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 $12.7B against $9.7B — 1.3× the size. Lennox International, Inc. trades at the lower P/E: 16.8× against 22.8×. Advanced Drainage Systems, Inc. grew revenue faster over the last twelve months: 10.4% against −2.11%. Lennox International, Inc. has the higher net margin (14.9% vs 14.0%) and the higher return on invested capital (27.0% vs 12.3%). Both pay a dividend; Lennox International, Inc. yields more (0.96% vs 0.35%). Across the 23 metrics below, Lennox International, Inc. leads on 15 and Advanced Drainage Systems, Inc. on 8.

Valuation

Metric LII WMS Building Products & Equipment median
P/E 16.83 22.84 24.54
P/S 2.45 3.16 2.00
P/B 10.00 5.60 3.02
Price to free cash flow 17.51 18.49 18.49
EV/EBITDA 12.09 13.08 12.63
EV/Sales 2.66 3.65 2.14
Earnings yield 5.94% 4.38% 2.74%
Free cash flow yield 5.71% 5.41% 3.58%

Profitability

Metric LII WMS Building Products & Equipment median
Gross margin 33.33% 38.65% 29.19%
Operating margin 19.67% 20.74% 6.84%
Net margin 14.87% 14.00% 4.05%
Free cash flow margin 13.97% 17.10% 8.72%
Return on equity 71.76% 25.71% 9.28%
Return on assets 19.24% 10.71% 2.88%
Return on invested capital 27.00% 12.34% 5.16%

Growth

Metric LII WMS Building Products & Equipment median
Revenue growth (TTM) (2.11%) 10.37% 3.11%
EPS growth (last fiscal year) 1.11% (5.56%) —
Revenue growth, 5-year CAGR 7.41% 9.00% 5.37%
Net income growth, 5-year CAGR 17.73% 18.13% 0.00%

Health

Metric LII WMS Building Products & Equipment median
Debt to equity 0.90 0.95 0.43
Current ratio 1.57 2.12 1.82
Net debt to EBITDA 0.98 1.80 0.98

Dividend

Metric LII WMS Building Products & Equipment median
Dividend yield 0.96% 0.35% 1.20%
Payout ratio 0.28 0.08 0.04

Size

Metric LII WMS Building Products & Equipment median
Market cap 12.71b 9.72b 1.18b

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