Allegion vs Advanced Drainage Systems
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The short version
- Allegion is the larger business, with $4.1B of revenue in fiscal 2025 against $3.1B for Advanced Drainage Systems.
- Allegion grew revenue faster (7.8%, against 5.0%).
- Allegion kept more of each dollar of sales as operating profit (21.1% operating margin, against 20.3%).
- Advanced Drainage Systems turned more of its sales into free cash flow (18.7% FCF margin, against 16.9%).
- Allegion earned a higher return on the capital invested in it (21.5%, against 15.8%).
- Investors pay more for each dollar of Advanced Drainage Systems’s earnings: a P/E of 22.5x against 22.3x for Allegion.
| Latest fiscal year | ALLE · FY25 | WMS · FY26 |
|---|---|---|
| Size | ||
| Market cap | $15.2B | $10.0B |
| Revenue | $4.1B | $3.1B |
| Free cash flow | $686M | $569M |
| Net income | $644M | $427M |
| Growth | ||
| Revenue growth | 7.8% | 5.0% |
| 5-year growth | 8.4% | 9.0% |
| Share count change | −1.1% | 0.3% |
| Profitability | ||
| Gross margin | 45.2% | 38.3% |
| Operating margin | 21.1% | 20.3% |
| Net margin | 15.8% | 14.0% |
| FCF margin | 16.9% | 18.7% |
| Return on capital | 21.5% | 15.8% |
| Return on equity | 36.1% | 25.2% |
| Balance sheet | ||
| Net debt | $1.6B | $1.6B |
| Net debt / EBITDA | 1.6x | 1.9x |
| Dividends and buybacks | $255M | $148M |
| Valuation & quality | ||
| P/E | 22.3x | 22.5x |
| Piotroski F-score | 8 | 4 |
Revenue
FY17
ALLE $2.4B
WMS $1.3B
FY18
ALLE $2.7B
WMS $1.3B
FY19
ALLE $2.9B
WMS $1.4B
FY20
ALLE $2.7B
WMS $1.7B
FY21
ALLE $2.9B
WMS $2.0B
FY22
ALLE $3.3B
WMS $2.8B
FY23
ALLE $3.7B
WMS $3.1B
FY24
ALLE $3.8B
WMS $2.9B
FY25
ALLE $4.1B
WMS $2.9B
FY26
ALLE —
WMS $3.1B
ALLE
WMS
Operating margin
FY17
ALLE 20.5%
WMS 6.1%
FY18
ALLE 19.3%
WMS 6.6%
FY19
ALLE 19.8%
WMS 9.4%
FY20
ALLE 14.8%
WMS −5.7%
FY21
ALLE 18.5%
WMS 17.4%
FY22
ALLE 17.9%
WMS 14.9%
FY23
ALLE 19.4%
WMS 23.4%
FY24
ALLE 20.7%
WMS 25.5%
FY25
ALLE 21.1%
WMS 22.6%
FY26
ALLE —
WMS 20.3%
ALLE
WMS
Free cash flow
FY17
ALLE $298M
WMS $57.6M
FY18
ALLE $409M
WMS $95.4M
FY19
ALLE $423M
WMS $108M
FY20
ALLE $443M
WMS $239M
FY21
ALLE $443M
WMS $373M
FY22
ALLE $396M
WMS $126M
FY23
ALLE $516M
WMS $541M
FY24
ALLE $583M
WMS $534M
FY25
ALLE $686M
WMS $369M
FY26
ALLE —
WMS $569M
ALLE
WMS
Return on capital
FY17
ALLE 26.5%
WMS 8.4%
FY18
ALLE 30.5%
WMS 12.6%
FY19
ALLE 26.5%
WMS 14.4%
FY20
ALLE 19.2%
WMS −6.7%
FY21
ALLE 27.3%
WMS 16.6%
FY22
ALLE 22.9%
WMS 17.7%
FY23
ALLE 22.1%
WMS 29.2%
FY24
ALLE 22.8%
WMS 27.9%
FY25
ALLE 21.5%
WMS 22.0%
FY26
ALLE —
WMS 15.8%
ALLE
WMS
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.