WallStSmart

Lennox International Inc (LII)vsWarner Bros Discovery Inc (WBD)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Warner Bros Discovery Inc generates 609% more annual revenue ($37.30B vs $5.26B). LII leads profitability with a 15.1% profit margin vs 1.9%. LII appears more attractively valued with a PEG of 1.52. LII earns a higher WallStSmart Score of 56/100 (C).

LII

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 8.5Value: 4.0Quality: 6.3
Piotroski: 3/9Altman Z: 4.22

WBD

Buy

51

out of 100

Grade: C-

Growth: 5.3Profit: 4.5Value: 4.7Quality: 4.3
Piotroski: 4/9Altman Z: 0.59
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LIISignificantly Overvalued (-50.6%)

Margin of Safety

-50.6%

Fair Value

$370.16

Current Price

$541.37

$171.21 premium

UndervaluedFair: $370.16Overvalued
WBDUndervalued (+60.6%)

Margin of Safety

+60.6%

Fair Value

$71.09

Current Price

$27.20

$43.89 discount

UndervaluedFair: $71.09Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LII2 strengths · Avg: 10.0/10
Return on EquityProfitability
76.8%10/10

Every $100 of equity generates 77 in profit

Altman Z-ScoreHealth
4.2210/10

Safe zone — low bankruptcy risk

WBD4 strengths · Avg: 8.8/10
EPS GrowthGrowth
226.7%10/10

Earnings expanding 226.7% YoY

Market CapQuality
$67.61B9/10

Large-cap with strong market position

Price/BookValuation
1.9x8/10

Reasonable price relative to book value

Free Cash FlowQuality
$1.38B8/10

Generating 1.4B in free cash flow

Areas to Watch

LII4 concerns · Avg: 3.3/10
PEG RatioValuation
1.524/10

Expensive relative to growth rate

Price/BookValuation
16.2x4/10

Trading at 16.2x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-0.6%2/10

Earnings declined 0.6%

WBD4 concerns · Avg: 2.5/10
Return on EquityProfitability
2.1%3/10

ROE of 2.1% — below average capital efficiency

Profit MarginProfitability
1.9%3/10

1.9% margin — thin

PEG RatioValuation
216.922/10

Expensive relative to growth rate

P/E RatioValuation
93.0x2/10

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 15.1% and operating margin at 14.4%.

Bull Case : WBD

The strongest argument for WBD centers on EPS Growth, Market Cap, Price/Book.

Bear Case : LII

The primary concerns for LII are PEG Ratio, Price/Book, Piotroski F-Score.

Bear Case : WBD

The primary concerns for WBD are Return on Equity, Profit Margin, PEG Ratio. A P/E of 93.0x leaves little room for execution misses. Thin 1.9% margins leave little buffer for downturns.

Key Dynamics to Monitor

LII profiles as a mature stock while WBD is a value play — different risk/reward profiles.

WBD carries more volatility with a beta of 1.64 — expect wider price swings.

LII is growing revenue faster at 5.8% — sustainability is the question.

WBD generates stronger free cash flow (1.4B), providing more financial flexibility.

Bottom Line

LII scores higher overall (56/100 vs 51/100), backed by strong 15.1% margins. WBD offers better value entry with a 60.6% margin of safety. 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.

Warner Bros Discovery Inc

COMMUNICATION SERVICES · ENTERTAINMENT · USA

Warner Bros. The company is headquartered in New York, New York.

Want to dig deeper into these stocks?