SoundThinking (NASDAQ:SSTI – Get Free Report) and Allegion (NYSE:ALLE – Get Free Report) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their earnings, risk, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Profitability
This table compares SoundThinking and Allegion’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| SoundThinking | -9.74% | -13.76% | -7.36% |
| Allegion | 16.15% | 42.62% | 14.55% |
Earnings & Valuation
This table compares SoundThinking and Allegion”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| SoundThinking | $102.03 million | 1.57 | -$9.18 million | ($0.79) | -15.86 |
| Allegion | $3.77 billion | 3.88 | $597.50 million | $7.20 | 23.68 |
Allegion has higher revenue and earnings than SoundThinking. SoundThinking is trading at a lower price-to-earnings ratio than Allegion, indicating that it is currently the more affordable of the two stocks.
Analyst Recommendations
This is a summary of recent ratings and price targets for SoundThinking and Allegion, as reported by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| SoundThinking | 0 | 0 | 5 | 0 | 3.00 |
| Allegion | 0 | 7 | 2 | 0 | 2.22 |
SoundThinking presently has a consensus target price of $20.80, indicating a potential upside of 66.00%. Allegion has a consensus target price of $166.75, indicating a potential downside of 2.19%. Given SoundThinking’s stronger consensus rating and higher possible upside, research analysts clearly believe SoundThinking is more favorable than Allegion.
Risk & Volatility
SoundThinking has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, Allegion has a beta of 1.07, meaning that its share price is 7% more volatile than the S&P 500.
Institutional & Insider Ownership
60.7% of SoundThinking shares are held by institutional investors. Comparatively, 92.2% of Allegion shares are held by institutional investors. 10.4% of SoundThinking shares are held by company insiders. Comparatively, 0.2% of Allegion shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
Summary
Allegion beats SoundThinking on 9 of the 14 factors compared between the two stocks.
About SoundThinking
SoundThinking, Inc., a public safety technology company that provides transformative solutions and strategic advisory services for law enforcement and civic leadership. Its SafetySmart Platform, an integrated suite of data-driven tools that enable law enforcement and community violence prevention and health organizations to be efficient in public safety outcomes. It offers ShotSpotter, an acoustic gunshot detection system; CrimeTracer, a law enforcement search engine; CaseBuilder, an investigation management system; and ResourceRouter, a software that directs patrol and community anti-violence resources to help maximize their impact. The company sells its solutions through its direct sales teams. The company was formerly known as ShotSpotter, Inc. and changed its name to SoundThinking, Inc. in April 2023. SoundThinking, Inc. was founded in 1996 and is headquartered in Fremont, California.
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.
Receive News & Ratings for SoundThinking Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for SoundThinking and related companies with MarketBeat.com's FREE daily email newsletter.
