Allegion (NYSE:ALLE) vs. SoundThinking (NASDAQ:SSTI) Head to Head Contrast

Allegion (NYSE:ALLE) and SoundThinking (NASDAQ:SSTI) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their analyst recommendations, valuation, earnings, profitability, institutional ownership, risk and dividends.

Institutional & Insider Ownership

92.2% of Allegion shares are owned by institutional investors. Comparatively, 60.7% of SoundThinking shares are owned by institutional investors. 0.2% of Allegion shares are owned by insiders. Comparatively, 10.4% of SoundThinking 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.

Volatility & Risk

Allegion has a beta of 1.07, indicating that its share price is 7% more volatile than the S&P 500. Comparatively, SoundThinking has a beta of 1.16, indicating that its share price is 16% more volatile than the S&P 500.

Earnings and Valuation

This table compares Allegion and SoundThinking”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allegion	$3.77 billion	4.03	$597.50 million	$7.20	24.61
SoundThinking	$102.03 million	1.54	-$9.18 million	($0.79)	-15.58

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 recommendations and price targets for Allegion and SoundThinking, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allegion	0	7	2	0	2.22
SoundThinking	0	0	5	0	3.00

Allegion presently has a consensus target price of $170.25, suggesting a potential downside of 3.91%. SoundThinking has a consensus target price of $20.80, suggesting a potential upside of 68.97%. Given SoundThinking’s stronger consensus rating and higher possible upside, analysts plainly believe SoundThinking is more favorable than Allegion.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Allegion	16.15%	42.62%	14.55%
SoundThinking	-9.74%	-13.76%	-7.36%

Summary

Allegion beats SoundThinking on 9 of the 14 factors compared between the two stocks.

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.

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.