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 $12.4B against $7.0B — 1.8× the size. Lennox International, Inc. trades at the lower P/E: 16.1× against 23.0×. 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; Lennox International, Inc. yields more (1.49% vs 0.81%). Across the 23 metrics below, Lennox International, Inc. leads on 13 and Armstrong World Industries, Inc. on 10.

Valuation

Metric AWI LII Building Products & Equipment median
P/E 23.04 16.11 23.15
P/S 4.22 2.34 2.02
P/B 8.08 9.57 2.81
Price to free cash flow 28.85 16.76 16.84
EV/EBITDA 13.61 11.62 12.85
EV/Sales 4.48 2.55 2.04
Earnings yield 4.34% 6.21% 2.76%
Free cash flow yield 3.47% 5.97% 4.23%

Profitability

Metric AWI LII Building Products & Equipment median
Gross margin 40.30% 33.33% 29.19%
Operating margin 25.79% 19.67% 6.99%
Net margin 18.60% 14.87% 4.05%
Free cash flow margin 14.61% 13.97% 7.60%
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% (34.13%)
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 0.81% 1.49% 1.43%
Payout ratio 0.19 0.24 0.29

Size

Metric AWI LII Building Products & Equipment median
Market cap 7.04b 12.39b 1.17b

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