WallStSmart

Lennox International Inc (LII)vsLatham Group Inc (SWIM)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lennox International Inc generates 852% more annual revenue ($5.20B vs $545.91M). LII leads profitability with a 15.5% profit margin vs 2.0%. LII trades at a lower P/E of 20.9x. LII earns a higher WallStSmart Score of 56/100 (C).

LII

Buy

56

out of 100

Grade: C

Growth: 2.7Profit: 9.0Value: 7.3Quality: 6.3
Piotroski: 3/9Altman Z: 4.22

SWIM

Buy

50

out of 100

Grade: C-

Growth: 6.0Profit: 3.5Value: 3.0Quality: 5.0
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LIISignificantly Overvalued (-259.6%)

Margin of Safety

-259.6%

Fair Value

$155.04

Current Price

$481.68

$326.64 premium

UndervaluedFair: $155.04Overvalued
SWIMSignificantly Overvalued (-57.7%)

Margin of Safety

-57.7%

Fair Value

$4.21

Current Price

$5.62

$1.41 premium

UndervaluedFair: $4.21Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LII2 strengths · Avg: 10.0/10
Return on EquityProfitability
75.8%10/10

Every $100 of equity generates 76 in profit

Altman Z-ScoreHealth
4.2210/10

Safe zone — low bankruptcy risk

SWIM2 strengths · Avg: 8.0/10
Price/BookValuation
1.6x8/10

Reasonable price relative to book value

EPS GrowthGrowth
39.2%8/10

Earnings expanding 39.2% YoY

Areas to Watch

LII4 concerns · Avg: 2.8/10
Price/BookValuation
14.4x4/10

Trading at 14.4x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

Revenue GrowthGrowth
-11.2%2/10

Revenue declined 11.2%

EPS GrowthGrowth
-17.9%2/10

Earnings declined 17.9%

SWIM4 concerns · Avg: 2.8/10
Market CapQuality
$670.24M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
2.8%3/10

ROE of 2.8% — below average capital efficiency

Profit MarginProfitability
2.0%3/10

2.0% margin — thin

P/E RatioValuation
63.8x2/10

Premium valuation, high expectations priced in

Comparative Analysis Report

WallStSmart Research

Bull Case : LII

The strongest argument for LII centers on Return on Equity, Altman Z-Score. Profitability is solid with margins at 15.5% and operating margin at 19.8%. PEG of 1.37 suggests the stock is reasonably priced for its growth.

Bull Case : SWIM

The strongest argument for SWIM centers on Price/Book, EPS Growth. Revenue growth of 14.5% demonstrates continued momentum.

Bear Case : LII

The primary concerns for LII are Price/Book, Piotroski F-Score, Revenue Growth.

Bear Case : SWIM

The primary concerns for SWIM are Market Cap, Return on Equity, Profit Margin. A P/E of 63.8x leaves little room for execution misses. Thin 2.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

LII profiles as a declining stock while SWIM is a value play — different risk/reward profiles.

SWIM carries more volatility with a beta of 1.70 — expect wider price swings.

SWIM is growing revenue faster at 14.5% — sustainability is the question.

LII generates stronger free cash flow (377M), providing more financial flexibility.

Bottom Line

LII scores higher overall (56/100 vs 50/100), backed by strong 15.5% margins. 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.

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.

Latham Group Inc

INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA

Latham Group, Inc. designs, manufactures and markets residential inground swimming pools. The company is headquartered in Latham, New York.

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