AAON, Inc. (AAON) vs Lennox International, Inc. (LII)

AAON, Inc. and Lennox International, Inc. are both Building Products & Equipment companies. Lennox International, Inc. is the larger, with a market value of $12.7B against $7.0B — 1.8× the size. Lennox International, Inc. trades at the lower P/E: 16.8× against 45.7×. AAON, Inc. grew revenue faster over the last twelve months: 53.5% against −2.11%. Lennox International, Inc. has the higher net margin (14.9% vs 8.24%) and the higher return on invested capital (27.0% vs 9.31%). Both pay a dividend; Lennox International, Inc. yields more (0.96% vs 0.51%). Across the 22 metrics below, Lennox International, Inc. leads on 17 and AAON, Inc. on 5.

Valuation

Metric AAON LII Building Products & Equipment median
P/E 45.69 16.83 24.54
P/S 3.79 2.45 2.00
P/B 7.25 10.00 3.02
Price to free cash flow n/m 17.51 18.49
EV/EBITDA 25.90 12.09 12.63
EV/Sales 4.01 2.66 2.14
Earnings yield 2.19% 5.94% 2.74%
Free cash flow yield (1.77%) 5.71% 3.58%

Profitability

Metric AAON LII Building Products & Equipment median
Gross margin 25.57% 33.33% 29.19%
Operating margin 11.05% 19.67% 6.84%
Net margin 8.24% 14.87% 4.05%
Free cash flow margin (6.71%) 13.97% 8.72%
Return on equity 17.28% 71.76% 9.28%
Return on assets 9.76% 19.24% 2.88%
Return on invested capital 9.31% 27.00% 5.16%

Growth

Metric AAON LII Building Products & Equipment median
Revenue growth (TTM) 53.53% (2.11%) 3.11%
EPS growth (last fiscal year) (36.14%) 1.11% —
Revenue growth, 5-year CAGR 22.89% 7.41% 5.37%
Net income growth, 5-year CAGR 6.37% 17.73% 0.00%

Health

Metric AAON LII Building Products & Equipment median
Debt to equity 0.43 0.90 0.43
Current ratio 3.01 1.57 1.82
Net debt to EBITDA 1.76 0.98 0.98

Dividend

Metric AAON LII Building Products & Equipment median
Dividend yield 0.51% 0.96% 1.20%
Payout ratio 0.18 0.28 0.04

Size

Metric AAON LII Building Products & Equipment median
Market cap 6.99b 12.71b 1.18b

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