WallStSmart

Lennox International Inc (LII)vsQuanex Building Products (NX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lennox International Inc generates 181% more annual revenue ($5.20B vs $1.85B). LII leads profitability with a 15.5% profit margin vs -13.0%. NX appears more attractively valued with a PEG of 0.56. 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

NX

Hold

47

out of 100

Grade: D+

Growth: 4.7Profit: 3.5Value: 6.7Quality: 5.0
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

Intrinsic value data unavailable for NX.

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

NX2 strengths · Avg: 9.0/10
Price/BookValuation
1.1x10/10

Reasonable price relative to book value

PEG RatioValuation
0.568/10

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%

NX4 concerns · Avg: 3.0/10
Revenue GrowthGrowth
2.3%4/10

2.3% revenue growth

Market CapQuality
$792.90M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
0.7%3/10

Operating margin of 0.7%

Return on EquityProfitability
-28.2%2/10

ROE of -28.2% — below average capital efficiency

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 : NX

The strongest argument for NX centers on Price/Book, PEG Ratio. PEG of 0.56 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 : NX

The primary concerns for NX are Revenue Growth, Market Cap, Operating Margin.

Key Dynamics to Monitor

LII profiles as a declining stock while NX is a turnaround play — different risk/reward profiles.

LII carries more volatility with a beta of 1.14 — expect wider price swings.

NX is growing revenue faster at 2.3% — sustainability is the question.

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

Bottom Line

LII scores higher overall (56/100 vs 47/100), 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.

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.

Quanex Building Products

INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA

Quanex Building Products Corporation (NX) is a leading manufacturer of advanced engineered materials and components tailored for the building and construction industry, recognized for its commitment to innovation and quality. The company's diverse portfolio includes energy-efficient window and door systems, as well as engineered wood products that cater to both residential and commercial markets, positioning it favorably amidst the growing demand for sustainable construction solutions. With a strong focus on operational excellence and a wealth of expertise in material science, Quanex leverages its patented technologies to deliver superior value and ensure a competitive advantage in an evolving industry landscape.

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