Lennox International, Inc. (LII) vs Owens Corning Inc (OC)

Lennox International, Inc. and Owens Corning Inc are both Building Products & Equipment companies. Lennox International, Inc. is the larger, with a market value of $12.4B against $9.0B — 1.4× the size. Owens Corning Inc has negative trailing earnings, so its P/E is not meaningful; Lennox International, Inc. trades at 16.1×. Lennox International, Inc. grew revenue faster over the last twelve months: −2.11% against −7.23%. Lennox International, Inc. has the higher net margin (14.9% vs −6.81%) and the higher return on invested capital (27.0% vs 0.36%). Both pay a dividend; Owens Corning Inc yields more (3.41% vs 1.49%). Across the 22 metrics below, Lennox International, Inc. leads on 14 and Owens Corning Inc on 8.

Valuation

Metric LII OC Building Products & Equipment median
P/E 16.11 n/m 23.15
P/S 2.34 0.92 2.02
P/B 9.57 2.38 2.81
Price to free cash flow 16.76 9.32 16.84
EV/EBITDA 11.62 7.19 12.85
EV/Sales 2.55 1.41 2.04
Earnings yield 6.21% (7.15%) 2.76%
Free cash flow yield 5.97% 10.73% 4.23%

Profitability

Metric LII OC Building Products & Equipment median
Gross margin 33.33% 25.98% 29.19%
Operating margin 19.67% 0.51% 6.99%
Net margin 14.87% (6.81%) 4.05%
Free cash flow margin 13.97% 9.87% 7.60%
Return on equity 71.76% (14.89%) 9.28%
Return on assets 19.24% (4.93%) 2.88%
Return on invested capital 27.00% 0.36% 5.16%

Growth

Metric LII OC Building Products & Equipment median
Revenue growth (TTM) (2.11%) (7.23%) 3.11%
EPS growth (last fiscal year) 1.11% (184.40%) (34.13%)
Revenue growth, 5-year CAGR 7.41% 7.45% 5.37%
Net income growth, 5-year CAGR 17.73% 0.00% 0.00%

Health

Metric LII OC Building Products & Equipment median
Debt to equity 0.90 1.34 0.43
Current ratio 1.57 1.16 1.82
Net debt to EBITDA 0.98 2.14 0.98

Dividend

Metric LII OC Building Products & Equipment median
Dividend yield 1.49% 3.41% 1.43%
Payout ratio 0.24 — 0.29

Size

Metric LII OC Building Products & Equipment median
Market cap 12.39b 8.99b 1.17b

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