Seek Returns logo

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

Updated on

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

Company Profile

SymbolLIIROP
Company NameLennox International Inc.Roper Technologies, Inc.
CountryUnited StatesUnited States
GICS SectorIndustrialsInformation Technology
GICS IndustryBuilding ProductsSoftware
Market Capitalization20.69 billion USD58.17 billion USD
ExchangeNYSENasdaqGS
Listing DateJuly 29, 1999February 13, 1992
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of LII and ROP 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.

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

Historical Performance at a Glance

SymbolLIIROP
5-Day Price Return-1.68%2.96%
13-Week Price Return-2.55%-6.88%
26-Week Price Return-4.98%-5.74%
52-Week Price Return1.89%-1.70%
Month-to-Date Return-3.27%-1.80%
Year-to-Date Return-3.32%3.98%
10-Day Avg. Volume0.33M0.77M
3-Month Avg. Volume0.39M0.58M
3-Month Volatility30.56%14.57%
Beta1.141.03

Profitability

Return on Equity (TTM)

LII

99.44%

Building Products Industry

Max
48.58%
Q3
27.65%
Median
16.01%
Q1
8.81%
Min
-6.66%

LII’s Return on Equity of 99.44% is exceptionally high, placing it well beyond the typical range for the Building Products industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

ROP

8.08%

Software Industry

Max
59.01%
Q3
21.98%
Median
7.15%
Q1
-11.12%
Min
-51.24%

ROP’s Return on Equity of 8.08% is on par with the norm for the Software industry, indicating its profitability relative to shareholder equity is typical for the sector.

LII vs. ROP: A comparison of their Return on Equity (TTM) against their respective Building Products and Software industry benchmarks.

Net Profit Margin (TTM)

LII

15.41%

Building Products Industry

Max
26.11%
Q3
15.09%
Median
9.48%
Q1
5.16%
Min
-3.43%

A Net Profit Margin of 15.41% places LII in the upper quartile for the Building Products industry, signifying strong profitability and more effective cost management than most of its peers.

ROP

20.62%

Software Industry

Max
48.14%
Q3
18.23%
Median
5.60%
Q1
-9.22%
Min
-49.36%

A Net Profit Margin of 20.62% places ROP in the upper quartile for the Software industry, signifying strong profitability and more effective cost management than most of its peers.

LII vs. ROP: A comparison of their Net Profit Margin (TTM) against their respective Building Products and Software industry benchmarks.

Operating Profit Margin (TTM)

LII

19.52%

Building Products Industry

Max
26.67%
Q3
18.75%
Median
14.89%
Q1
8.70%
Min
-1.00%

An Operating Profit Margin of 19.52% places LII in the upper quartile for the Building Products industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

ROP

28.06%

Software Industry

Max
57.34%
Q3
20.60%
Median
7.84%
Q1
-8.72%
Min
-51.37%

An Operating Profit Margin of 28.06% places ROP in the upper quartile for the Software industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

LII vs. ROP: A comparison of their Operating Profit Margin (TTM) against their respective Building Products and Software industry benchmarks.

Profitability at a Glance

SymbolLIIROP
Return on Equity (TTM)99.44%8.08%
Return on Assets (TTM)24.03%4.83%
Net Profit Margin (TTM)15.41%20.62%
Operating Profit Margin (TTM)19.52%28.06%
Gross Profit Margin (TTM)33.13%68.87%

Financial Strength

Current Ratio (MRQ)

LII

1.41

Building Products Industry

Max
2.87
Q3
2.03
Median
1.60
Q1
1.32
Min
0.88

LII’s Current Ratio of 1.41 aligns with the median group of the Building Products industry, indicating that its short-term liquidity is in line with its sector peers.

ROP

0.46

Software Industry

Max
3.83
Q3
2.31
Median
1.45
Q1
1.03
Min
0.24

ROP’s Current Ratio of 0.46 falls into the lower quartile for the Software industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

LII vs. ROP: A comparison of their Current Ratio (MRQ) against their respective Building Products and Software industry benchmarks.

Debt-to-Equity Ratio (MRQ)

LII

1.31

Building Products Industry

Max
1.64
Q3
1.02
Median
0.66
Q1
0.32
Min
0.00

LII’s leverage is in the upper quartile of the Building Products industry, with a Debt-to-Equity Ratio of 1.31. While this approach can boost equity growth, it also exposes the company to greater financial vulnerability.

ROP

0.45

Software Industry

Max
2.14
Q3
0.90
Median
0.29
Q1
0.00
Min
0.00

ROP’s Debt-to-Equity Ratio of 0.45 is typical for the Software industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

LII vs. ROP: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Building Products and Software industry benchmarks.

