Resideo Technologies (NYSE:REZI) versus Latch (NASDAQ:LTCH) Critical Contrast

Latch (NASDAQ:LTCH) and Resideo Technologies (NYSE:REZI) are both auto/tires/trucks companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, profitability, analyst recommendations, dividends, valuation, earnings and risk.

Institutional & Insider Ownership

33.7% of Latch shares are owned by institutional investors. Comparatively, 91.1% of Resideo Technologies shares are owned by institutional investors. 0.1% of Resideo Technologies shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Analyst Ratings

This is a summary of current ratings and target prices for Latch and Resideo Technologies, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Latch 0 2 3 0 2.60
Resideo Technologies 0 5 2 0 2.29

Latch currently has a consensus target price of $15.86, suggesting a potential upside of 26.35%. Resideo Technologies has a consensus target price of $29.00, suggesting a potential upside of 15.17%. Given Latch’s stronger consensus rating and higher probable upside, analysts clearly believe Latch is more favorable than Resideo Technologies.

Profitability

This table compares Latch and Resideo Technologies’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Latch N/A N/A N/A
Resideo Technologies 4.18% 14.59% 5.09%

Valuation and Earnings

This table compares Latch and Resideo Technologies’ gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Latch N/A N/A -$7.39 million N/A N/A
Resideo Technologies $5.07 billion 0.72 $37.00 million $1.45 17.37

Resideo Technologies has higher revenue and earnings than Latch.

Summary

Resideo Technologies beats Latch on 7 of the 10 factors compared between the two stocks.

Latch Company Profile

Latch, Inc. makes spaces better places to live, work, and visit through a system of software, devices, and services in the United States. Its products include LatchOS for Commercial Office, a commercial solution that would extend smart access, visitor and delivery management, smart device and sensor control, connectivity, and identity and personalization solutions to meet the needs of modern office spaces; Latch Visitor Express, a contactless visitor entry system; The Latch Lens Partner Program that enables access device partners to leverage Latch's software and Latch Lens; LatchID, an identification system that creates a network of users, across spaces, and devices; and Latch C2, a smart access solution for retrofits and new construction. The company is headquartered in New York City, with additional offices in San Francisco and Taipei.

Resideo Technologies Company Profile

Resideo Technologies, Inc. engages in the provision of critical comfort, residential thermal solutions and security solutions primarily in residential environments. It operates through the following segments: Products & Solutions and ADI Global Distribution. The Products & Solutions Segment offers solutions in Comfort, Residential Thermal Solutions, and Security categories and include temperature and humidity control, thermal, water, and air solutions as well as security panels, sensors, peripherals, wire and cable, communications devices, video cameras, awareness solutions, cloud infrastructure, installation and maintenance tools, and related software. The ADI Global Distribution segment distributes low-voltage electronic and security products such as intrusion and smart home, fire, video surveillance, access control, power, audio and video, networking, communications, wire and cable, enterprise connectivity, and structured wiring. The company was founded on April 24, 2018 and is headquartered in Austin, TX.

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