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ACM vs. LII: A Head-to-Head Stock Comparison

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Here’s a clear look at ACM and LII, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Overview

ACM’s market capitalization stands at 15.31 billion USD, while LII’s is 21.44 billion USD, indicating their market valuations are broadly comparable.

With betas of 0.97 for ACM and 1.15 for LII, both stocks show similar sensitivity to overall market movements.

SymbolACMLII
Company NameAecomLennox International Inc.
CountryUSUS
SectorIndustrialsIndustrials
IndustryEngineering & ConstructionConstruction
CEOW. Troy RuddAlok Maskara
Price115.75 USD604.22 USD
Market Cap15.31 billion USD21.44 billion USD
Beta0.971.15
ExchangeNYSENYSE
IPO DateMay 10, 2007July 29, 1999
ADRNoNo

Historical Performance

This chart compares the performance of ACM and LII by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.

Data is adjusted for dividends and splits.

ACM vs. LII: Growth of a $10,000 investment over the past one year.

Profitability

Return on Equity

ACM

27.52%

Engineering & Construction Industry

Max
39.77%
Q3
28.08%
Median
13.64%
Q1
7.13%
Min
-14.48%

ACM’s Return on Equity of 27.52% is on par with the norm for the Engineering & Construction industry, indicating its profitability relative to shareholder equity is typical for the sector.

LII

105.85%

Construction Industry

Max
40.76%
Q3
26.03%
Median
16.38%
Q1
5.66%
Min
-4.01%

LII’s Return on Equity of 105.85% is exceptionally high, placing it well beyond the typical range for the Construction industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

ACM vs. LII: A comparison of their ROE against their respective Engineering & Construction and Construction industry benchmarks.

Return on Invested Capital

ACM

6.55%

Engineering & Construction Industry

Max
22.01%
Q3
12.65%
Median
8.09%
Q1
4.79%
Min
-2.53%

ACM’s Return on Invested Capital of 6.55% is in line with the norm for the Engineering & Construction industry, reflecting a standard level of efficiency in generating profits from its capital base.

LII

32.58%

Construction Industry

Max
27.38%
Q3
15.45%
Median
9.91%
Q1
5.86%
Min
2.28%

LII’s Return on Invested Capital of 32.58% is exceptionally high, placing it well beyond the typical range for the Construction industry. This demonstrates an outstanding ability to deploy capital efficiently and create significant value.

ACM vs. LII: A comparison of their ROIC against their respective Engineering & Construction and Construction industry benchmarks.

Net Profit Margin

ACM

3.85%

Engineering & Construction Industry

Max
11.23%
Q3
6.47%
Median
3.96%
Q1
2.79%
Min
-2.45%

ACM’s Net Profit Margin of 3.85% is aligned with the median group of its peers in the Engineering & Construction industry. This indicates its ability to convert revenue into profit is typical for the sector.

LII

14.96%

Construction Industry

Max
24.94%
Q3
14.61%
Median
10.07%
Q1
2.23%
Min
-9.49%

A Net Profit Margin of 14.96% places LII in the upper quartile for the Construction industry, signifying strong profitability and more effective cost management than most of its peers.

ACM vs. LII: A comparison of their Net Profit Margin against their respective Engineering & Construction and Construction industry benchmarks.

Operating Profit Margin

ACM

5.98%

Engineering & Construction Industry

Max
13.74%
Q3
8.50%
Median
6.20%
Q1
4.58%
Min
0.34%

ACM’s Operating Profit Margin of 5.98% is around the midpoint for the Engineering & Construction industry, indicating that its efficiency in managing core business operations is typical for the sector.

LII

19.07%

Construction Industry

Max
24.04%
Q3
19.17%
Median
13.63%
Q1
7.69%
Min
-7.88%

LII’s Operating Profit Margin of 19.07% is around the midpoint for the Construction industry, indicating that its efficiency in managing core business operations is typical for the sector.

