Allegion vs Lennox International
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KIRA’s take AI analyst
I put Allegion and Lennox International side by side, using each one’s latest annual report. Here is what stands out:
- Lennox International is the larger business, with $5.2B of revenue in fiscal 2025 against $4.1B for Allegion.
- Allegion grew revenue faster (7.8%, against −2.7%).
- Allegion kept more of each dollar of sales as operating profit (21.1% operating margin, against 20.1%).
- Allegion turned more of its sales into free cash flow (16.9% FCF margin, against 12.3%).
- Lennox International earned a higher return on the capital invested in it (40.1%, against 21.5%).
- Investors pay more for each dollar of Allegion’s earnings: a P/E of 22.2x against 16.2x for Lennox International.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Allegion
ALLE
8/11
Revenue growth5-year growthGross marginOperating marginNet marginFCF marginPiotroski F-scoreShare count change
Lennox International
LII
3/11
Return on capitalReturn on equityNet debt / EBITDA
Side by side
Best in the row
| Latest fiscal year | ALLE FY25 | LII FY25 |
|---|---|---|
| Size | ||
| Market cap | $15.2B | $12.8B |
| Revenue | $4.1B | $5.2B |
| Free cash flow | $686M | $639M |
| Net income | $644M | $806M |
| Growth | ||
| Revenue growth | 7.8% | −2.7% |
| 5-year growth | 8.4% | 7.4% |
| Share count change | −1.1% | −1.1% |
| Profitability | ||
| Gross margin | 45.2% | 33.4% |
| Operating margin | 21.1% | 20.1% |
| Net margin | 15.8% | 15.5% |
| FCF margin | 16.9% | 12.3% |
| Return on capital | 21.5% | 40.1% |
| Return on equity | 36.1% | 75.8% |
| Balance sheet | ||
| Net debt | $1.6B | $1.4B |
| Net debt / EBITDA | 1.6x | 1.2x |
| Dividends and buybacks | $255M | $655M |
| Valuation & quality | ||
| P/E | 22.2x | 16.2x |
| Piotroski F-score | 8 | 5 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
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.