Lennox International Inc (LII)vsYum! Brands Inc (YUM)
LII
Lennox International Inc
$541.37
+3.67%
INDUSTRIALS · Cap: $18.32B
YUM
Yum! Brands Inc
$156.02
+1.38%
CONSUMER CYCLICAL · Cap: $43.78B
Smart Verdict
WallStSmart Research — data-driven comparison
Yum! Brands Inc generates 61% more annual revenue ($8.49B vs $5.26B). YUM leads profitability with a 20.5% profit margin vs 15.1%. LII appears more attractively valued with a PEG of 1.52. YUM earns a higher WallStSmart Score of 65/100 (C+).
LII
Buy56
out of 100
Grade: C
YUM
Buy65
out of 100
Grade: C+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-50.6%
Fair Value
$370.16
Current Price
$541.37
$171.21 premium
Margin of Safety
-77.2%
Fair Value
$89.76
Current Price
$156.02
$66.26 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Every $100 of equity generates 77 in profit
Safe zone — low bankruptcy risk
Strong operational efficiency at 31.0%
Earnings expanding 72.2% YoY
Keeps 21 of every $100 in revenue as profit
15.2% revenue growth
Areas to Watch
Expensive relative to growth rate
Trading at 16.2x book value
Weak financial health signals
Earnings declined 0.6%
Expensive relative to growth rate
Moderate valuation
ROE of 0.0% — below average capital efficiency
Weak financial health signals
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 15.1% and operating margin at 14.4%.
Bull Case : YUM
The strongest argument for YUM centers on Operating Margin, EPS Growth, Profit Margin. Profitability is solid with margins at 20.5% and operating margin at 31.0%. Revenue growth of 15.2% demonstrates continued momentum.
Bear Case : LII
The primary concerns for LII are PEG Ratio, Price/Book, Piotroski F-Score.
Bear Case : YUM
The primary concerns for YUM are PEG Ratio, P/E Ratio, Return on Equity.
Key Dynamics to Monitor
LII profiles as a mature stock while YUM is a growth play — different risk/reward profiles.
LII carries more volatility with a beta of 1.21 — expect wider price swings.
YUM is growing revenue faster at 15.2% — sustainability is the question.
YUM generates stronger free cash flow (341M), providing more financial flexibility.
Bottom Line
YUM scores higher overall (65/100 vs 56/100), backed by strong 20.5% margins and 15.2% revenue growth. 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.
Yum! Brands Inc
CONSUMER CYCLICAL · RESTAURANTS · USA
Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.
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