AME vs. LII: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AME and LII, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
AME’s market capitalization of 42.53 billion USD is substantially larger than LII’s 21.44 billion USD, indicating a significant difference in their market valuations.
With betas of 1.11 for AME and 1.15 for LII, both stocks show similar sensitivity to overall market movements.
| Symbol | AME | LII |
|---|---|---|
| Company Name | AMETEK, Inc. | Lennox International Inc. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Industrial - Machinery | Construction |
| CEO | David A. Zapico | Alok Maskara |
| Price | 184.19 USD | 604.22 USD |
| Market Cap | 42.53 billion USD | 21.44 billion USD |
| Beta | 1.11 | 1.15 |
| Exchange | NYSE | NYSE |
| IPO Date | July 19, 1984 | July 29, 1999 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AME 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.
Profitability
Return on Equity
AME
14.75%
Industrial - Machinery Industry
- Max
- 36.51%
- Q3
- 18.65%
- Median
- 12.08%
- Q1
- 4.75%
- Min
- -15.57%
AME’s Return on Equity of 14.75% is on par with the norm for the Industrial - Machinery 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.
Return on Invested Capital
AME
11.22%
Industrial - Machinery Industry
- Max
- 22.35%
- Q3
- 12.64%
- Median
- 9.33%
- Q1
- 5.32%
- Min
- -5.42%
AME’s Return on Invested Capital of 11.22% is in line with the norm for the Industrial - Machinery 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.
Net Profit Margin
AME
20.43%
Industrial - Machinery Industry
- Max
- 28.85%
- Q3
- 15.25%
- Median
- 10.02%
- Q1
- 5.33%
- Min
- -8.75%
A Net Profit Margin of 20.43% places AME in the upper quartile for the Industrial - Machinery industry, signifying strong profitability and more effective cost management than most of its peers.
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.
Operating Profit Margin
AME
26.20%
Industrial - Machinery Industry
- Max
- 28.19%
- Q3
- 19.04%
- Median
- 14.62%
- Q1
- 8.13%
- Min
- -5.76%
An Operating Profit Margin of 26.20% places AME in the upper quartile for the Industrial - Machinery industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
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.
Profitability at a Glance
| Symbol | AME | LII |
|---|---|---|
| Return on Equity (TTM) | 14.75% | 105.85% |
| Return on Assets (TTM) | 9.52% | 23.24% |
| Return on Invested Capital (TTM) | 11.22% | 32.58% |
| Net Profit Margin (TTM) | 20.43% | 14.96% |
| Operating Profit Margin (TTM) | 26.20% | 19.07% |
| Gross Profit Margin (TTM) | 36.18% | 32.80% |
Financial Strength
Current Ratio
AME
1.41
Industrial - Machinery Industry
- Max
- 4.18
- Q3
- 2.75
- Median
- 2.07
- Q1
- 1.46
- Min
- 0.46
AME’s Current Ratio of 1.41 falls into the lower quartile for the Industrial - Machinery industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.
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.
Debt-to-Equity Ratio
AME
0.19
Industrial - Machinery Industry
- Max
- 1.46
- Q3
- 0.73
- Median
- 0.48
- Q1
- 0.17
- Min
- 0.00
AME’s Debt-to-Equity Ratio of 0.19 is typical for the Industrial - Machinery industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
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.
Interest Coverage Ratio
AME
23.38
Industrial - Machinery Industry
- Max
- 28.91
- Q3
- 14.99
- Median
- 9.11
- Q1
- 3.95
- Min
- -11.30
AME’s Interest Coverage Ratio of 23.38 is in the upper quartile for the Industrial - Machinery industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
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.
Financial Strength at a Glance
| Symbol | AME | LII |
|---|---|---|
| Current Ratio (TTM) | 1.41 | 1.43 |
| Quick Ratio (TTM) | 0.86 | 0.74 |
| Debt-to-Equity Ratio (TTM) | 0.19 | 1.75 |
| Debt-to-Asset Ratio (TTM) | 0.13 | 0.43 |
| Net Debt-to-EBITDA Ratio (TTM) | 0.73 | 1.19 |
| Interest Coverage Ratio (TTM) | 23.38 | 30.91 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AME and LII. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AME
0.64%
Industrial - Machinery Industry
- Max
- 4.40%
- Q3
- 1.47%
- Median
- 0.74%
- Q1
- 0.00%
- Min
- 0.00%
AME’s Dividend Yield of 0.64% is consistent with its peers in the Industrial - Machinery industry, providing a dividend return that is standard for its sector.
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.
Dividend Payout Ratio
AME
18.74%
Industrial - Machinery Industry
- Max
- 78.48%
- Q3
- 36.22%
- Median
- 20.24%
- Q1
- 0.00%
- Min
- 0.00%
AME’s Dividend Payout Ratio of 18.74% is within the typical range for the Industrial - Machinery industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
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.
Dividend at a Glance
| Symbol | AME | LII |
|---|---|---|
| Dividend Yield (TTM) | 0.64% | 0.79% |
| Dividend Payout Ratio (TTM) | 18.74% | 20.19% |
Valuation
Price-to-Earnings Ratio
AME
29.98
Industrial - Machinery Industry
- Max
- 47.62
- Q3
- 34.41
- Median
- 27.36
- Q1
- 21.62
- Min
- 10.96
AME’s P/E Ratio of 29.98 is within the middle range for the Industrial - Machinery 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.
Forward P/E to Growth Ratio
AME
4.01
Industrial - Machinery Industry
- Max
- 6.15
- Q3
- 3.53
- Median
- 2.82
- Q1
- 1.71
- Min
- 0.09
The Forward PEG Ratio is often not a primary valuation metric in the Industrial - Machinery 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.
Price-to-Sales Ratio
AME
6.13
Industrial - Machinery Industry
- Max
- 8.37
- Q3
- 4.59
- Median
- 3.34
- Q1
- 1.83
- Min
- 0.32
AME’s P/S Ratio of 6.13 is in the upper echelon for the Industrial - Machinery 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.
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.
Price-to-Book Ratio
AME
4.26
Industrial - Machinery Industry
- Max
- 7.49
- Q3
- 5.01
- Median
- 3.41
- Q1
- 2.45
- Min
- 0.01
AME’s P/B Ratio of 4.26 is within the conventional range for the Industrial - Machinery 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.
Valuation at a Glance
| Symbol | AME | LII |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 29.98 | 26.72 |
| Forward PEG Ratio (TTM) | 4.01 | 2.69 |
| Price-to-Sales Ratio (P/S, TTM) | 6.13 | 4.00 |
| Price-to-Book Ratio (P/B, TTM) | 4.26 | 25.16 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | 24.82 | 27.73 |
| EV-to-EBITDA (TTM) | 21.00 | 21.29 |
| EV-to-Sales (TTM) | 6.35 | 4.23 |