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CAT vs. LII: Caterpillar vs. Lennox Stock Comparison

How do Caterpillar (CAT) and Lennox (LII) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Caterpillar (CAT) and Lennox (LII) both fall under the Capital Goods industry group, but CAT is classified in Machinery while LII is classified in Building Products.

Company profile comparison for Caterpillar (CAT) and Lennox (LII)
Profile ItemCATLII
NameCaterpillar Inc.Lennox International Inc.
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryMachineryBuilding Products
GICS Sub-IndustryConstruction Machinery & Heavy Transportation EquipmentBuilding Products
Market Capitalization255.63 billion USD11.70 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJanuary 2, 1962July 29, 1999
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

CAT
LII
GSPC
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Caterpillar (CAT) vs. Lennox (LII), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Caterpillar (CAT) and Lennox (LII). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Caterpillar (CAT) and Lennox (LII). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Caterpillar (CAT) and Lennox (LII)
MetricCATLII
Total Return (1Y)6.75%-27.83%
Total Return (3Y, Annualized)38.34%-2.32%
Total Return (5Y, Annualized)25.28%3.79%

Risk Profile

Drawdown History

CAT
LII
GSPC
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Caterpillar (CAT) vs. Lennox (LII), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Caterpillar (CAT) and Lennox (LII). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Caterpillar (CAT) and Lennox (LII)
MetricCATLII
Volatility (1Y, Annualized)41.33%41.59%
Beta (5Y)1.651.18
Max Drawdown (5Y)-47.79%-49.95%
Avg. Volume (3M)2.82M563.34K

Risk-Adjusted Performance

Risk-Return Positioning

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CAT and LII are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Caterpillar (CAT) and Lennox (LII)
MetricCATLII
Sharpe Ratio (1Y)0.06-0.77
Sortino Ratio (1Y)0.08-0.96

Profitability

ROE (TTM)

Both Caterpillar (CAT) at 56.14% and Lennox (LII) at 62.82% turn shareholders’ equity into profit at rates above their industry benchmark ranges for ROE. That is a strong capital-efficiency signal, though leverage and the equity base still matter.

CAT

Capital Goods industry group

56.14%

CAT
56.14%
Max
40.55%
Q3
19.29%
Median
12.12%
Q1
4.08%
Min
-17.12%

LII

Capital Goods industry group

62.82%

LII
62.82%
Max
40.55%
Q3
19.29%
Median
12.12%
Q1
4.08%
Min
-17.12%
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Caterpillar (CAT) vs. Lennox (LII): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

For every dollar of sales, both Caterpillar (CAT) at 15.21% and Lennox (LII) at 13.76% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

CAT

Capital Goods industry group

15.21%

Max
27.47%
CAT
15.21%
Q3
12.10%
Median
6.30%
Q1
1.40%
Min
-12.89%

LII

Capital Goods industry group

13.76%

Max
27.47%
LII
13.76%
Q3
12.10%
Median
6.30%
Q1
1.40%
Min
-12.89%
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Caterpillar (CAT) vs. Lennox (LII): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Both Caterpillar (CAT) at 20.19% and Lennox (LII) at 20.57% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

CAT

Capital Goods industry group

20.19%

Max
36.60%
CAT
20.19%
Q3
18.33%
Median
11.12%
Q1
5.14%
Min
-12.63%

LII

Capital Goods industry group

20.57%

Max
36.60%
LII
20.57%
Q3
18.33%
Median
11.12%
Q1
5.14%
Min
-12.63%
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Caterpillar (CAT) vs. Lennox (LII): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Caterpillar (CAT) and Lennox (LII)
MetricCATLII
ROE (TTM)56.14%62.82%
ROA (TTM)9.09%15.93%
Net Margin (TTM)15.21%13.76%
Operating Margin (TTM)20.19%20.57%
Gross Margin (TTM)29.54%32.62%

Growth

Revenue Growth

Caterpillar (CAT) at 4.29% is around its peer norm for revenue growth, while Lennox (LII) at -2.73% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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Caterpillar (CAT) vs. Lennox (LII): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Caterpillar (CAT) at -14.69% and Lennox (LII) at 1.11% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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Caterpillar (CAT) vs. Lennox (LII): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Caterpillar (CAT) and Lennox (LII)
MetricCATLII
Revenue Growth (YoY)4.29%-2.73%
Revenue Growth (3Y CAGR)4.38%3.26%
EPS Growth (YoY)-14.69%1.11%
EPS Growth (3Y CAGR)14.17%17.97%

Financial Strength

Current Ratio (MRQ)

Both Caterpillar (CAT) at 1.42 and Lennox (LII) at 1.21 run current ratio in the tighter-liquidity quartile of industry peers, leaving thinner cushions against current liabilities than typical competitors.

