Allegion
ALLE · Building Products
$178.98
1.4%A. O. Smith
AOS · Building Products
$61.65
1.3%The short version
- Allegion is the larger business, with $4.1B of revenue in fiscal 2025 against $3.8B for A. O. Smith.
- Allegion grew revenue faster (7.8%, against 0.3%).
- Allegion kept more of each dollar of sales as operating profit (21.1% operating margin, against 19.0% operating margin).
- Allegion turned more of its sales into free cash flow (16.9% FCF margin, against 14.3% FCF margin).
- A. O. Smith earned a higher return on the capital invested in it (30.7%, against 21.5%).
- Investors pay more for each dollar of Allegion’s earnings: a P/E of 22.3x against 17.1x for A. O. Smith.
| Latest fiscal year | ALLE · FY25 | AOS · FY25 |
|---|---|---|
| Size | ||
| Market cap | $15.2B | $8.5B |
| Revenue | $4.1B | $3.8B |
| Free cash flow | $686M | $546M |
| Net income | $644M | $546M |
| Growth | ||
| Revenue growth | 7.8% | 0.3% |
| 5-year growth | 8.4% | 5.8% |
| Share count change | −1.1% | −3.5% |
| Profitability | ||
| Gross margin | 45.2% | 38.8% |
| Operating margin | 21.1% | 19.0% |
| Net margin | 15.8% | 14.3% |
| FCF margin | 16.9% | 14.3% |
| Return on capital | 21.5% | 30.7% |
| Return on equity | 36.1% | 29.2% |
| Balance sheet | ||
| Net debt | $1.6B | −$38.2M |
| Net debt / EBITDA | 1.6x | −0.1x |
| Dividends and buybacks | $255M | $597M |
| Valuation & quality | ||
| P/E | 22.3x | 17.1x |
| Piotroski F-score | 8 | 7 |
FY16
ALLE $2.2B
AOS $2.7B
FY17
ALLE $2.4B
AOS $3.0B
FY18
ALLE $2.7B
AOS $3.2B
FY19
ALLE $2.9B
AOS $3.0B
FY20
ALLE $2.7B
AOS $2.9B
FY21
ALLE $2.9B
AOS $3.5B
FY22
ALLE $3.3B
AOS $3.8B
FY23
ALLE $3.7B
AOS $3.9B
FY24
ALLE $3.8B
AOS $3.8B
FY25
ALLE $4.1B
AOS $3.8B
ALLE
AOS
FY16
ALLE 19.4%
AOS 19.2%
FY17
ALLE 20.5%
AOS 19.3%
FY18
ALLE 19.3%
AOS 19.2%
FY19
ALLE 19.8%
AOS 17.7%
FY20
ALLE 14.8%
AOS 17.4%
FY21
ALLE 18.5%
AOS 19.3%
FY22
ALLE 17.9%
AOS 9.6%
FY23
ALLE 19.4%
AOS 19.4%
FY24
ALLE 20.7%
AOS 18.5%
FY25
ALLE 21.1%
AOS 19.0%
ALLE
AOS
FY16
ALLE $335M
AOS $366M
FY17
ALLE $298M
AOS $232M
FY18
ALLE $409M
AOS $364M
FY19
ALLE $423M
AOS $392M
FY20
ALLE $443M
AOS $505M
FY21
ALLE $443M
AOS $566M
FY22
ALLE $396M
AOS $321M
FY23
ALLE $516M
AOS $598M
FY24
ALLE $583M
AOS $474M
FY25
ALLE $686M
AOS $546M
ALLE
AOS
FY16
ALLE 27.2%
AOS 34.2%
FY17
ALLE 26.5%
AOS 28.4%
FY18
ALLE 30.5%
AOS 38.6%
FY19
ALLE 26.5%
AOS 30.8%
FY20
ALLE 19.2%
AOS 29.3%
FY21
ALLE 27.3%
AOS 39.8%
FY22
ALLE 22.9%
AOS 24.1%
FY23
ALLE 22.1%
AOS 35.2%
FY24
ALLE 22.8%
AOS 31.6%
FY25
ALLE 21.5%
AOS 30.7%
ALLE
AOS
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Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.