WallStSmart

Armstrong World Industries Inc (AWI)vsLennox International Inc (LII)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lennox International Inc generates 221% more annual revenue ($5.20B vs $1.62B). AWI leads profitability with a 19.1% profit margin vs 15.5%. LII appears more attractively valued with a PEG of 1.37. LII earns a higher WallStSmart Score of 56/100 (C).

AWI

Buy

56

out of 100

Grade: C

Growth: 6.0Profit: 8.5Value: 7.3Quality: 7.3
Piotroski: 6/9

LII

Buy

56

out of 100

Grade: C

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

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

AWISignificantly Overvalued (-60.3%)

Margin of Safety

-60.3%

Fair Value

$125.35

Current Price

$167.18

$41.83 premium

UndervaluedFair: $125.35Overvalued
LIISignificantly Overvalued (-259.6%)

Margin of Safety

-259.6%

Fair Value

$155.04

Current Price

$481.68

$326.64 premium

UndervaluedFair: $155.04Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

AWI2 strengths · Avg: 9.5/10
Return on EquityProfitability
37.2%10/10

Every $100 of equity generates 37 in profit

Debt/EquityHealth
0.129/10

Conservative balance sheet, low leverage

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

Areas to Watch

AWI1 concerns · Avg: 4.0/10
PEG RatioValuation
2.024/10

Expensive relative to growth rate

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%

Comparative Analysis Report

WallStSmart Research

Bull Case : AWI

The strongest argument for AWI centers on Return on Equity, Debt/Equity. Profitability is solid with margins at 19.1% and operating margin at 17.4%.

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.

Bear Case : AWI

The primary concerns for AWI are PEG Ratio.

Bear Case : LII

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

Key Dynamics to Monitor

AWI profiles as a mature stock while LII is a declining play — different risk/reward profiles.

AWI carries more volatility with a beta of 1.33 — expect wider price swings.

AWI is growing revenue faster at 5.6% — sustainability is the question.

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

Bottom Line

AWI scores higher overall (56/100 vs 56/100), backed by strong 19.1% 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.

Armstrong World Industries Inc

INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA

Armstrong World Industries, Inc. designs, manufactures, and sells roofing systems primarily for use in the construction and renovation of residential and commercial buildings in the United States, Canada, and Latin America. The company is headquartered in Lancaster, Pennsylvania.

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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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