ACM vs. LII: A comparison of their Operating Margin against their respective Engineering & Construction and Construction industry benchmarks.

Profitability at a Glance

SymbolACMLII
Return on Equity (TTM)27.52%105.85%
Return on Assets (TTM)5.24%23.24%
Return on Invested Capital (TTM)6.55%32.58%
Net Profit Margin (TTM)3.85%14.96%
Operating Profit Margin (TTM)5.98%19.07%
Gross Profit Margin (TTM)7.09%32.80%

Financial Strength

Current Ratio

ACM

--

Engineering & Construction Industry

Max
2.02
Q3
1.66
Median
1.38
Q1
1.24
Min
0.94

Current Ratio data for ACM is currently unavailable.

LII

1.43

Construction Industry

Max
4.22
Q3
2.59
Median
1.84
Q1
1.44
Min
0.96

LII’s Current Ratio of 1.43 falls into the lower quartile for the Construction industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

ACM vs. LII: A comparison of their Current Ratio against their respective Engineering & Construction and Construction industry benchmarks.

Debt-to-Equity Ratio

ACM

1.32

Engineering & Construction Industry

Max
1.76
Q3
0.91
Median
0.67
Q1
0.28
Min
0.01

ACM’s leverage is in the upper quartile of the Engineering & Construction industry, with a Debt-to-Equity Ratio of 1.32. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

LII

1.75

Construction Industry

Max
1.75
Q3
1.15
Median
0.84
Q1
0.56
Min
0.05

LII’s leverage is in the upper quartile of the Construction industry, with a Debt-to-Equity Ratio of 1.75. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

ACM vs. LII: A comparison of their D/E Ratio against their respective Engineering & Construction and Construction industry benchmarks.

Interest Coverage Ratio

ACM

5.28

Engineering & Construction Industry

Max
20.20
Q3
11.91
Median
6.46
Q1
3.18
Min
-2.69

ACM’s Interest Coverage Ratio of 5.28 is positioned comfortably within the norm for the Engineering & Construction industry, indicating a standard and healthy capacity to cover its interest payments.

LII

30.91

Construction Industry

Max
30.91
Q3
15.60
Median
7.16
Q1
2.73
Min
-4.26

LII’s Interest Coverage Ratio of 30.91 is in the upper quartile for the Construction industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.

ACM vs. LII: A comparison of their Interest Coverage against their respective Engineering & Construction and Construction industry benchmarks.

Financial Strength at a Glance

SymbolACMLII
Current Ratio (TTM)--1.43
Quick Ratio (TTM)--0.74
Debt-to-Equity Ratio (TTM)1.321.75
Debt-to-Asset Ratio (TTM)0.260.43
Net Debt-to-EBITDA Ratio (TTM)1.231.19
Interest Coverage Ratio (TTM)5.2830.91

Growth

The following charts compare key year-over-year (YoY) growth metrics for ACM and LII. These metrics are based on the companies’ annual financial reports.

Revenue Growth

ACM vs. LII: A comparison of their annual year-over-year Revenue Growth.

Earnings Per Share (EPS) Growth

ACM vs. LII: A comparison of their annual year-over-year Earnings Per Share (EPS) Growth.

Free Cash Flow Growth

ACM vs. LII: A comparison of their annual year-over-year Free Cash Flow Growth.

Dividend

Dividend Yield

ACM

0.86%

Engineering & Construction Industry

Max
1.31%
Q3
0.40%
Median
0.00%
Q1
0.00%
Min
0.00%

With a Dividend Yield of 0.86%, ACM offers a more attractive income stream than most of its peers in the Engineering & Construction industry, signaling a strong commitment to shareholder returns.

LII

0.79%

Construction Industry

Max
2.43%
Q3
1.20%
Median
0.59%
Q1
0.00%
Min
0.00%

LII’s Dividend Yield of 0.79% is consistent with its peers in the Construction industry, providing a dividend return that is standard for its sector.