Interest Coverage Ratio (TTM)

LII

26.81

Building Products Industry

Max
72.12
Q3
34.39
Median
15.31
Q1
6.06
Min
0.85

LII’s Interest Coverage Ratio of 26.81 is positioned comfortably within the norm for the Building Products industry, indicating a standard and healthy capacity to cover its interest payments.

ROP

80.97

Software Industry

Max
67.02
Q3
19.86
Median
0.70
Q1
-12.50
Min
-53.00

With an Interest Coverage Ratio of 80.97, ROP demonstrates a superior capacity to service its debt, placing it well above the typical range for the Software industry. This stems from either robust earnings or a conservative debt load.

LII vs. ROP: A comparison of their Interest Coverage Ratio (TTM) against their respective Building Products and Software industry benchmarks.

Financial Strength at a Glance

SymbolLIIROP
Current Ratio (MRQ)1.410.46
Quick Ratio (MRQ)0.710.43
Debt-to-Equity Ratio (MRQ)1.310.45
Interest Coverage Ratio (TTM)26.8180.97

Growth

Revenue Growth

LII vs. ROP: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

LII vs. ROP: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

LII

0.77%

Building Products Industry

Max
2.56%
Q3
1.94%
Median
1.04%
Q1
0.66%
Min
0.00%

LII’s Dividend Yield of 0.77% is consistent with its peers in the Building Products industry, providing a dividend return that is standard for its sector.

ROP

0.58%

Software Industry

Max
0.08%
Q3
0.03%
Median
0.00%
Q1
0.00%
Min
0.00%

ROP’s Dividend Yield of 0.58% is exceptionally high, placing it well above the typical range for the Software industry. While this may seem attractive, an unusually high yield can sometimes be a warning sign, reflecting a falling stock price or market concerns about the dividend’s sustainability.

LII vs. ROP: A comparison of their Dividend Yield (TTM) against their respective Building Products and Software industry benchmarks.

Dividend Payout Ratio (TTM)

LII

19.61%

Building Products Industry

Max
157.36%
Q3
77.74%
Median
29.49%
Q1
16.25%
Min
0.00%

LII’s Dividend Payout Ratio of 19.61% is within the typical range for the Building Products industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

ROP

21.99%

Software Industry

Max
1.32%
Q3
0.53%
Median
0.00%
Q1
0.00%
Min
0.00%

At 21.99%, ROP’s Dividend Payout Ratio is exceptionally high, exceeding the typical range for the Software industry. While this provides a significant return to shareholders, it may limit funds for reinvestment and could be difficult to sustain.

LII vs. ROP: A comparison of their Dividend Payout Ratio (TTM) against their respective Building Products and Software industry benchmarks.

Dividend at a Glance

SymbolLIIROP
Dividend Yield (TTM)0.77%0.58%
Dividend Payout Ratio (TTM)19.61%21.99%

Valuation

Price-to-Earnings Ratio (TTM)

LII

25.59

Building Products Industry

Max
66.79
Q3
37.37
Median
21.86
Q1
17.57
Min
9.70

LII’s P/E Ratio of 25.59 is within the middle range for the Building Products industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

ROP

37.65

Software Industry

Max
149.35
Q3
100.21
Median
47.97
Q1
26.77
Min
11.68

ROP’s P/E Ratio of 37.65 is within the middle range for the Software 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 vs. ROP: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Building Products and Software industry benchmarks.

Price-to-Sales Ratio (TTM)

LII

3.94

Building Products Industry

Max
6.40
Q3
3.25
Median
1.65
Q1
1.11
Min
0.34

LII’s P/S Ratio of 3.94 is in the upper echelon for the Building Products 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.

ROP

7.76

Software Industry

Max
25.24
Q3
13.52
Median
8.15
Q1
4.87
Min
0.98

ROP’s P/S Ratio of 7.76 aligns with the market consensus for the Software industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

LII vs. ROP: A comparison of their Price-to-Sales Ratio (TTM) against their respective Building Products and Software industry benchmarks.

Price-to-Book Ratio (MRQ)

LII

22.59

Building Products Industry

Max
13.31
Q3
6.85
Median
3.20
Q1
1.71
Min
0.73

At 22.59, LII’s P/B Ratio is at an extreme premium to the Building Products 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.

ROP

3.10

Software Industry

Max
30.95
Q3
14.91
Median
7.75
Q1
3.60
Min
0.38

ROP’s P/B Ratio of 3.10 is in the lower quartile for the Software industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

LII vs. ROP: A comparison of their Price-to-Book Ratio (MRQ) against their respective Building Products and Software industry benchmarks.

Valuation at a Glance

SymbolLIIROP
Price-to-Earnings Ratio (TTM)25.5937.65
Price-to-Sales Ratio (TTM)3.947.76
Price-to-Book Ratio (MRQ)22.593.10
Price-to-Free Cash Flow Ratio (TTM)28.8125.39