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 $16.2B against $11.9B — 1.4× the size. Lennox International, Inc. trades at the lower P/E: 16.2× against 18.1×. Lennox International, Inc. grew revenue faster over the last twelve months: 1.92% against 0.95%. Lennox International, Inc. has the higher net margin (13.8% vs 12.1%) and the lower return on invested capital (26.3% vs 35.2%). Both pay a dividend; Masco Corporation yields more (1.90% vs 1.52%). Across the 22 metrics below, Lennox International, Inc. leads on 15 and Masco Corporation on 7.

Valuation

Metric LII MAS Building Products & Equipment median
P/E 16.17 18.13 23.33
P/S 2.21 2.14 2.09
P/B 9.13 n/m 2.85
Price to free cash flow 14.35 15.53 18.42
EV/EBITDA 11.38 13.86 13.29
EV/Sales 2.41 2.48 2.28
Earnings yield 6.19% 5.52% 3.04%
Free cash flow yield 6.97% 6.44% 4.26%

Profitability

Metric LII MAS Building Products & Equipment median
Gross margin 32.62% 37.55% 31.88%
Operating margin 18.84% 17.92% 7.18%
Net margin 13.76% 12.05% 4.11%
Free cash flow margin 15.38% 13.78% 6.41%
Return on equity 62.82% (8,034.78%) 5.95%
Return on assets 18.26% 17.35% 3.90%
Return on invested capital 26.31% 35.17% 5.54%

Growth

Metric LII MAS Building Products & Equipment median
Revenue growth (TTM) 1.92% 0.95% 6.27%
EPS growth (last fiscal year) 1.11% 2.66% (28.29%)
Revenue growth, 5-year CAGR 7.41% 1.02% 4.81%
Net income growth, 5-year CAGR 17.73% (7.79%) 0.00%

Health

Metric LII MAS Building Products & Equipment median
Debt to equity 0.89 (16.81) 0.55
Current ratio 1.21 1.83 1.83
Net debt to EBITDA 0.98 1.65 1.45

Dividend

Metric LII MAS Building Products & Equipment median
Dividend yield 1.52% 1.90% 1.37%
Payout ratio 0.25 0.34 0.28

Size

Metric LII MAS Building Products & Equipment median
Market cap 11.93b 16.16b 3.22b

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