Builders FirstSource, Inc. (BLDR) vs Lennox International, Inc. (LII)

Builders FirstSource, 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 $6.3B — 2.0× the size. Lennox International, Inc. trades at the lower P/E: 16.8× against 64.3×. Lennox International, Inc. grew revenue faster over the last twelve months: −2.11% against −9.38%. Lennox International, Inc. has the higher net margin (14.9% vs 0.71%) and the higher return on invested capital (27.0% vs 3.19%). Across the 22 metrics below, Lennox International, Inc. leads on 14 and Builders FirstSource, Inc. on 8.

Valuation

Metric BLDR LII Building Products & Equipment median
P/E 64.32 16.83 24.54
P/S 0.44 2.45 2.00
P/B 1.59 10.00 3.02
Price to free cash flow 9.81 17.51 18.49
EV/EBITDA 10.54 12.09 12.63
EV/Sales 0.75 2.66 2.14
Earnings yield 1.55% 5.94% 2.74%
Free cash flow yield 10.20% 5.71% 3.58%

Profitability

Metric BLDR LII Building Products & Equipment median
Gross margin 29.19% 33.33% 29.19%
Operating margin 3.01% 19.67% 6.84%
Net margin 0.71% 14.87% 4.05%
Free cash flow margin 4.49% 13.97% 8.72%
Return on equity 2.51% 71.76% 9.28%
Return on assets 0.90% 19.24% 2.88%
Return on invested capital 3.19% 27.00% 5.16%

Growth

Metric BLDR LII Building Products & Equipment median
Revenue growth (TTM) (9.38%) (2.11%) 3.11%
EPS growth (last fiscal year) (57.06%) 1.11% —
Revenue growth, 5-year CAGR 12.16% 7.41% 5.37%
Net income growth, 5-year CAGR 6.78% 17.73% 0.00%

Health

Metric BLDR LII Building Products & Equipment median
Debt to equity 1.15 0.90 0.43
Current ratio 1.79 1.57 1.82
Net debt to EBITDA 3.09 0.98 0.98

Dividend

Metric BLDR LII Building Products & Equipment median
Dividend yield — 0.96% 1.20%
Payout ratio 0.00 0.28 0.04

Size

Metric BLDR LII Building Products & Equipment median
Market cap 6.30b 12.71b 1.18b

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