Builders FirstSource Inc (BLDR)vsLennox International Inc (LII)
BLDR
Builders FirstSource Inc
$74.97
-1.02%
INDUSTRIALS · Cap: $8.36B
LII
Lennox International Inc
$508.43
-1.86%
INDUSTRIALS · Cap: $17.82B
Smart Verdict
WallStSmart Research — data-driven comparison
Builders FirstSource Inc generates 182% more annual revenue ($14.82B vs $5.26B). LII leads profitability with a 15.1% profit margin vs 2.0%. LII appears more attractively valued with a PEG of 1.48. LII earns a higher WallStSmart Score of 58/100 (C).
BLDR
Hold43
out of 100
Grade: D
LII
Buy58
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-42.0%
Fair Value
$54.78
Current Price
$74.97
$20.19 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 65 in profit
Safe zone — low bankruptcy risk
Areas to Watch
Expensive relative to growth rate
Moderate valuation
ROE of 7.3% — below average capital efficiency
2.0% margin — thin
Trading at 14.6x book value
Elevated debt levels
Weak financial health signals
Earnings declined 7.7%
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. Profitability is solid with margins at 15.1% and operating margin at 14.3%. PEG of 1.48 suggests the stock is reasonably priced for its growth.
Bear Case : BLDR
The primary concerns for BLDR are PEG Ratio, P/E Ratio, Return on Equity. Thin 2.0% margins leave little buffer for downturns.
Bear Case : LII
The primary concerns for LII are Price/Book, Debt/Equity, Piotroski F-Score. Debt-to-equity of 1.61 is elevated, increasing financial risk.
Key Dynamics to Monitor
BLDR profiles as a value stock while LII is a mature play — different risk/reward profiles.
BLDR carries more volatility with a beta of 1.45 — expect wider price swings.
LII is growing revenue faster at 5.8% — sustainability is the question.
BLDR generates stronger free cash flow (41M), providing more financial flexibility.
Bottom Line
LII scores higher overall (58/100 vs 43/100), backed by strong 15.1% margins. 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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