CAT

Capital Goods industry group

1.42

Max
5.22
Q3
2.95
Median
2.08
Q1
1.43
CAT
1.42
Min
0.36

LII

Capital Goods industry group

1.21

Max
5.22
Q3
2.95
Median
2.08
Q1
1.43
LII
1.21
Min
0.36
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Caterpillar (CAT) vs. Lennox (LII): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Both Caterpillar (CAT) at 2.10 and Lennox (LII) at 1.58 lean more heavily on debt funding than most peers, landing in the higher-leverage quartile of their industries.

CAT

Capital Goods industry group

2.10

Max
2.33
CAT
2.10
Q3
1.12
Median
0.60
Q1
0.29
Min
0.00

LII

Capital Goods industry group

1.58

Max
2.33
LII
1.58
Q3
1.12
Median
0.60
Q1
0.29
Min
0.00
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Caterpillar (CAT) vs. Lennox (LII): A comparison of their debt-to-equity ratio against the Capital Goods industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Caterpillar (CAT) and Lennox (LII)
MetricCATLII
Current Ratio (MRQ)1.421.21
Debt / Equity (MRQ)2.101.58
Net Debt / EBITDA2.251.73

Dividends

Dividend Yield (TTM)

Lennox (LII) at 1.53% delivers top-quartile income for its industry, while Caterpillar (CAT) at 1.13% pays a more typical yield — both are credible income propositions, LII the richer one.

CAT

Capital Goods industry group

1.13%

Max
2.66%
Q3
1.14%
CAT
1.13%
Median
0.24%
Q1
0.00%
Min
0.00%

LII

Capital Goods industry group

1.53%

Max
2.66%
LII
1.53%
Q3
1.14%
Median
0.24%
Q1
0.00%
Min
0.00%
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Caterpillar (CAT) vs. Lennox (LII): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Both Caterpillar (CAT) at 24.18% and Lennox (LII) at 24.68% keep payout ratio within their industries’ typical mid-ranges — dividend policies that share earnings without consuming too much of them.

CAT

Capital Goods industry group

24.18%

Max
67.39%
Q3
28.02%
CAT
24.18%
Median
6.86%
Q1
0.00%
Min
0.00%

LII

Capital Goods industry group

24.68%

Max
67.39%
Q3
28.02%
LII
24.68%
Median
6.86%
Q1
0.00%
Min
0.00%
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Caterpillar (CAT) vs. Lennox (LII): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Caterpillar (CAT) and Lennox (LII)
MetricCATLII
Dividend Yield (TTM)1.13%1.53%
Dividend Payout Ratio (TTM)24.18%24.68%

Valuation

P/E Ratio (TTM)

Lennox (LII) at 15.47 sits in the cheaper P/E ratio quartile, while Caterpillar (CAT) at 21.92 is closer to its industry’s usual earnings multiple — a discount for LII, though growth and earnings durability still matter.

CAT

Capital Goods industry group

21.92

Max
59.38
Q3
35.92
Median
25.41
CAT
21.92
Q1
19.47
Min
3.03

LII

Capital Goods industry group

15.47

Max
59.38
Q3
35.92
Median
25.41
Q1
19.47
LII
15.47
Min
3.03
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Caterpillar (CAT) vs. Lennox (LII): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Caterpillar (CAT) at 3.29 and Lennox (LII) at 2.15 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

CAT

Capital Goods industry group

3.29

Max
7.54
Q3
3.76
CAT
3.29
Median
2.15
Q1
1.03
Min
0.03

LII

Capital Goods industry group

2.15

Max
7.54
Q3
3.76
Median
2.15
LII
2.15
Q1
1.03
Min
0.03
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Caterpillar (CAT) vs. Lennox (LII): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

Both look rich against book: Lennox (LII) at 8.88 sits in the upper P/B ratio quartile, and Caterpillar (CAT) at 11.90 prices even higher, above its industry range.

CAT

Capital Goods industry group

11.90

CAT
11.90
Max
9.66
Q3
5.00
Median
3.12
Q1
1.81
Min
-1.08

LII

Capital Goods industry group

8.88

Max
9.66
LII
8.88
Q3
5.00
Median
3.12
Q1
1.81
Min
-1.08
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Caterpillar (CAT) vs. Lennox (LII): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Caterpillar (CAT) and Lennox (LII)
MetricCATLII
P/E Ratio (TTM)21.9215.47
P/S Ratio (TTM)3.292.15
P/B Ratio (MRQ)11.908.88
Free Cash Flow Yield (TTM)1.55%3.14%