Carrier Global Corporation (CARR) vs Lennox International, Inc. (LII)

Carrier Global Corporation and Lennox International, Inc. are both Building Products & Equipment companies. Carrier Global Corporation is the larger, with a market value of $45.3B against $12.7B — 3.6× the size. Lennox International, Inc. trades at the lower P/E: 16.8× against 38.9×. Carrier Global Corporation grew revenue faster over the last twelve months: −1.58% against −2.11%. Lennox International, Inc. has the higher net margin (14.9% vs 5.52%) and the higher return on invested capital (27.0% vs 4.47%). Both pay a dividend; Carrier Global Corporation yields more (1.30% vs 0.96%). Across the 23 metrics below, Lennox International, Inc. leads on 17 and Carrier Global Corporation on 6.

Valuation

Metric CARR LII Building Products & Equipment median
P/E 38.88 16.83 24.54
P/S 2.11 2.45 2.00
P/B 3.47 10.00 3.02
Price to free cash flow 24.21 17.51 18.49
EV/EBITDA 19.05 12.09 12.63
EV/Sales 2.59 2.66 2.14
Earnings yield 2.57% 5.94% 2.74%
Free cash flow yield 4.13% 5.71% 3.58%

Profitability

Metric CARR LII Building Products & Equipment median
Gross margin 24.34% 33.33% 29.19%
Operating margin 7.80% 19.67% 6.84%
Net margin 5.52% 14.87% 4.05%
Free cash flow margin 8.72% 13.97% 8.72%
Return on equity 8.57% 71.76% 9.28%
Return on assets 3.22% 19.24% 2.88%
Return on invested capital 4.47% 27.00% 5.16%

Growth

Metric CARR LII Building Products & Equipment median
Revenue growth (TTM) (1.58%) (2.11%) 3.11%
EPS growth (last fiscal year) (72.03%) 1.11% —
Revenue growth, 5-year CAGR 4.49% 7.41% 5.37%
Net income growth, 5-year CAGR (5.62%) 17.73% 0.00%

Health

Metric CARR LII Building Products & Equipment median
Debt to equity 0.89 0.90 0.43
Current ratio 1.02 1.57 1.82
Net debt to EBITDA 2.98 0.98 0.98

Dividend

Metric CARR LII Building Products & Equipment median
Dividend yield 1.30% 0.96% 1.20%
Payout ratio 0.28 0.28 0.04

Size

Metric CARR LII Building Products & Equipment median
Market cap 45.33b 12.71b 1.18b

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