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 $11.9B against $7.1B — 1.7× the size. Lennox International, Inc. trades at the lower P/E: 16.2× against 22.8×. Armstrong World Industries, Inc. grew revenue faster over the last twelve months: 9.11% against 1.92%. Armstrong World Industries, Inc. has the higher net margin (18.4% vs 13.8%) and the lower return on invested capital (21.4% vs 26.3%). Both pay a dividend; Lennox International, Inc. yields more (1.52% 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 22.79 16.17 23.33
P/S 4.12 2.21 2.09
P/B 8.05 9.13 2.85
Price to free cash flow 33.03 14.35 18.42
EV/EBITDA 13.29 11.38 13.29
EV/Sales 4.37 2.41 2.28
Earnings yield 4.39% 6.19% 3.04%
Free cash flow yield 3.03% 6.97% 4.26%

Profitability

Metric AWI LII Building Products & Equipment median
Gross margin 39.83% 32.62% 31.88%
Operating margin 25.84% 18.84% 7.18%
Net margin 18.38% 13.76% 4.11%
Free cash flow margin 12.48% 15.38% 6.41%
Return on equity 36.00% 62.82% 5.95%
Return on assets 16.47% 18.26% 3.90%
Return on invested capital 21.35% 26.31% 5.54%

Growth

Metric AWI LII Building Products & Equipment median
Revenue growth (TTM) 9.11% 1.92% 6.27%
EPS growth (last fiscal year) 17.61% 1.11% (28.29%)
Revenue growth, 5-year CAGR 11.59% 7.41% 4.81%
Net income growth, 5-year CAGR 0.00% 17.73% 0.00%

Health

Metric AWI LII Building Products & Equipment median
Debt to equity 0.56 0.89 0.55
Current ratio 1.45 1.21 1.83
Net debt to EBITDA 0.59 0.98 1.45

Dividend

Metric AWI LII Building Products & Equipment median
Dividend yield 0.81% 1.52% 1.37%
Payout ratio 0.19 0.25 0.28

Size

Metric AWI LII Building Products & Equipment median
Market cap 7.13b 11.93b 3.22b

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