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 $12.7B against $9.5B — 1.3× the size. Owens Corning Inc has negative trailing earnings, so its P/E is not meaningful; Lennox International, Inc. trades at 16.8×. 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 (1.30% vs 0.96%). 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 16.83 n/m 24.54
P/S 2.45 1.01 2.00
P/B 10.00 2.61 3.02
Price to free cash flow 17.51 10.23 18.49
EV/EBITDA 12.09 7.65 12.63
EV/Sales 2.66 1.50 2.14
Earnings yield 5.94% (6.51%) 2.74%
Free cash flow yield 5.71% 9.77% 3.58%

Profitability

Metric LII OC Building Products & Equipment median
Gross margin 33.33% 25.98% 29.19%
Operating margin 19.67% 0.51% 6.84%
Net margin 14.87% (6.81%) 4.05%
Free cash flow margin 13.97% 9.87% 8.72%
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%) —
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 0.96% 1.30% 1.20%
Payout ratio 0.28 0.12 0.04

Size

Metric LII OC Building Products & Equipment median
Market cap 12.71b 9.54b 1.18b

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