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 $11.9B against $7.1B — 1.7× the size. Lennox International, Inc. trades at the lower P/E: 16.2× against 176×. Lennox International, Inc. grew revenue faster over the last twelve months: 1.92% against −8.25%. Lennox International, Inc. has the higher net margin (13.8% vs 0.28%) and the higher return on invested capital (26.3% vs 2.21%). Across the 22 metrics below, Lennox International, Inc. leads on 17 and Builders FirstSource, Inc. on 5.

Valuation

Metric BLDR LII Building Products & Equipment median
P/E 176.44 16.17 23.33
P/S 0.49 2.21 2.09
P/B 1.73 9.13 2.85
Price to free cash flow 27.13 14.35 18.42
EV/EBITDA 12.84 11.38 13.29
EV/Sales 0.81 2.41 2.28
Earnings yield 0.57% 6.19% 3.04%
Free cash flow yield 3.69% 6.97% 4.26%

Profitability

Metric BLDR LII Building Products & Equipment median
Gross margin 28.48% 32.62% 31.88%
Operating margin 2.13% 18.84% 7.18%
Net margin 0.28% 13.76% 4.11%
Free cash flow margin 1.81% 15.38% 6.41%
Return on equity 0.97% 62.82% 5.95%
Return on assets 0.36% 18.26% 3.90%
Return on invested capital 2.21% 26.31% 5.54%

Growth

Metric BLDR LII Building Products & Equipment median
Revenue growth (TTM) (8.25%) 1.92% 6.27%
EPS growth (last fiscal year) (57.06%) 1.11% (28.29%)
Revenue growth, 5-year CAGR 12.16% 7.41% 4.81%
Net income growth, 5-year CAGR 6.78% 17.73% 0.00%

Health

Metric BLDR LII Building Products & Equipment median
Debt to equity 1.13 0.89 0.55
Current ratio 1.85 1.21 1.83
Net debt to EBITDA 3.09 0.98 1.45

Dividend

Metric BLDR LII Building Products & Equipment median
Dividend yield — 1.52% 1.37%
Payout ratio — 0.25 0.28

Size

Metric BLDR LII Building Products & Equipment median
Market cap 7.05b 11.93b 3.22b

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