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ALLE vs LECO

ALLE
Allegion plc
NEUTRAL
Price
$166.80
Market Cap
$14.35B
Sector
Industrials
AI Confidence
72%
LECO
Lincoln Electric Holdings, Inc.
NEUTRAL
Price
$256.26
Market Cap
$14.05B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
ALLE
22.57
LECO
27.47
Forward P/E
ALLE
18.82
LECO
21.61
P/B Ratio
ALLE
7.37
LECO
9.56
P/S Ratio
ALLE
3.61
LECO
3.32
EV/EBITDA
ALLE
16.96
LECO
18.64

Profitability

Gross Margin
ALLE
45.12%
LECO
36.34%
Operating Margin
ALLE
21.86%
LECO
17.01%
Profit Margin
ALLE
16.09%
LECO
12.3%
ROE
ALLE
36.41%
LECO
37.22%
ROA
ALLE
10.39%
LECO
12.17%

Growth

Revenue Growth
ALLE
10.7%
LECO
5.5%
Earnings Growth
ALLE
9.5%
LECO
-0.3%

Financial Health

Debt/Equity
ALLE
1.16
LECO
0.92
Current Ratio
ALLE
1.77
LECO
1.82
Quick Ratio
ALLE
1.01
LECO
0.97

Dividends

Dividend Yield
ALLE
1.22%
LECO
1.23%
Payout Ratio
ALLE
27.2%
LECO
32.62%

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
LECO NEUTRAL

LECO exhibits strong fundamental health with a Piotroski F-Score of 7/9 and an exceptional ROE of 37.22%, indicating high operational efficiency. However, the stock is trading at a massive premium, with a current price of $256.26 far exceeding both the Graham Number ($75.01) and the growth-based Intrinsic Value ($65.31). While analyst sentiment remains bullish with a target of $290.44, this is contradicted by bearish insider selling and a 0/100 technical trend. The company is a high-quality industrial performer currently priced for perfection, leaving little margin of safety.

Strengths
Strong financial health evidenced by a Piotroski F-Score of 7/9
Exceptional Return on Equity (ROE) of 37.22%
Consistent track record of beating earnings estimates over 25 quarters
Risks
Severe valuation gap between current price and deterministic fair value (Graham/Intrinsic)
Stagnant year-over-year earnings growth (-0.30%)
Bearish insider activity, specifically sales by the CFO and General Counsel

Compare Another Pair

ALLE vs LECO: Head-to-Head Comparison

This page compares Allegion plc (ALLE) and Lincoln Electric Holdings, Inc. (LECO) 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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