Allegion vs Fortune Brands Innovations
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KIRA’s take AI analyst
I put Allegion and Fortune Brands Innovations side by side, using each one’s latest annual report. Here is what stands out:
- Fortune Brands Innovations is the larger business, with $4.5B of revenue in fiscal 2025 against $4.1B for Allegion.
- Allegion grew revenue faster (7.8%, against −3.2%).
- Allegion kept more of each dollar of sales as operating profit (21.1% operating margin, against 11.6%).
- Allegion turned more of its sales into free cash flow (16.9% FCF margin, against 8.2%).
- Allegion earned a higher return on the capital invested in it (21.5%, against 7.7%).
- Investors pay more for each dollar of Fortune Brands Innovations’s earnings: a P/E of 34.8x against 22.5x for Allegion.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Allegion
ALLE
10/11
Revenue growth5-year growthGross marginOperating marginNet marginFCF marginReturn on capitalReturn on equityPiotroski F-scoreNet debt / EBITDA
Fortune Brands Innovations
FBIN
1/11
Share count change
Side by side
Best in the row
| Latest fiscal year | ALLE FY25 | FBIN FY25 |
|---|---|---|
| Size | ||
| Market cap | $15.4B | $5.1B |
| Revenue | $4.1B | $4.5B |
| Free cash flow | $686M | $367M |
| Net income | $644M | $299M |
| Growth | ||
| Revenue growth | 7.8% | −3.2% |
| 5-year growth | 8.4% | 4.3% |
| Share count change | −1.1% | −3.6% |
| Profitability | ||
| Gross margin | 45.2% | 44.6% |
| Operating margin | 21.1% | 11.6% |
| Net margin | 15.8% | 6.7% |
| FCF margin | 16.9% | 8.2% |
| Return on capital | 21.5% | 7.7% |
| Return on equity | 36.1% | 12.4% |
| Balance sheet | ||
| Net debt | $1.6B | $2.3B |
| Net debt / EBITDA | 1.6x | 3.2x |
| Dividends and buybacks | $255M | $368M |
| Valuation & quality | ||
| P/E | 22.5x | 34.8x |
| Piotroski F-score | 8 | 6 |
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.