WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Lennox International Inc generates 186% more annual revenue ($5.30B vs $1.86B). LII leads profitability with a 14.9% profit margin vs -13.9%. NX appears more attractively valued with a PEG of 0.73. LII earns a higher WallStSmart Score of 60/100 (C+).

LII

Buy

60

out of 100

Grade: C+

Growth: 4.0Profit: 8.5Value: 5.7Quality: 6.0
Piotroski: 3/9Altman Z: 4.22

NX

Hold

47

out of 100

Grade: D+

Growth: 4.7Profit: 3.5Value: 6.0Quality: 5.5
Piotroski: 4/9Altman Z: 1.27

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LII3 strengths · Avg: 9.3/10
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

Operating MarginProfitability
22.9%8/10

Strong operational efficiency at 22.9%

NX2 strengths · Avg: 9.0/10
Price/BookValuation
1.4x10/10

Reasonable price relative to book value

PEG RatioValuation
0.738/10

Growing faster than its price suggests

Areas to Watch

LII4 concerns · Avg: 3.8/10
Price/BookValuation
11.5x4/10

Trading at 11.5x 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
2.2%4/10

2.2% revenue growth

Market CapQuality
$967.24M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
4.0%3/10

Operating margin of 4.0%

Debt/EquityHealth
1.223/10

Elevated debt levels

Comparative Analysis Report

WallStSmart Research

Bull Case : LII

The strongest argument for LII centers on Return on Equity, Altman Z-Score, Operating Margin. PEG of 1.25 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 0.73 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, Operating Margin.

Key Dynamics to Monitor

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

LII carries more volatility with a beta of 1.16 — 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.

Bottom Line

LII scores higher overall (60/100 vs 47/100). 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 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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