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ALLE vs J

ALLE
Allegion plc
NEUTRAL
Price
$166.80
Market Cap
$14.35B
Sector
Industrials
AI Confidence
72%
J
Jacobs Solutions Inc.
NEUTRAL
Price
$126.46
Market Cap
$14.85B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
ALLE
22.57
J
33.37
Forward P/E
ALLE
18.82
J
15.76
P/B Ratio
ALLE
7.37
J
4.32
P/S Ratio
ALLE
3.61
J
1.2
EV/EBITDA
ALLE
16.96
J
13.57

Profitability

Gross Margin
ALLE
45.12%
J
24.45%
Operating Margin
ALLE
21.86%
J
7.43%
Profit Margin
ALLE
16.09%
J
3.5%
ROE
ALLE
36.41%
J
9.73%
ROA
ALLE
10.39%
J
5.68%

Growth

Revenue Growth
ALLE
10.7%
J
12.3%
Earnings Growth
ALLE
9.5%
J
--

Financial Health

Debt/Equity
ALLE
1.16
J
0.65
Current Ratio
ALLE
1.77
J
1.33
Quick Ratio
ALLE
1.01
J
1.29

Dividends

Dividend Yield
ALLE
1.22%
J
1.14%
Payout Ratio
ALLE
27.2%
J
33.77%

AI Verdict

ALLE NEUTRAL

ALLE's Advanced Deterministic Scorecard shows a Piotroski F-Score of 4/9, indicating stable but not strong financial health, while the absence of an Altman Z-Score prevents a definitive distress risk assessment. The company trades above its Graham Number of $61.34 at a current price of $166.80, reflecting a significant premium, though justified in part by solid profitability metrics including a 36.41% ROE and consistent earnings growth. Despite strong historical earnings surprises and solid margins, elevated valuation multiples and bearish insider activity temper upside potential. Analysts concur with a 'hold' recommendation, aligning with the neutral stance.

Strengths
Exceptional return on equity (36.41%) well above sector average (8.29%) indicating efficient capital use
Consistent revenue and earnings growth with 10.70% YoY revenue growth and strong quarterly EPS beats
High gross margin (45.12%) reflecting pricing power and cost control in the security solutions market
Risks
Piotroski F-Score of 4/9 suggests suboptimal financial health with potential weaknesses in profitability or leverage trends
Valuation appears stretched with P/E of 22.57 and Price/Book of 7.37 exceeding sector averages
Bearish insider sentiment with $1.78M in net selling and no insider buys in the last 6 months
J NEUTRAL

Jacobs Solutions Inc. presents a dichotomy between strong operational health and extreme valuation premiums. While the Piotroski F-Score of 6/9 indicates a stable financial foundation and the balance sheet is healthy (Debt/Equity 0.65), the current price of $126.46 trades at a massive premium compared to the Graham Number ($49.98) and Intrinsic Value ($26.53). Revenue growth remains robust at 12.3%, but this is offset by a concerning decline in YoY EPS (-15.8%) and a completely bearish technical trend (0/100).

Strengths
Stable financial health with a Piotroski F-Score of 6/9
Strong revenue growth (12.3% YoY and 12.29% Q/Q)
Conservative leverage with a Debt/Equity ratio of 0.65
Risks
Significant valuation gap between current price and defensive fair value (Graham Number)
Negative earnings trajectory with YoY EPS growth at -15.8% and Q/Q at -36.0%
Extremely bearish technical trend (0/100) and a 19.7% price drop over the last 6 months

Compare Another Pair

ALLE vs J: Head-to-Head Comparison

This page compares Allegion plc (ALLE) and Jacobs Solutions Inc. (J) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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