Comparing Vivint Smart Home (NYSE:VVNT) & Allegion (NYSE:ALLE)

Vivint Smart Home (NYSE:VVNTGet Rating) and Allegion (NYSE:ALLEGet Rating) are both retail/wholesale companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Profitability

This table compares Vivint Smart Home and Allegion’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Vivint Smart Home -20.77% N/A -10.69%
Allegion 16.84% 59.62% 15.42%

Institutional & Insider Ownership

79.5% of Vivint Smart Home shares are owned by institutional investors. Comparatively, 90.4% of Allegion shares are owned by institutional investors. 1.6% of Vivint Smart Home shares are owned by insiders. Comparatively, 0.5% of Allegion shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Vivint Smart Home and Allegion, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Vivint Smart Home 0 2 3 0 2.60
Allegion 0 4 5 0 2.56

Vivint Smart Home currently has a consensus target price of $16.40, indicating a potential upside of 188.73%. Allegion has a consensus target price of $143.11, indicating a potential upside of 34.12%. Given Vivint Smart Home’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Vivint Smart Home is more favorable than Allegion.

Earnings and Valuation

This table compares Vivint Smart Home and Allegion’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Vivint Smart Home $1.48 billion 0.80 -$305.55 million ($1.72) -3.30
Allegion $2.87 billion 3.28 $483.00 million $5.34 19.98

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

Risk and Volatility

Vivint Smart Home has a beta of 0.73, meaning that its share price is 27% less volatile than the S&P 500. Comparatively, Allegion has a beta of 1.13, meaning that its share price is 13% more volatile than the S&P 500.

Summary

Allegion beats Vivint Smart Home on 11 of the 14 factors compared between the two stocks.

About Vivint Smart Home (Get Rating)

Vivint Smart Home, Inc., together with its subsidiaries, engages in the sale, installation, servicing, and monitoring of smart home and security systems primarily in the United States and Canada. The company's smart home platform includes cloud-enabled smart home operating systems; AI-driven smart home automation and assistance software; software-enabled smart home devices; and tech-enabled services to educate, manage, and support the smart home. It also offers other devices, including control panel, door and window sensors, security cameras and smoke alarms, door locks, motion sensors, glass break detectors, key fobs, emergency pendants, carbon monoxide detectors, fire, flood, and burglary sensors. The company's solutions enable subscribers to interact their connected home with voice or mobile device, including front door, viewing live and recorded video inside and outside homes; and control thermostats, locks, lights, and garage doors, as well as managing movement of families, friends, and visitors. As of March 31, 2021, its smart home platform had approximately 1.9 million subscribers and managed approximately 26 million in-home devices. It markets its products through direct-to-home and inside sales channels. Vivint Smart Home, Inc. was founded in 1999 and is headquartered in Provo, Utah.

About Allegion (Get Rating)

Allegion plc manufactures and sells mechanical and electronic security products and solutions worldwide. The company offers door closers, controls, 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 and door systems; and other accessories. 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, such as specialty distribution, e-commerce, and wholesalers, as well as through various retail channels comprising do-it-yourself home improvement centers, on-line and e-commerce platforms, and small specialty showroom outlets. Allegion plc was incorporated in 2013 and is headquartered in Dublin, Ireland.

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