WallStSmart

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

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Smart Verdict

WallStSmart Research — data-driven comparison

Lennox International Inc generates 185% more annual revenue ($5.30B vs $1.86B). LII leads profitability with a 14.9% profit margin vs 2.4%. NX appears more attractively valued with a PEG of 0.71. LII earns a higher WallStSmart Score of 62/100 (C+).

LII

Buy

62

out of 100

Grade: C+

Growth: 4.0Profit: 8.5Value: 7.0Quality: 6.0
Piotroski: 3/9Altman Z: 4.22

NX

Buy

53

out of 100

Grade: C-

Growth: 4.7Profit: 5.0Value: 6.3Quality: 5.5
Piotroski: 4/9Altman Z: 1.27

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LII5 strengths · Avg: 8.8/10
Return on EquityProfitability
59.7%10/10

Every $100 of equity generates 60 in profit

Altman Z-ScoreHealth
4.2210/10

Safe zone — low bankruptcy risk

PEG RatioValuation
0.918/10

Growing faster than its price suggests

P/E RatioValuation
16.1x8/10

Attractively priced relative to earnings

Operating MarginProfitability
22.9%8/10

Strong operational efficiency at 22.9%

NX2 strengths · Avg: 9.0/10
Price/BookValuation
1.2x10/10

Reasonable price relative to book value

PEG RatioValuation
0.718/10

Growing faster than its price suggests

Areas to Watch

LII4 concerns · Avg: 3.8/10
Price/BookValuation
10.0x4/10

Trading at 10.0x book value

Revenue GrowthGrowth
3.0%4/10

3.0% revenue growth

EPS GrowthGrowth
0.1%4/10

0.1% earnings growth

Debt/EquityHealth
1.563/10

Elevated debt levels

NX4 concerns · Avg: 3.3/10
Revenue GrowthGrowth
1.3%4/10

1.3% revenue growth

Market CapQuality
$941.27M3/10

Smaller company, higher risk/reward

Return on EquityProfitability
6.1%3/10

ROE of 6.1% — below average capital efficiency

Profit MarginProfitability
2.4%3/10

2.4% margin — thin

Comparative Analysis Report

WallStSmart Research

Bull Case : LII

The strongest argument for LII centers on Return on Equity, Altman Z-Score, PEG Ratio. PEG of 0.91 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 0.71 suggests the stock is reasonably priced for its growth.

Bear Case : LII

The primary concerns for LII are Price/Book, Revenue Growth, EPS Growth. Debt-to-equity of 1.56 is elevated, increasing financial risk.

Bear Case : NX

The primary concerns for NX are Revenue Growth, Market Cap, Return on Equity. Thin 2.4% margins leave little buffer for downturns.

Key Dynamics to Monitor

LII carries more volatility with a beta of 1.18 — expect wider price swings.

LII is growing revenue faster at 3.0% — sustainability is the question.

LII generates stronger free cash flow (136M), providing more financial flexibility.

Monitor BUILDING PRODUCTS & EQUIPMENT industry trends, competitive dynamics, and regulatory changes.

Bottom Line

LII scores higher overall (62/100 vs 53/100). 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.

Quanex Building Products

INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA

Quanex Building Products Corporation (NX) is a leading manufacturer specializing in engineered materials and components tailored for the building and construction industry, with a strong commitment to sustainability and innovation. The company's comprehensive product portfolio includes energy-efficient window and door systems, along with advanced engineered wood solutions, catering to both residential and commercial markets. Leveraging proprietary technologies and operational excellence, Quanex is strategically positioned to meet the increasing demand for eco-friendly building solutions, thereby enhancing its competitive edge and driving long-term value for investors.

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