Lennox International, Inc. (LII) vs Masco Corporation (MAS)

Lennox International, Inc. and Masco Corporation are both Building Products & Equipment companies. Masco Corporation is the larger, with a market value of $14.3B against $12.4B — 1.2× the size. Lennox International, Inc. trades at the lower P/E: 16.1× against 16.8×. Masco Corporation grew revenue faster over the last twelve months: −0.56% against −2.11%. Lennox International, Inc. has the higher net margin (14.9% vs 11.6%) and the lower return on invested capital (27.0% vs 32.4%). Both pay a dividend; Masco Corporation yields more (1.74% vs 1.49%). Across the 22 metrics below, Masco Corporation leads on 13 and Lennox International, Inc. on 9.

Valuation

Metric LII MAS Building Products & Equipment median
P/E 16.11 16.75 23.15
P/S 2.34 1.90 2.02
P/B 9.57 n/m 2.81
Price to free cash flow 16.76 12.72 16.84
EV/EBITDA 11.62 12.85 12.85
EV/Sales 2.55 2.26 2.04
Earnings yield 6.21% 5.97% 2.76%
Free cash flow yield 5.97% 7.86% 4.23%

Profitability

Metric LII MAS Building Products & Equipment median
Gross margin 33.33% 36.96% 29.19%
Operating margin 19.67% 17.56% 6.99%
Net margin 14.87% 11.60% 4.05%
Free cash flow margin 13.97% 14.96% 7.60%
Return on equity 71.76% 5,893.33% 9.28%
Return on assets 19.24% 16.54% 2.88%
Return on invested capital 27.00% 32.43% 5.16%

Growth

Metric LII MAS Building Products & Equipment median
Revenue growth (TTM) (2.11%) (0.56%) 3.11%
EPS growth (last fiscal year) 1.11% 2.66% (34.13%)
Revenue growth, 5-year CAGR 7.41% 1.02% 5.37%
Net income growth, 5-year CAGR 17.73% (7.79%) 0.00%

Health

Metric LII MAS Building Products & Equipment median
Debt to equity 0.90 (27.50) 0.43
Current ratio 1.57 1.86 1.82
Net debt to EBITDA 0.98 1.65 0.98

Dividend

Metric LII MAS Building Products & Equipment median
Dividend yield 1.49% 1.74% 1.43%
Payout ratio 0.24 0.29 0.29

Size

Metric LII MAS Building Products & Equipment median
Market cap 12.39b 14.31b 1.17b

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