MSA Safety Incorporporated (NYSE:MSA – Get Free Report) and Allegion (NYSE:ALLE – Get Free Report) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their earnings, risk, valuation, dividends, profitability, analyst recommendations and institutional ownership.
Dividends
MSA Safety Incorporporated pays an annual dividend of $2.12 per share and has a dividend yield of 1.3%. Allegion pays an annual dividend of $2.20 per share and has a dividend yield of 1.5%. MSA Safety Incorporporated pays out 29.9% of its earnings in the form of a dividend. Allegion pays out 29.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. MSA Safety Incorporporated has increased its dividend for 56 consecutive years and Allegion has increased its dividend for 11 consecutive years. Allegion is clearly the better dividend stock, given its higher yield and lower payout ratio.
Analyst Recommendations
This is a breakdown of current ratings and price targets for MSA Safety Incorporporated and Allegion, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MSA Safety Incorporporated | 0 | 3 | 3 | 0 | 2.50 |
| Allegion | 0 | 7 | 3 | 0 | 2.30 |
Risk & Volatility
MSA Safety Incorporporated has a beta of 0.96, suggesting that its share price is 4% less volatile than the S&P 500. Comparatively, Allegion has a beta of 1.03, suggesting that its share price is 3% more volatile than the S&P 500.
Profitability
This table compares MSA Safety Incorporporated and Allegion’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MSA Safety Incorporporated | 14.88% | 24.48% | 12.61% |
| Allegion | 15.83% | 38.06% | 14.15% |
Earnings & Valuation
This table compares MSA Safety Incorporporated and Allegion”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MSA Safety Incorporporated | $1.87 billion | 3.42 | $278.92 million | $7.08 | 23.38 |
| Allegion | $4.07 billion | 3.06 | $643.80 million | $7.44 | 19.42 |
Allegion has higher revenue and earnings than MSA Safety Incorporporated. Allegion is trading at a lower price-to-earnings ratio than MSA Safety Incorporporated, indicating that it is currently the more affordable of the two stocks.
Institutional and Insider Ownership
92.5% of MSA Safety Incorporporated shares are held by institutional investors. Comparatively, 92.2% of Allegion shares are held by institutional investors. 0.7% of MSA Safety Incorporporated shares are held by company insiders. Comparatively, 0.2% of Allegion shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.
Summary
Allegion beats MSA Safety Incorporporated on 9 of the 16 factors compared between the two stocks.
About MSA Safety Incorporporated
MSA Safety Incorporated develops, manufactures, and supplies safety products and technology solutions that protect people and facility infrastructures in the fire service, energy, utility, construction, and industrial manufacturing applications, as well as heating, ventilation, air conditioning, and refrigeration industries worldwide. The company's core product offerings include fixed gas and flame detection systems, such as gas detection monitoring systems, and flame detectors and open-path infrared gas detectors; breathing apparatus products, including self-contained breathing apparatus; hand-held portable gas detection instruments to detect the presence or absence of various gases in the air; industrial head protection products; firefighter helmets and protective apparel; and fall protection equipment, such as confined space equipment, harnesses, lanyards, and self-retracting lifelines, as well as engineered systems. In addition, the company offers air-purifying respirators, eye and face protection products, ballistic helmets, and gas masks. It serves distributors and end-users through indirect and direct sales channels. The company offers its products under the V-Gard, Cairns, and Gallet brand names. MSA Safety Incorporated was founded in 1914 and is based in Cranberry Township, Pennsylvania.
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.
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