Lennox International, Inc. (LII) vs Trane Technologies plc (TT)

Lennox International, Inc. and Trane Technologies plc are both Building Products & Equipment companies. Trane Technologies plc is the larger, with a market value of $85.9B against $11.9B — 7.2× the size. Lennox International, Inc. trades at the lower P/E: 16.2× against 27.8×. Trane Technologies plc grew revenue faster over the last twelve months: 10.3% against 1.92%. Lennox International, Inc. has the higher net margin (13.8% vs 13.6%) and the higher return on invested capital (26.3% vs 21.5%). Both pay a dividend; Lennox International, Inc. yields more (1.52% vs 1.04%). Across the 23 metrics below, Lennox International, Inc. leads on 15 and Trane Technologies plc on 8.

Valuation

Metric LII TT Building Products & Equipment median
P/E 16.17 27.83 23.33
P/S 2.21 3.73 2.09
P/B 9.13 9.49 2.85
Price to free cash flow 14.35 22.60 18.42
EV/EBITDA 11.38 19.63 13.29
EV/Sales 2.41 3.86 2.28
Earnings yield 6.19% 3.59% 3.04%
Free cash flow yield 6.97% 4.43% 4.26%

Profitability

Metric LII TT Building Products & Equipment median
Gross margin 32.62% 34.99% 31.88%
Operating margin 18.84% 17.92% 7.18%
Net margin 13.76% 13.56% 4.11%
Free cash flow margin 15.38% 16.52% 6.41%
Return on equity 62.82% 36.04% 5.95%
Return on assets 18.26% 13.92% 3.90%
Return on invested capital 26.31% 21.46% 5.54%

Growth

Metric LII TT Building Products & Equipment median
Revenue growth (TTM) 1.92% 10.33% 6.27%
EPS growth (last fiscal year) 1.11% 15.48% (28.29%)
Revenue growth, 5-year CAGR 7.41% 11.35% 4.81%
Net income growth, 5-year CAGR 17.73% 27.84% 0.00%

Health

Metric LII TT Building Products & Equipment median
Debt to equity 0.89 0.46 0.55
Current ratio 1.21 1.12 1.83
Net debt to EBITDA 0.98 0.66 1.45

Dividend

Metric LII TT Building Products & Equipment median
Dividend yield 1.52% 1.04% 1.37%
Payout ratio 0.25 0.29 0.28

Size

Metric LII TT Building Products & Equipment median
Market cap 11.93b 85.90b 3.22b

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