Lennox International (LII) and Its Rivals Head to Head Survey

Lennox International (NYSE: LII) is one of 4 publicly-traded companies in the “Refrigeration & heating equipment” industry, but how does it weigh in compared to its competitors? We will compare Lennox International to similar companies based on the strength of its valuation, earnings, risk, profitability, dividends, analyst recommendations and institutional ownership.

Earnings and Valuation

This table compares Lennox International and its competitors gross revenue, earnings per share and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Lennox International $3.88 billion $359.00 million 27.24
Lennox International Competitors $1.09 billion $95.97 million 40.05

Lennox International has higher revenue and earnings than its competitors. Lennox International is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Insider & Institutional Ownership

68.2% of Lennox International shares are held by institutional investors. Comparatively, 51.0% of shares of all “Refrigeration & heating equipment” companies are held by institutional investors. 3.9% of Lennox International shares are held by insiders. Comparatively, 13.1% of shares of all “Refrigeration & heating equipment” companies are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Lennox International and its competitors, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Lennox International 2 9 3 0 2.07
Lennox International Competitors 43 124 93 4 2.22

Lennox International presently has a consensus target price of $229.17, suggesting a potential downside of 10.69%. As a group, “Refrigeration & heating equipment” companies have a potential downside of 19.53%. Given Lennox International’s higher probable upside, equities research analysts plainly believe Lennox International is more favorable than its competitors.

Profitability

This table compares Lennox International and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Lennox International 9.25% -297.46% 19.52%
Lennox International Competitors 5.39% -94.40% 10.36%

Dividends

Lennox International pays an annual dividend of $2.56 per share and has a dividend yield of 1.0%. Lennox International pays out 27.2% of its earnings in the form of a dividend. As a group, “Refrigeration & heating equipment” companies pay a dividend yield of 1.0% and pay out 28.2% of their earnings in the form of a dividend. Lennox International has increased its dividend for 7 consecutive years. Lennox International is clearly a better dividend stock than its competitors, given its higher yield and lower payout ratio.

Volatility and Risk

Lennox International has a beta of 0.98, suggesting that its stock price is 2% less volatile than the S&P 500. Comparatively, Lennox International’s competitors have a beta of 1.54, suggesting that their average stock price is 54% more volatile than the S&P 500.

Summary

Lennox International beats its competitors on 8 of the 15 factors compared.

About Lennox International

Lennox International Inc., through its subsidiaries, provides climate control solutions in North America, Europe, Russia, Turkey, the Middle East, and internationally. It designs, manufactures, and markets a range of products for the heating, ventilation, air conditioning, and refrigeration markets. The company operates in three segments: Residential Heating & Cooling, Commercial Heating & Cooling, and Refrigeration. The Residential Heating & Cooling segment provides furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment and accessories, comfort control products, and replacement parts and supplies for residential replacement and new construction markets. The Commercial Heating & Cooling segment offers rooftop units, split system/air handler combinations, small package units, chillers, and fan coils for commercial buildings, shopping malls, other retail and entertainment buildings, institutional, and other field-engineered applications; and variable refrigerant flow commercial products. This segment also engages in the installation, service, and maintenance of commercial heating, ventilation, and air conditioning products. The Refrigeration segment offers condensing units, unit coolers, fluid coolers, air cooled condensers, air handlers, display cases, and refrigeration rack systems that helps in preserving food and other perishables in supermarkets, convenience stores, restaurants, warehouses, and distribution centers, as well as for data centers, machine tooling, and other cooling applications; and compressor racks and industrial process chillers. The company sells its products and services through direct sales, distributors, and company-owned parts and supplies stores. Lennox International Inc. was founded in 1895 and is headquartered in Richardson, Texas.

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