Builders FirstSource Inc (BLDR)vsLennox International Inc (LII)
BLDR
Builders FirstSource Inc
$85.41
+1.75%
INDUSTRIALS · Cap: $9.45B
LII
Lennox International Inc
$481.68
+0.99%
INDUSTRIALS · Cap: $16.73B
Smart Verdict
WallStSmart Research — data-driven comparison
Builders FirstSource Inc generates 192% more annual revenue ($15.19B vs $5.20B). LII leads profitability with a 15.5% profit margin vs 2.9%. LII appears more attractively valued with a PEG of 1.37. LII earns a higher WallStSmart Score of 56/100 (C).
BLDR
Hold45
out of 100
Grade: D
LII
Buy56
out of 100
Grade: C
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-379.9%
Fair Value
$26.45
Current Price
$85.41
$58.96 premium
Margin of Safety
-259.6%
Fair Value
$155.04
Current Price
$481.68
$326.64 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Reasonable price relative to book value
Every $100 of equity generates 76 in profit
Safe zone — low bankruptcy risk
Areas to Watch
Expensive relative to growth rate
2.9% margin — thin
Operating margin of 1.8%
Elevated debt levels
Trading at 14.4x book value
Weak financial health signals
Revenue declined 11.2%
Earnings declined 17.9%
Comparative Analysis Report
WallStSmart ResearchBull Case : BLDR
The strongest argument for BLDR centers on Price/Book.
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 : BLDR
The primary concerns for BLDR are PEG Ratio, Profit Margin, Operating Margin. Thin 2.9% margins leave little buffer for downturns.
Bear Case : LII
The primary concerns for LII are Price/Book, Piotroski F-Score, Revenue Growth.
Key Dynamics to Monitor
BLDR profiles as a value stock while LII is a declining play — different risk/reward profiles.
BLDR carries more volatility with a beta of 1.56 — expect wider price swings.
LII is growing revenue faster at -11.2% — sustainability is the question.
LII generates stronger free cash flow (377M), providing more financial flexibility.
Bottom Line
LII scores higher overall (56/100 vs 45/100), backed by strong 15.5% margins. Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Builders FirstSource Inc
INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA
Builders FirstSource, Inc., manufactures and supplies building materials, manufactured components, and construction services to professional home builders, subcontractors, remodelers, and consumers in the United States. The company is headquartered in Dallas, Texas.
Visit Website →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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