Seek Returns logo

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

Updated on

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

Company Profile

SymbolLIISWK
Company NameLennox International Inc.Stanley Black & Decker, Inc.
CountryUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS IndustryBuilding ProductsMachinery
Market Capitalization19.34 billion USD11.67 billion USD
ExchangeNYSENYSE
Listing DateJuly 29, 1999March 17, 1980
Security TypeCommon StockCommon Stock

Historical Performance

This chart compares the performance of LII and SWK 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. SWK: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolLIISWK
5-Day Price Return5.76%2.06%
13-Week Price Return-8.87%6.08%
26-Week Price Return-1.82%-1.90%
52-Week Price Return-7.00%-30.97%
Month-to-Date Return4.02%1.47%
Year-to-Date Return-9.63%-6.07%
10-Day Avg. Volume0.41M1.49M
3-Month Avg. Volume0.39M2.21M
3-Month Volatility32.31%37.22%
Beta1.181.22

Profitability

Return on Equity (TTM)

LII

99.44%

Building Products Industry

Max
46.90%
Q3
27.60%
Median
15.43%
Q1
8.94%
Min
0.77%

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.

SWK

6.59%

Machinery Industry

Max
33.68%
Q3
20.05%
Median
12.37%
Q1
8.67%
Min
-7.69%

SWK’s Return on Equity of 6.59% is in the lower quartile for the Machinery industry. This indicates a less efficient generation of profit from its equity base when compared to its competitors.

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

Net Profit Margin (TTM)

LII

15.41%

Building Products Industry

Max
19.42%
Q3
13.74%
Median
8.72%
Q1
4.81%
Min
0.46%

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.

SWK

3.85%

Machinery Industry

Max
19.72%
Q3
11.07%
Median
7.62%
Q1
5.05%
Min
-1.52%

Falling into the lower quartile for the Machinery industry, SWK’s Net Profit Margin of 3.85% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

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

Operating Profit Margin (TTM)

LII

19.52%

Building Products Industry

Max
26.72%
Q3
17.70%
Median
12.14%
Q1
9.54%
Min
1.65%

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.

SWK

4.70%

Machinery Industry

Max
26.63%
Q3
15.99%
Median
11.27%
Q1
7.72%
Min
-0.51%

SWK’s Operating Profit Margin of 4.70% is in the lower quartile for the Machinery industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

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

Profitability at a Glance

SymbolLIISWK
Return on Equity (TTM)99.44%6.59%
Return on Assets (TTM)24.03%2.63%
Net Profit Margin (TTM)15.41%3.85%
Operating Profit Margin (TTM)19.52%4.70%
Gross Profit Margin (TTM)33.13%30.03%

Financial Strength

Current Ratio (MRQ)

LII

1.41

Building Products Industry

Max
3.10
Q3
2.06
Median
1.60
Q1
1.30
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.

SWK

1.04

Machinery Industry

Max
3.13
Q3
2.12
Median
1.72
Q1
1.34
Min
0.77

SWK’s Current Ratio of 1.04 falls into the lower quartile for the Machinery industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

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

Debt-to-Equity Ratio (MRQ)

LII

1.31

Building Products Industry

Max
1.64
Q3
1.02
Median
0.62
Q1
0.20
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.

SWK

0.74

Machinery Industry

Max
1.56
Q3
0.79
Median
0.44
Q1
0.27
Min
0.00

SWK’s Debt-to-Equity Ratio of 0.74 is typical for the Machinery industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

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

Interest Coverage Ratio (TTM)

LII

26.81

Building Products Industry

Max
72.12
Q3
34.39
Median
23.97
Q1
7.29
Min
2.97

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.

SWK

1.75

Machinery Industry

Max
81.58
Q3
37.68
Median
13.76
Q1
7.97
Min
-1.43

In the lower quartile for the Machinery industry, SWK’s Interest Coverage Ratio of 1.75 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

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

Financial Strength at a Glance

SymbolLIISWK
Current Ratio (MRQ)1.411.04
Quick Ratio (MRQ)0.710.29
Debt-to-Equity Ratio (MRQ)1.310.74
Interest Coverage Ratio (TTM)26.811.75

Growth

Revenue Growth

LII vs. SWK: 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. SWK: 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

0.86%

Building Products Industry

Max
2.51%
Q3
1.92%
Median
1.30%
Q1
0.78%
Min
0.00%

LII’s Dividend Yield of 0.86% is consistent with its peers in the Building Products industry, providing a dividend return that is standard for its sector.

SWK

7.43%

Machinery Industry

Max
4.55%
Q3
2.66%
Median
1.90%
Q1
1.23%
Min
0.00%

SWK’s Dividend Yield of 7.43% is exceptionally high, placing it well above the typical range for the Machinery 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. SWK: A comparison of their Dividend Yield (TTM) against their respective Building Products and Machinery industry benchmarks.

Dividend Payout Ratio (TTM)

LII

19.61%

Building Products Industry

Max
157.36%
Q3
76.90%
Median
30.70%
Q1
17.97%
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.

SWK

148.38%

Machinery Industry

Max
198.34%
Q3
101.42%
Median
62.79%
Q1
29.85%
Min
0.00%

SWK’s Dividend Payout Ratio of 148.38% is in the upper quartile for the Machinery 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 vs. SWK: A comparison of their Dividend Payout Ratio (TTM) against their respective Building Products and Machinery industry benchmarks.

Dividend at a Glance

SymbolLIISWK
Dividend Yield (TTM)0.86%7.43%
Dividend Payout Ratio (TTM)19.61%148.38%

Valuation

Price-to-Earnings Ratio (TTM)

LII

22.92

Building Products Industry

Max
45.60
Q3
30.36
Median
21.97
Q1
17.37
Min
12.44

LII’s P/E Ratio of 22.92 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.

SWK

19.98

Machinery Industry

Max
47.95
Q3
30.11
Median
22.35
Q1
16.56
Min
6.48

SWK’s P/E Ratio of 19.98 is within the middle range for the 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 vs. SWK: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Building Products and Machinery industry benchmarks.

Price-to-Sales Ratio (TTM)

LII

3.53

Building Products Industry

Max
5.90
Q3
3.09
Median
1.72
Q1
1.07
Min
0.37

LII’s P/S Ratio of 3.53 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.

SWK

0.77

Machinery Industry

Max
4.97
Q3
2.76
Median
1.65
Q1
1.04
Min
0.04

In the lower quartile for the Machinery industry, SWK’s P/S Ratio of 0.77 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

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

Price-to-Book Ratio (MRQ)

LII

22.59

Building Products Industry

Max
10.99
Q3
5.69
Median
2.98
Q1
1.80
Min
0.66

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.

SWK

1.16

Machinery Industry

Max
7.29
Q3
4.06
Median
2.67
Q1
1.54
Min
0.52

SWK’s P/B Ratio of 1.16 is in the lower quartile for the Machinery 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. SWK: A comparison of their Price-to-Book Ratio (MRQ) against their respective Building Products and Machinery industry benchmarks.

Valuation at a Glance

SymbolLIISWK
Price-to-Earnings Ratio (TTM)22.9219.98
Price-to-Sales Ratio (TTM)3.530.77
Price-to-Book Ratio (MRQ)22.591.16
Price-to-Free Cash Flow Ratio (TTM)25.807.04