Allison Transmission vs Wabtec
Add, change or remove companies; up to four.
KIRA’s take AI analyst
I put Allison Transmission and Wabtec side by side, using each one’s latest annual report. Here is what stands out:
- Wabtec is the larger business, with $11.2B of revenue in fiscal 2025 against $3.0B for Allison Transmission, about 3.7 times as much.
- Wabtec grew revenue faster (7.5%, against −6.7%).
- Allison Transmission kept more of each dollar of sales as operating profit (29.2% operating margin, against 16.1%).
- Allison Transmission turned more of its sales into free cash flow (22.0% FCF margin, against 13.4%).
- Allison Transmission earned a higher return on the capital invested in it (20.8%, against 9.1%).
- Investors pay more for each dollar of Wabtec’s earnings: a P/E of 34.5x against 17.1x for Allison Transmission.
Who comes out ahead
Of the 11 measures where higher (or lower) is clearly better, how many each company leads.
Allison Transmission
ALSN
8/11
Gross marginOperating marginNet marginFCF marginReturn on capitalReturn on equityNet debt / EBITDAShare count change
Wabtec
WAB
3/11
Revenue growth5-year growthPiotroski F-score
Side by side
Best in the row
| Latest fiscal year | ALSN FY25 | WAB FY25 |
|---|---|---|
| Size | ||
| Market cap | $9.0B | $46.9B |
| Revenue | $3.0B | $11.2B |
| Free cash flow | $661M | $1.5B |
| Net income | $623M | $1.2B |
| Growth | ||
| Revenue growth | −6.7% | 7.5% |
| 5-year growth | 7.7% | 8.1% |
| Share count change | −3.4% | −2.1% |
| Profitability | ||
| Gross margin | 48.6% | 34.1% |
| Operating margin | 29.2% | 16.1% |
| Net margin | 20.7% | 10.5% |
| FCF margin | 22.0% | 13.4% |
| Return on capital | 20.8% | 9.1% |
| Return on equity | 35.4% | 11.0% |
| Balance sheet | ||
| Net debt | $1.4B | $4.8B |
| Net debt / EBITDA | 1.4x | 2.1x |
| Dividends and buybacks | $419M | $396M |
| Valuation & quality | ||
| P/E | 17.1x | 34.5x |
| Piotroski F-score | 6 | 7 |
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.