Lennox International Inc (LII)vsWaters Corporation (WAT)
LII
Lennox International Inc
$508.43
-1.86%
INDUSTRIALS · Cap: $17.82B
WAT
Waters Corporation
$365.36
-2.95%
HEALTHCARE · Cap: $34.91B
Smart Verdict
WallStSmart Research — data-driven comparison
Lennox International Inc generates 39% more annual revenue ($5.26B vs $3.77B). LII leads profitability with a 15.1% profit margin vs 11.9%. LII appears more attractively valued with a PEG of 1.48. LII earns a higher WallStSmart Score of 58/100 (C).
LII
Buy58
out of 100
Grade: C
WAT
Buy50
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for LII.
Margin of Safety
-84.6%
Fair Value
$178.29
Current Price
$365.36
$187.07 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 65 in profit
Safe zone — low bankruptcy risk
Revenue surging 91.4% year-over-year
Safe zone — low bankruptcy risk
Areas to Watch
Trading at 14.6x book value
Elevated debt levels
Weak financial health signals
Earnings declined 7.7%
Expensive relative to growth rate
Trading at 8.5x book value
ROE of 2.9% — below average capital efficiency
Operating margin of 2.8%
Comparative Analysis Report
WallStSmart ResearchBull 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.
Bull Case : WAT
The strongest argument for WAT centers on Revenue Growth, Altman Z-Score. Revenue growth of 91.4% demonstrates continued momentum.
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.
Bear Case : WAT
The primary concerns for WAT are PEG Ratio, Price/Book, Return on Equity. A P/E of 45.2x leaves little room for execution misses.
Key Dynamics to Monitor
LII profiles as a mature stock while WAT is a growth play — different risk/reward profiles.
WAT carries more volatility with a beta of 1.20 — expect wider price swings.
WAT is growing revenue faster at 91.4% — sustainability is the question.
LII generates stronger free cash flow (-39M), providing more financial flexibility.
Bottom Line
LII scores higher overall (58/100 vs 50/100), backed by strong 15.1% 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.
Waters Corporation
HEALTHCARE · DIAGNOSTICS & RESEARCH · USA
Waters Corporation is a publicly traded Analytical Laboratory instrument and software company headquartered in Milford, Massachusetts.
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