Lennox International Inc (LII)vsAdvanced Drainage Systems Inc (WMS)
LII
Lennox International Inc
$477.21
+1.99%
INDUSTRIALS · Cap: $16.41B
WMS
Advanced Drainage Systems Inc
$137.86
+4.29%
INDUSTRIALS · Cap: $10.30B
Smart Verdict
WallStSmart Research — data-driven comparison
Lennox International Inc generates 74% more annual revenue ($5.20B vs $2.99B). WMS leads profitability with a 15.8% profit margin vs 15.5%. WMS appears more attractively valued with a PEG of 1.12. WMS earns a higher WallStSmart Score of 66/100 (B-).
LII
Buy56
out of 100
Grade: C
WMS
Strong Buy66
out of 100
Grade: B-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-259.8%
Fair Value
$154.97
Current Price
$477.21
$322.24 premium
Margin of Safety
+3.4%
Fair Value
$179.34
Current Price
$137.86
$41.48 discount
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 76 in profit
Safe zone — low bankruptcy risk
Revenue surging 40.0% year-over-year
Every $100 of equity generates 28 in profit
Strong operational efficiency at 21.0%
Areas to Watch
Trading at 14.3x book value
Weak financial health signals
Revenue declined 11.2%
Earnings declined 17.9%
No major concerns identified
Comparative Analysis Report
WallStSmart ResearchBull 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 1.34 suggests the stock is reasonably priced for its growth.
Bull Case : WMS
The strongest argument for WMS centers on Revenue Growth, Return on Equity, Operating Margin. Profitability is solid with margins at 15.8% and operating margin at 21.0%. Revenue growth of 40.0% demonstrates continued momentum.
Bear Case : LII
The primary concerns for LII are Price/Book, Piotroski F-Score, Revenue Growth.
Bear Case : WMS
No major red flags identified for WMS, but monitor valuation.
Key Dynamics to Monitor
LII profiles as a declining stock while WMS is a growth play — different risk/reward profiles.
WMS carries more volatility with a beta of 1.30 — expect wider price swings.
WMS is growing revenue faster at 40.0% — sustainability is the question.
LII generates stronger free cash flow (377M), providing more financial flexibility.
Bottom Line
WMS scores higher overall (66/100 vs 56/100), backed by strong 15.8% margins and 40.0% revenue growth. 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.
Advanced Drainage Systems Inc
INDUSTRIALS · BUILDING PRODUCTS & EQUIPMENT · USA
Advanced Drainage Systems, Inc. designs, manufactures and markets thermoplastic corrugated pipe and related water management products and drainage solutions for use in the underground construction and infrastructure market in the United States, Canada, Mexico and internationally. The company is headquartered in Hilliard, Ohio.
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