WallStSmart

Lennox International Inc (LII)vsTrex Company Inc (TREX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lennox International Inc generates 342% more annual revenue ($5.20B vs $1.17B). TREX leads profitability with a 16.2% profit margin vs 15.5%. TREX appears more attractively valued with a PEG of 1.00. 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

TREX

Buy

51

out of 100

Grade: C-

Growth: 2.7Profit: 7.0Value: 7.3Quality: 5.8
Piotroski: 2/9Altman Z: 4.24
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
TREXSignificantly Overvalued (-266.0%)

Margin of Safety

-266.0%

Fair Value

$12.04

Current Price

$37.30

$25.26 premium

UndervaluedFair: $12.04Overvalued

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

TREX2 strengths · Avg: 9.0/10
Altman Z-ScoreHealth
4.2410/10

Safe zone — low bankruptcy risk

PEG RatioValuation
1.008/10

Growing faster than its price suggests

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%

TREX4 concerns · Avg: 2.5/10
Operating MarginProfitability
2.2%3/10

Operating margin of 2.2%

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Revenue GrowthGrowth
-3.9%2/10

Revenue declined 3.9%

EPS GrowthGrowth
-89.4%2/10

Earnings declined 89.4%

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 : TREX

The strongest argument for TREX centers on Altman Z-Score, PEG Ratio. Profitability is solid with margins at 16.2% and operating margin at 2.2%. PEG of 1.00 suggests the stock is reasonably priced for its growth.

Bear Case : LII

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

Bear Case : TREX

The primary concerns for TREX are Operating Margin, Piotroski F-Score, Revenue Growth.

Key Dynamics to Monitor

TREX carries more volatility with a beta of 1.60 — expect wider price swings.

TREX is growing revenue faster at -3.9% — sustainability is the question.

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

Monitor BUILDING PRODUCTS & EQUIPMENT industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LII scores higher overall (56/100 vs 51/100), 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.

Trex Company Inc

INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA

Trex Company, Inc. manufactures and distributes wood-plastic composite products and related accessories primarily for residential deck and railing applications in the United States. The company is headquartered in Winchester, Virginia.

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