Allegion vs Trane Technologies: Which Is the Stronger Buy Today?

TT: Trane Technologies logo
TT
Trane Technologies

Trane Technologies surged 20% during the past Month. You may be tempted to buy more, or may want to reduce your exposure. But there is an entirely different perspective you might be missing. Is there a better alternative? Turns out, its peer Allegion gives you more. Allegion (ALLE) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Trane Technologies (TT) stock, suggesting you may be better off investing in ALLE

  • ALLE’s quarterly revenue growth was 9.3%, vs. TT’s 5.5%.
  • In addition, its Last 12 Months revenue growth came in at 7.8%, ahead of TT’s 7.5%.
  • ALLE leads on profitability over both periods – LTM margin of 21.1% and 3-year average of 20.5%.

These differences become even clearer when you look at the financials side by side. The table highlights how TT’s fundamentals stack up against those of ALLE on growth, margins, momentum, and valuation multiples.

Trefis: TT Stock Insights

Valuation & Performance Overview

  TT ALLE Preferred
     
Valuation      
P/EBIT Ratio 25.9 15.9 ALLE
     
Revenue Growth      
Last Quarter 5.5% 9.3% ALLE
Last 12 Months 7.5% 7.8% ALLE
Last 3 Year Average 10.1% 7.6% TT
     
Operating Margins      
Last 12 Months 18.6% 21.1% ALLE
Last 3 Year Average 17.5% 20.5% ALLE
     
Momentum      
Last 3 Year Return 164.4% 47.0% TT

Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: TT Revenue Comparison | ALLE Revenue Comparison
See more margin details: TT Operating Income Comparison | ALLE Operating Income Comparison

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See detailed fundamentals on Buy or Sell ALLE Stock and Buy or Sell TT Stock. Below we compare market return and related metrics across years.

Historical Market Performance

  2021 2022 2023 2024 2025 2026 Total [1] Avg Best
Returns
TT Return 41% -15% 47% 53% 6% 18% 238%   <===
ALLE Return 15% -19% 22% 5% 24% -0% 46%    
S&P 500 Return 27% -19% 24% 23% 16% -0% 82%    
Monthly Win Rates [3]
TT Win Rate 67% 33% 67% 83% 50% 100%   67% <===
ALLE Win Rate 50% 33% 42% 58% 75% 50%   51%  
S&P 500 Win Rate 75% 42% 67% 75% 67% 50%   62%  
Max Drawdowns [4]
TT Max Drawdown -4% -40% -2% -3% -14% -3%   -11%  
ALLE Max Drawdown -8% -32% -7% -9% -9% -0%   -11%  
S&P 500 Max Drawdown -1% -25% -1% -2% -15% -1%   -7% <===

[1] Cumulative total returns since the beginning of 2021
[2] 2026 data is for the year up to 2/24/2026 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year

No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read ALLE Dip Buyer Analyses and TT Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.

Still not sure about TT or ALLE? Consider portfolio approach.

Portfolios Over Individual Stock Picks

Stocks can jump or crash but long term success comes from staying invested. The right portfolio helps you ride gains and cushion single stock drops.

Beating the market consistently is hard, but the Trefis High Quality (HQ) Portfolio makes it look achievable. By selecting 30 high-conviction stocks, the HQ strategy has historically outpaced the S&P 500, S&P Mid-cap, and Russell 2000. See how this curated selection delivers superior risk-adjusted returns in our detailed performance factsheet.