ACM vs. LII: A comparison of their Dividend Yield against their respective Engineering & Construction and Construction industry benchmarks.

Dividend Payout Ratio

ACM

20.16%

Engineering & Construction Industry

Max
32.30%
Q3
7.09%
Median
0.00%
Q1
0.00%
Min
0.00%

ACM’s Dividend Payout Ratio of 20.16% is in the upper quartile for the Engineering & Construction industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

LII

20.19%

Construction Industry

Max
84.31%
Q3
28.17%
Median
11.69%
Q1
0.00%
Min
0.00%

LII’s Dividend Payout Ratio of 20.19% is within the typical range for the Construction industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ACM vs. LII: A comparison of their Payout Ratio against their respective Engineering & Construction and Construction industry benchmarks.

Dividend at a Glance

SymbolACMLII
Dividend Yield (TTM)0.86%0.79%
Dividend Payout Ratio (TTM)20.16%20.19%

Valuation

Price-to-Earnings Ratio

ACM

24.84

Engineering & Construction Industry

Max
95.41
Q3
56.70
Median
32.28
Q1
22.94
Min
4.72

ACM’s P/E Ratio of 24.84 is within the middle range for the Engineering & Construction industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

LII

26.72

Construction Industry

Max
52.50
Q3
32.30
Median
22.66
Q1
14.68
Min
9.62

LII’s P/E Ratio of 26.72 is within the middle range for the Construction industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ACM vs. LII: A comparison of their P/E Ratio against their respective Engineering & Construction and Construction industry benchmarks.

Forward P/E to Growth Ratio

ACM

2.51

Engineering & Construction Industry

Max
4.99
Q3
3.64
Median
2.51
Q1
1.64
Min
0.03

The Forward PEG Ratio is often not a primary valuation metric in the Engineering & Construction industry.

LII

2.69

Construction Industry

Max
4.11
Q3
2.42
Median
1.60
Q1
1.15
Min
0.27

The Forward PEG Ratio is often not a primary valuation metric in the Construction industry.

ACM vs. LII: A comparison of their Forward PEG Ratio against their respective Engineering & Construction and Construction industry benchmarks.

Price-to-Sales Ratio

ACM

0.95

Engineering & Construction Industry

Max
3.34
Q3
2.05
Median
1.50
Q1
0.83
Min
0.44

ACM’s P/S Ratio of 0.95 aligns with the market consensus for the Engineering & Construction industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

LII

4.00

Construction Industry

Max
5.26
Q3
3.38
Median
1.63
Q1
0.99
Min
0.09

LII’s P/S Ratio of 4.00 is in the upper echelon for the Construction industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.

ACM vs. LII: A comparison of their P/S Ratio against their respective Engineering & Construction and Construction industry benchmarks.

Price-to-Book Ratio

ACM

6.71

Engineering & Construction Industry

Max
10.70
Q3
7.33
Median
4.69
Q1
2.53
Min
0.79

ACM’s P/B Ratio of 6.71 is within the conventional range for the Engineering & Construction industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

LII

25.16

Construction Industry

Max
12.88
Q3
6.91
Median
3.04
Q1
1.93
Min
0.71

At 25.16, LII’s P/B Ratio is at an extreme premium to the Construction industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

ACM vs. LII: A comparison of their P/B Ratio against their respective Engineering & Construction and Construction industry benchmarks.

Valuation at a Glance

SymbolACMLII
Price-to-Earnings Ratio (P/E, TTM)24.8426.72
Forward PEG Ratio (TTM)2.512.69
Price-to-Sales Ratio (P/S, TTM)0.954.00
Price-to-Book Ratio (P/B, TTM)6.7125.16
Price-to-Free Cash Flow Ratio (P/FCF, TTM)18.3127.73
EV-to-EBITDA (TTM)14.5121.29
EV-to-Sales (TTM)1.044.23