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 $96.8B against $12.7B — 7.6× the size. Lennox International, Inc. trades at the lower P/E: 16.8× against 34.5×. Trane Technologies plc grew revenue faster over the last twelve months: 7.03% against −2.11%. Lennox International, Inc. has the higher net margin (14.9% vs 13.3%) and the higher return on invested capital (27.0% vs 20.9%). Both pay a dividend; Trane Technologies plc yields more (1.17% vs 0.96%). Across the 23 metrics below, Lennox International, Inc. leads on 14 and Trane Technologies plc on 9.

Valuation

Metric LII TT Building Products & Equipment median
P/E 16.83 34.48 24.54
P/S 2.45 4.53 2.00
P/B 10.00 11.64 3.02
Price to free cash flow 17.51 28.20 18.49
EV/EBITDA 12.09 23.75 12.63
EV/Sales 2.66 4.68 2.14
Earnings yield 5.94% 2.90% 2.74%
Free cash flow yield 5.71% 3.55% 3.58%

Profitability

Metric LII TT Building Products & Equipment median
Gross margin 33.33% 35.39% 29.19%
Operating margin 19.67% 17.94% 6.84%
Net margin 14.87% 13.28% 4.05%
Free cash flow margin 13.97% 16.06% 8.72%
Return on equity 71.76% 35.74% 9.28%
Return on assets 19.24% 13.13% 2.88%
Return on invested capital 27.00% 20.85% 5.16%

Growth

Metric LII TT Building Products & Equipment median
Revenue growth (TTM) (2.11%) 7.03% 3.11%
EPS growth (last fiscal year) 1.11% 15.48% —
Revenue growth, 5-year CAGR 7.41% 11.35% 5.37%
Net income growth, 5-year CAGR 17.73% 27.84% 0.00%

Health

Metric LII TT Building Products & Equipment median
Debt to equity 0.90 0.53 0.43
Current ratio 1.57 1.07 1.82
Net debt to EBITDA 0.98 0.66 0.98

Dividend

Metric LII TT Building Products & Equipment median
Dividend yield 0.96% 1.17% 1.20%
Payout ratio 0.28 0.35 0.04

Size

Metric LII TT Building Products & Equipment median
Market cap 12.71b 96.79b 1.18b

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