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

Lennox International, Inc. and Masco Corporation are both Building Products & Equipment companies. Lennox International, Inc. and Masco Corporation are of similar size ($13.3B and $12.7B). Masco Corporation trades at the lower P/E: 15.8× 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 (1.60% vs 0.96%). Across the 22 metrics below, Masco Corporation leads on 15 and Lennox International, Inc. on 7.

Valuation

Metric LII MAS Building Products & Equipment median
P/E 16.83 15.83 24.54
P/S 2.45 1.80 2.00
P/B 10.00 n/m 3.02
Price to free cash flow 17.51 12.02 18.49
EV/EBITDA 12.09 12.26 12.63
EV/Sales 2.66 2.15 2.14
Earnings yield 5.94% 6.32% 2.74%
Free cash flow yield 5.71% 8.32% 3.58%

Profitability

Metric LII MAS Building Products & Equipment median
Gross margin 33.33% 36.96% 29.19%
Operating margin 19.67% 17.56% 6.84%
Net margin 14.87% 11.60% 4.05%
Free cash flow margin 13.97% 14.96% 8.72%
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% —
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 0.96% 1.60% 1.20%
Payout ratio 0.28 0.32 0.04

Size

Metric LII MAS Building Products & Equipment median
Market cap 12.71b 13.27b 1.18b

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