Critical Contrast: Allied Security Innovations (OTCMKTS:ADSV) versus Eastern (NASDAQ:EML)

Eastern (NASDAQ:EML) and Allied Security Innovations (OTCMKTS:ADSV) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their analyst recommendations, profitability, institutional ownership, dividends, earnings, valuation and risk.

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Eastern and Allied Security Innovations, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Eastern	0	1	0	0	2.00
Allied Security Innovations	0	0	0	0	0.00

Valuation and Earnings

This table compares Eastern and Allied Security Innovations”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Eastern	$258.12 million	0.46	-$8.53 million	$1.24	15.88
Allied Security Innovations	N/A	N/A	N/A	N/A	N/A

Allied Security Innovations has lower revenue, but higher earnings than Eastern.

Risk & Volatility

Eastern has a beta of 1, suggesting that its share price has a similar volatility profile to the S&P 500.Comparatively, Allied Security Innovations has a beta of -3.04, suggesting that its share price is 404% less volatile than the S&P 500.

Profitability

This table compares Eastern and Allied Security Innovations’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Eastern	2.96%	7.18%	3.84%
Allied Security Innovations	N/A	N/A	N/A

Institutional & Insider Ownership

77.0% of Eastern shares are owned by institutional investors. 17.0% of Eastern shares are owned by insiders. Comparatively, 22.1% of Allied Security Innovations shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Eastern beats Allied Security Innovations on 7 of the 8 factors compared between the two stocks.

About Eastern

The Eastern Company designs, manufactures, and sells engineered solutions to industrial markets in the United States and internationally. The company offers turnkey returnable packaging solutions, which are used in the assembly processes of vehicles, aircraft, and durable goods, as well as in production processes of plastic packaging products, packaged consumer goods, and pharmaceuticals; designs and manufactures blow mold tools and injection blow mold tooling products, and 2-step stretch blow molds and related components for the stretch blow molding industry; and supplies blow molds and change parts to the food, beverage, healthcare, and chemical industries. It also provides rotary latches, compression latches, draw latches, hinges, camlocks, key switches, padlocks, and handles; and development and program management services for custom electromechanical and mechanical systems for original equipment manufacturers (OEMs) and customer applications. In addition, the company designs and manufactures proprietary vision technology for OEMs and aftermarket applications, as well as offers aftermarket components to the heavy- and medium-duty truck, motorhome, and bus markets. The Eastern Company was founded in 1858 and is based in Shelton, Connecticut.

About Allied Security Innovations

Allied Security Innovations, Inc., through its subsidiary, CGM Applied Security Technologies, Inc., manufactures and distributes indicative and barrier security seals, security tapes, and related packaging security systems in the United States and internationally. It also provides protective security products for palletized cargo; and physical security systems for tractors, trailers, and containers, as well as various specialized authentication products. The company's principal products include tapes, self-wound security tapes, void labels and void tapes for bag closure, SUPERSEALS, custom coated products, conductive inks and membrane switch components, electro-magnetic asset protection systems, locks, sentry sensors, and other related items. It provides its products for use in aircraft and truck seals, fiber and steel drum seals, motor vehicle inspection seals, pharmaceutical packaging, box or container closure seals, cash bag components, computer seals, validation devices, general security products, and law enforcement agencies. The company also develops, assembles, markets, and installs computer systems, which capture video, digitally captured images, and scanned images; digitizes the image; links the digitized images to text/data; and stores the image and text on a computer database, which allows for transmitting the image and text by computer or telecommunication links to remote locations. In addition, it offers maintenance and support, and related services; and software. The company serves producers of various items, such as perfumes, computers, silicon chips, jewelry, and cash and negotiable documents. The company was formerly known as Digital Descriptor Systems, Inc. and changed its name Allied Security Innovations, Inc. in December 2006. Allied Security Innovations, Inc. was founded in 1986 and is based in West Palm Beach, Florida.