WallStSmart

Lennox International Inc (LII)vsVertex Pharmaceuticals Inc (VRTX)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Vertex Pharmaceuticals Inc generates 128% more annual revenue ($12.00B vs $5.26B). VRTX leads profitability with a 32.9% profit margin vs 15.1%. LII appears more attractively valued with a PEG of 1.52. VRTX earns a higher WallStSmart Score of 66/100 (B-).

LII

Buy

56

out of 100

Grade: C

Growth: 4.0Profit: 8.5Value: 4.0Quality: 6.3
Piotroski: 3/9Altman Z: 4.22

VRTX

Strong Buy

66

out of 100

Grade: B-

Growth: 8.0Profit: 9.0Value: 6.7Quality: 8.0
Piotroski: 3/9Altman Z: 3.62
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

LIISignificantly Overvalued (-50.6%)

Margin of Safety

-50.6%

Fair Value

$370.16

Current Price

$541.37

$171.21 premium

UndervaluedFair: $370.16Overvalued
VRTXUndervalued (+56.0%)

Margin of Safety

+56.0%

Fair Value

$973.13

Current Price

$427.65

$545.48 discount

UndervaluedFair: $973.13Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

LII2 strengths · Avg: 10.0/10
Return on EquityProfitability
76.8%10/10

Every $100 of equity generates 77 in profit

Altman Z-ScoreHealth
4.2210/10

Safe zone — low bankruptcy risk

VRTX6 strengths · Avg: 9.5/10
Profit MarginProfitability
32.9%10/10

Keeps 33 of every $100 in revenue as profit

Operating MarginProfitability
39.6%10/10

Strong operational efficiency at 39.6%

Altman Z-ScoreHealth
3.6210/10

Safe zone — low bankruptcy risk

Market CapQuality
$108.71B9/10

Large-cap with strong market position

Return on EquityProfitability
22.5%9/10

Every $100 of equity generates 23 in profit

Debt/EquityHealth
0.219/10

Conservative balance sheet, low leverage

Areas to Watch

LII4 concerns · Avg: 3.3/10
PEG RatioValuation
1.524/10

Expensive relative to growth rate

Price/BookValuation
16.2x4/10

Trading at 16.2x book value

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

EPS GrowthGrowth
-0.6%2/10

Earnings declined 0.6%

VRTX3 concerns · Avg: 3.7/10
PEG RatioValuation
2.084/10

Expensive relative to growth rate

P/E RatioValuation
27.9x4/10

Moderate valuation

Piotroski F-ScoreQuality
3/93/10

Weak financial health signals

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 15.1% and operating margin at 14.4%.

Bull Case : VRTX

The strongest argument for VRTX centers on Profit Margin, Operating Margin, Altman Z-Score. Profitability is solid with margins at 32.9% and operating margin at 39.6%.

Bear Case : LII

The primary concerns for LII are PEG Ratio, Price/Book, Piotroski F-Score.

Bear Case : VRTX

The primary concerns for VRTX are PEG Ratio, P/E Ratio, Piotroski F-Score.

Key Dynamics to Monitor

LII carries more volatility with a beta of 1.21 — expect wider price swings.

VRTX is growing revenue faster at 9.5% — sustainability is the question.

VRTX generates stronger free cash flow (349M), providing more financial flexibility.

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

Bottom Line

VRTX scores higher overall (66/100 vs 56/100), backed by strong 32.9% margins. Both earn "Strong 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.

Vertex Pharmaceuticals Inc

HEALTHCARE · BIOTECHNOLOGY · USA

Vertex Pharmaceuticals, Inc. is an American biopharmaceutical company based in Boston, Massachusetts.

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