Builders FirstSource Inc (BLDR)vsLennox International Inc (LII)
BLDR
Builders FirstSource Inc
$60.37
+2.37%
INDUSTRIALS · Cap: $6.61B
LII
Lennox International Inc
$366.04
-1.77%
INDUSTRIALS · Cap: $13.31B
Smart Verdict
WallStSmart Research — data-driven comparison
Builders FirstSource Inc generates 173% more annual revenue ($14.45B vs $5.30B). LII leads profitability with a 14.9% profit margin vs 0.7%. LII appears more attractively valued with a PEG of 0.99. LII earns a higher WallStSmart Score of 62/100 (C+).
BLDR
Hold43
out of 100
Grade: D
LII
Buy62
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-14.5%
Fair Value
$53.63
Current Price
$60.37
$6.74 premium
Intrinsic value data unavailable for LII.
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Every $100 of equity generates 60 in profit
Safe zone — low bankruptcy risk
Growing faster than its price suggests
Attractively priced relative to earnings
Strong operational efficiency at 22.9%
Areas to Watch
Expensive relative to growth rate
ROE of 7.3% — below average capital efficiency
0.7% margin — thin
Operating margin of 3.3%
Trading at 9.8x book value
3.0% revenue growth
0.1% earnings growth
Elevated debt levels
Comparative Analysis Report
WallStSmart ResearchBull Case : BLDR
The strongest argument for BLDR centers on Price/Book.
Bull Case : LII
The strongest argument for LII centers on Return on Equity, Altman Z-Score, PEG Ratio. PEG of 0.99 suggests the stock is reasonably priced for its growth.
Bear Case : BLDR
The primary concerns for BLDR are PEG Ratio, Return on Equity, Profit Margin. A P/E of 66.7x leaves little room for execution misses. Thin 0.7% margins leave little buffer for downturns.
Bear Case : LII
The primary concerns for LII are Price/Book, Revenue Growth, EPS Growth. Debt-to-equity of 1.56 is elevated, increasing financial risk.
Key Dynamics to Monitor
BLDR carries more volatility with a beta of 1.41 — expect wider price swings.
LII is growing revenue faster at 3.0% — sustainability is the question.
LII generates stronger free cash flow (136M), providing more financial flexibility.
Monitor BUILDING PRODUCTS & EQUIPMENT industry trends, competitive dynamics, and regulatory changes.
Bottom Line
LII scores higher overall (62/100 vs 43/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Builders FirstSource Inc
INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA
Builders FirstSource, Inc., manufactures and supplies building materials, manufactured components, and construction services to professional home builders, subcontractors, remodelers, and consumers in the United States. The company is headquartered in Dallas, Texas.
Visit Website →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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