Lennox International, Inc. (LII) vs Advanced Drainage Systems, Inc. (WMS)

Lennox International, Inc. and Advanced Drainage Systems, Inc. are both Building Products & Equipment companies. Lennox International, Inc. is the larger, with a market value of $11.9B against $9.3B — 1.3× the size. Lennox International, Inc. trades at the lower P/E: 16.2× against 23.3×. Advanced Drainage Systems, Inc. grew revenue faster over the last twelve months: 9.18% against 1.92%. Lennox International, Inc. has the higher net margin (13.8% vs 12.4%) and the higher return on invested capital (26.3% vs 11.9%). Both pay a dividend; Lennox International, Inc. yields more (1.52% vs 0.62%). Across the 23 metrics below, Lennox International, Inc. leads on 16 and Advanced Drainage Systems, Inc. on 7.

Valuation

Metric LII WMS Building Products & Equipment median
P/E 16.17 23.33 23.33
P/S 2.21 2.85 2.09
P/B 9.13 5.22 2.85
Price to free cash flow 14.35 16.89 18.42
EV/EBITDA 11.38 12.37 13.29
EV/Sales 2.41 3.34 2.28
Earnings yield 6.19% 4.29% 3.04%
Free cash flow yield 6.97% 5.92% 4.26%

Profitability

Metric LII WMS Building Products & Equipment median
Gross margin 32.62% 38.36% 31.88%
Operating margin 18.84% 19.62% 7.18%
Net margin 13.76% 12.44% 4.11%
Free cash flow margin 15.38% 0.00% 6.41%
Return on equity 62.82% 22.36% 5.95%
Return on assets 18.26% 9.49% 3.90%
Return on invested capital 26.31% 11.90% 5.54%

Growth

Metric LII WMS Building Products & Equipment median
Revenue growth (TTM) 1.92% 9.18% 6.27%
EPS growth (last fiscal year) 1.11% (5.56%) (28.29%)
Revenue growth, 5-year CAGR 7.41% 9.00% 4.81%
Net income growth, 5-year CAGR 17.73% 18.13% 0.00%

Health

Metric LII WMS Building Products & Equipment median
Debt to equity 0.89 0.97 0.55
Current ratio 1.21 2.13 1.83
Net debt to EBITDA 0.98 1.80 1.45

Dividend

Metric LII WMS Building Products & Equipment median
Dividend yield 1.52% 0.62% 1.37%
Payout ratio 0.25 0.14 0.28

Size

Metric LII WMS Building Products & Equipment median
Market cap 11.93b 9.25b 3.22b

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