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Guardian 8 0 0 0 0 N/A
Allegion 0 2 4 0 2.67

Allegion has a consensus price target of $96.00, suggesting a potential upside of 6.98%. Given Allegion’s higher possible upside, analysts clearly believe Allegion is more favorable than Guardian 8.

Profitability

This table compares Guardian 8 and Allegion’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Guardian 8 N/A N/A N/A
Allegion 11.75% 85.03% 15.94%

Summary

Allegion beats Guardian 8 on 9 of the 11 factors compared between the two stocks.

About Guardian 8

Guardian 8 Holdings (G8) is engaged in the design and introduction of a category of personal security devices, enhanced non-lethal (ENL) devices. The Company’s product, the Pro V2, incorporates a layered defensive approach to help security professionals and consumers protect themselves against personal attacks, while capturing images and audio recordings to defend against personal liability. The G8 Pro V2 ENL device allows security professionals with layered defense options for de-escalation and personal protection, command center communication and incident recording. The G8 Pro V2 provides a documentable record of events that result in litigation. The G8 Pro V2 is a visible deterrent to any person who observes security officers on-duty armed with the device. The Company’s subsidiary is Guardian 8 Corporation.

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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