WallStSmart

Armstrong World Industries Inc (AWI)vsLennox International Inc (LII)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lennox International Inc generates 213% more annual revenue ($5.30B vs $1.70B). AWI leads profitability with a 18.6% profit margin vs 14.9%. LII appears more attractively valued with a PEG of 1.25. AWI earns a higher WallStSmart Score of 62/100 (C+).

AWI

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 8.5Value: 5.0Quality: 7.5
Piotroski: 7/9Altman Z: 3.51

LII

Buy

60

out of 100

Grade: C+

Growth: 4.0Profit: 8.5Value: 5.7Quality: 6.0
Piotroski: 3/9Altman Z: 4.22

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AWI3 strengths · Avg: 9.3/10
Return on EquityProfitability
34.3%10/10

Every $100 of equity generates 34 in profit

Altman Z-ScoreHealth
3.5110/10

Safe zone — low bankruptcy risk

Operating MarginProfitability
21.6%8/10

Strong operational efficiency at 21.6%

LII3 strengths · Avg: 9.3/10
Return on EquityProfitability
64.5%10/10

Every $100 of equity generates 65 in profit

Altman Z-ScoreHealth
4.2210/10

Safe zone — low bankruptcy risk

Operating MarginProfitability
22.9%8/10

Strong operational efficiency at 22.9%

Areas to Watch

AWI2 concerns · Avg: 4.0/10
PEG RatioValuation
2.024/10

Expensive relative to growth rate

Price/BookValuation
8.9x4/10

Trading at 8.9x book value

LII4 concerns · Avg: 3.8/10
Price/BookValuation
11.7x4/10

Trading at 11.7x book value

Revenue GrowthGrowth
3.0%4/10

3.0% revenue growth

EPS GrowthGrowth
0.1%4/10

0.1% earnings growth

Debt/EquityHealth
1.613/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : AWI

The strongest argument for AWI centers on Return on Equity, Altman Z-Score, Operating Margin. Profitability is solid with margins at 18.6% and operating margin at 21.6%. Revenue growth of 11.2% demonstrates continued momentum.

Bull Case : LII

The strongest argument for LII centers on Return on Equity, Altman Z-Score, Operating Margin. PEG of 1.25 suggests the stock is reasonably priced for its growth.

Bear Case : AWI

The primary concerns for AWI are PEG Ratio, Price/Book.

Bear Case : LII

The primary concerns for LII are Price/Book, Revenue Growth, EPS Growth. Debt-to-equity of 1.61 is elevated, increasing financial risk.

Key Dynamics to Monitor

AWI profiles as a mature stock while LII is a value play — different risk/reward profiles.

AWI carries more volatility with a beta of 1.17 — expect wider price swings.

AWI is growing revenue faster at 11.2% — sustainability is the question.

AWI generates stronger free cash flow (14M), providing more financial flexibility.

Bottom Line

AWI scores higher overall (62/100 vs 60/100), backed by strong 18.6% margins and 11.2% revenue growth. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Armstrong World Industries Inc

INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA

Armstrong World Industries, Inc. designs, manufactures, and sells roofing systems primarily for use in the construction and renovation of residential and commercial buildings in the United States, Canada, and Latin America. The company is headquartered in Lancaster, Pennsylvania.

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Lennox International Inc

INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA

Lennox International Inc. designs, manufactures and markets a range of products for the heating, ventilation, air conditioning and refrigeration markets in the United States, Canada and internationally. The company is headquartered in Richardson, Texas.

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