Critical Analysis: Cadre (NYSE:CDRE) & Assa Abloy (OTCMKTS:ASAZY)

Cadre (NYSE:CDRE) and Assa Abloy (OTCMKTS:ASAZY) are both industrials companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, risk, dividends, institutional ownership, analyst recommendations, earnings and valuation.

Volatility & Risk

Cadre has a beta of 1.32, meaning that its stock price is 32% more volatile than the S&P 500. Comparatively, Assa Abloy has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.

Dividends

Cadre pays an annual dividend of $0.40 per share and has a dividend yield of 1.3%. Assa Abloy pays an annual dividend of $0.17 per share and has a dividend yield of 1.0%. Cadre pays out 44.9% of its earnings in the form of a dividend. Assa Abloy pays out 22.4% 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. Cadre has raised its dividend for 2 consecutive years. Cadre is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Institutional and Insider Ownership

44.0% of Cadre shares are owned by institutional investors. 30.1% of Cadre shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Profitability

This table compares Cadre and Assa Abloy’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Cadre	5.80%	12.39%	5.08%
Assa Abloy	10.51%	15.93%	7.58%

Analyst Recommendations

This is a breakdown of current ratings and target prices for Cadre and Assa Abloy, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Cadre	1	2	3	1	2.57
Assa Abloy	0	3	2	2	2.86

Cadre currently has a consensus target price of $39.75, indicating a potential upside of 30.16%. Given Cadre’s higher possible upside, equities analysts clearly believe Cadre is more favorable than Assa Abloy.

Earnings and Valuation

This table compares Cadre and Assa Abloy”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Cadre	$610.31 million	2.14	$44.14 million	$0.89	34.31
Assa Abloy	$15.58 billion	2.51	$1.50 billion	$0.76	23.13

Assa Abloy has higher revenue and earnings than Cadre. Assa Abloy is trading at a lower price-to-earnings ratio than Cadre, indicating that it is currently the more affordable of the two stocks.

About Cadre

Cadre Holdings, Inc. manufactures and distributes safety that provides protection to users in hazardous or life-threatening situations in the United States and internationally. The company operates in two segments, Products and Distribution. It offers body armor product, such as concealable, corrections, and tactical armor under the Safariland and Protech Tactical brand names; survival suits, remotely operated vehicles, specialty tools, blast sensors, accessories, and vehicle blast attenuation seats for bomb safety technicians; bomb suits; duty gear, including belts and accessories; and other protective equipment comprising communications gear, forensic and investigation products, firearms cleaning solutions, and crowd control products. The company also offers third-party products, such as uniforms, optics, boots, firearms, and ammunition. It serves first responders, such as state and local law enforcement, fire and rescue, explosive ordnance disposal technicians, emergency medical technicians, fishing, and wildlife enforcement and departments of corrections, as well as federal agencies including the U.S. Department of State, U.S. Department of Defense, U.S. Department of Interior, U.S. Department of Justice, U.S. Department of Homeland Security, U.S. Department of Corrections, the Department of Energy, Los Alamos National Laboratories, Waste Isolation Plant, and various foreign government agencies. Cadre Holdings, Inc. was founded in 1964 and is headquartered in Jacksonville, Florida.

About Assa Abloy

ASSA ABLOY AB (publ) provides door opening and access products, solutions, and services for the institutional, commercial, and residential markets in Europe, the Middle East, India, Africa, North and South America, Asia, and Oceania. The company provides digital access solutions, such as electronic access control ecosystem, wireless solutions, electronic key solutions, standalone access solutions, and wired solutions; swing, revolving, and sliding doors; mechanical products, including hinges, lever handles, mortise lockcases, euro profile cylinders, panic exit devices, door closers, floor spring, and general hardware; and doors. It offers Openings Studio, a building information modeling software ecosystem is collaboration tool for designing, documenting, and managing openings. The company provides its products primarily under the ASSA ABLOY, Yale, and HID brands. It sells its products through distributors and wholesalers. The company serves aviation, education, distribution and logistics, entertainment and public facility, finance and banking, government and military, healthcare, hospitality, manufacturing, mining, office and enterprise, homes and residence, retail, shipyards, and transportation industries. ASSA ABLOY AB (publ) was incorporated in 1954 and is based in Stockholm, Sweden.