Armstrong World Industries, Inc. (AWI) vs Lennox International, Inc. (LII)

Armstrong World Industries, 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 $6.9B — 1.9× the size. Lennox International, Inc. trades at the lower P/E: 16.8× against 22.3×. Armstrong World Industries, Inc. grew revenue faster over the last twelve months: 8.57% against −2.11%. Armstrong World Industries, Inc. has the higher net margin (18.6% vs 14.9%) and the lower return on invested capital (20.6% vs 27.0%). Both pay a dividend; Armstrong World Industries, Inc. yields more (0.99% vs 0.96%). Across the 23 metrics below, Lennox International, Inc. leads on 12 and Armstrong World Industries, Inc. on 11.

Valuation

Metric AWI LII Building Products & Equipment median
P/E 22.30 16.83 24.54
P/S 4.08 2.45 2.00
P/B 7.82 10.00 3.02
Price to free cash flow 27.93 17.51 18.49
EV/EBITDA 13.20 12.09 12.63
EV/Sales 4.34 2.66 2.14
Earnings yield 4.48% 5.94% 2.74%
Free cash flow yield 3.58% 5.71% 3.58%

Profitability

Metric AWI LII Building Products & Equipment median
Gross margin 40.30% 33.33% 29.19%
Operating margin 25.79% 19.67% 6.84%
Net margin 18.60% 14.87% 4.05%
Free cash flow margin 14.61% 13.97% 8.72%
Return on equity 36.62% 71.76% 9.28%
Return on assets 16.30% 19.24% 2.88%
Return on invested capital 20.58% 27.00% 5.16%

Growth

Metric AWI LII Building Products & Equipment median
Revenue growth (TTM) 8.57% (2.11%) 3.11%
EPS growth (last fiscal year) 17.61% 1.11% —
Revenue growth, 5-year CAGR 11.59% 7.41% 5.37%
Net income growth, 5-year CAGR 0.00% 17.73% 0.00%

Health

Metric AWI LII Building Products & Equipment median
Debt to equity 0.59 0.90 0.43
Current ratio 1.52 1.57 1.82
Net debt to EBITDA 0.59 0.98 0.98

Dividend

Metric AWI LII Building Products & Equipment median
Dividend yield 0.99% 0.96% 1.20%
Payout ratio 0.20 0.28 0.04

Size

Metric AWI LII Building Products & Equipment median
Market cap 6.85b 12.71b 1.18b

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