LII vs. WSO.B: Lennox vs. Watsco Stock Comparison
How do Lennox (LII) and Watsco (WSO.B) 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
Lennox (LII) and Watsco (WSO.B) both fall under the Capital Goods industry group, but LII is classified in Building Products while WSO.B is classified in Trading Companies & Distributors.
| Profile Item | LII | WSO.B |
|---|---|---|
| Name | Lennox International Inc. | Watsco Inc. Class B Common Stock |
| Country/Region | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry Group | Capital Goods | Capital Goods |
| GICS Industry | Building Products | Trading Companies & Distributors |
| GICS Sub-Industry | Building Products | Trading Companies & Distributors |
| Market Capitalization | 11.70 billion USD | 12.92 billion USD |
| Currency | USD | USD |
| Exchange | NYSE | NYSE |
| Listing Date | July 29, 1999 | March 17, 1980 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | LII | WSO.B |
|---|---|---|
| Total Return (1Y) | -27.83% | -11.21% |
| Total Return (3Y, Annualized) | -2.32% | -3.05% |
| Total Return (5Y, Annualized) | 3.79% | 4.30% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | LII | WSO.B |
|---|---|---|
| Volatility (1Y, Annualized) | 41.59% | 40.28% |
| Beta (5Y) | 1.18 | 0.64 |
| Max Drawdown (5Y) | -49.95% | -43.41% |
| Avg. Volume (3M) | 563.34K | 74 |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | LII | WSO.B |
|---|---|---|
| Sharpe Ratio (1Y) | -0.77 | -0.38 |
| Sortino Ratio (1Y) | -0.96 | -0.57 |
Profitability
ROE (TTM)
Lennox (LII) at 62.82% clears its industry range for ROE, a sharper capital-efficiency signal than Watsco (WSO.B) at 16.21%, which is closer to a typical peer reading.
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%
WSO.B
Capital Goods industry group
16.21%
- Max
- 40.55%
- Q3
- 19.29%
- WSO.B
- 16.21%
- Median
- 12.12%
- Q1
- 4.08%
- Min
- -17.12%
Net Margin (TTM)
Lennox (LII) at 13.76% retains a top-quartile share of revenue as profit, ahead of Watsco (WSO.B) at 6.31%, which keeps about the industry-typical share.
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%
WSO.B
Capital Goods industry group
6.31%
- Max
- 27.47%
- Q3
- 12.10%
- WSO.B
- 6.31%
- Median
- 6.30%
- Q1
- 1.40%
- Min
- -12.89%
Operating Margin (TTM)
Lennox (LII) at 20.57% operates in the top operating margin quartile, ahead of Watsco (WSO.B) at 10.14%, which runs around its industry’s norm.
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%
WSO.B
Capital Goods industry group
10.14%
- Max
- 36.60%
- Q3
- 18.33%
- Median
- 11.12%
- WSO.B
- 10.14%
- Q1
- 5.14%
- Min
- -12.63%
Profitability Metrics
| Metric | LII | WSO.B |
|---|---|---|
| ROE (TTM) | 62.82% | 16.21% |
| ROA (TTM) | 15.93% | 8.27% |
| Net Margin (TTM) | 13.76% | 6.31% |
| Operating Margin (TTM) | 20.57% | 10.14% |
| Gross Margin (TTM) | 32.62% | 27.18% |
Growth
Revenue Growth
Both Lennox (LII) at -2.73% and Watsco (WSO.B) at -4.98% post bottom-quartile revenue growth versus peers, pointing to weaker demand or pricing momentum than typical rivals.
EPS Growth
Both Lennox (LII) at 1.11% and Watsco (WSO.B) at -7.47% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.
Growth Metrics
| Metric | LII | WSO.B |
|---|---|---|
| Revenue Growth (YoY) | -2.73% | -4.98% |
| Revenue Growth (3Y CAGR) | 3.26% | -0.16% |
| EPS Growth (YoY) | 1.11% | -7.47% |
| EPS Growth (3Y CAGR) | 17.97% | -6.89% |
Financial Strength
Current Ratio (MRQ)
Watsco (WSO.B) at 3.15 carries current ratio above its industry’s typical mid-range, while Lennox (LII) at 1.21 runs in the tighter-liquidity quartile — different working-capital profiles, both worth examining.
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
WSO.B
Capital Goods industry group
3.15
- Max
- 5.22
- WSO.B
- 3.15
- Q3
- 2.95
- Median
- 2.08
- Q1
- 1.43
- Min
- 0.36
Debt / Equity (MRQ)
Watsco (WSO.B) at 0.16 keeps leverage in the lower quartile, while Lennox (LII) at 1.58 sits in the higher-leverage quartile.
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
WSO.B
Capital Goods industry group
0.16
- Max
- 2.33
- Q3
- 1.12
- Median
- 0.60
- Q1
- 0.29
- WSO.B
- 0.16
- Min
- 0.00
Financial Strength Metrics
| Metric | LII | WSO.B |
|---|---|---|
| Current Ratio (MRQ) | 1.21 | 3.15 |
| Debt / Equity (MRQ) | 1.58 | 0.16 |
| Net Debt / EBITDA | 1.73 | -0.14 |
Dividends
Dividend Yield (TTM)
Lennox (LII) at 1.53% earns its spot in the top quartile of its industry’s yields; Watsco (WSO.B) at 4.02% is past the top of its own peer range — territory where a dividend-safety check matters more than the headline number.
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%
WSO.B
Capital Goods industry group
4.02%
- WSO.B
- 4.02%
- Max
- 2.66%
- Q3
- 1.14%
- Median
- 0.24%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Watsco (WSO.B) reports payout ratio above 100% at 109.66%, meaning dividends exceeded current-period earnings and sustainability needs extra context. Meanwhile Lennox (LII) reports 24.68%, ranking against industry peers normally.
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%
WSO.B
Capital Goods industry group
109.66%
- WSO.B
- 109.66%
- Max
- 67.39%
- Q3
- 28.02%
- Median
- 6.86%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | LII | WSO.B |
|---|---|---|
| Dividend Yield (TTM) | 1.53% | 4.02% |
| Dividend Payout Ratio (TTM) | 24.68% | 109.66% |
Valuation
P/E Ratio (TTM)
Lennox (LII) at 15.47 sits in the cheaper P/E ratio quartile, while Watsco (WSO.B) at 27.26 is closer to its industry’s usual earnings multiple — a discount for LII, though growth and earnings durability still matter.
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
WSO.B
Capital Goods industry group
27.26
- Max
- 59.38
- Q3
- 35.92
- WSO.B
- 27.26
- Median
- 25.41
- Q1
- 19.47
- Min
- 3.03
P/S Ratio (TTM)
On P/S ratio, both Lennox (LII) at 2.15 and Watsco (WSO.B) at 1.74 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.
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
WSO.B
Capital Goods industry group
1.74
- Max
- 7.54
- Q3
- 3.76
- Median
- 2.15
- WSO.B
- 1.74
- Q1
- 1.03
- Min
- 0.03
P/B Ratio (MRQ)
Watsco (WSO.B) at 3.99 is valued about in line with its industry on P/B ratio, while Lennox (LII) at 8.88 carries an above-peer premium to book — LII is pricier on assets.
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
WSO.B
Capital Goods industry group
3.99
- Max
- 9.66
- Q3
- 5.00
- WSO.B
- 3.99
- Median
- 3.12
- Q1
- 1.81
- Min
- -1.08
Valuation Metrics
| Metric | LII | WSO.B |
|---|---|---|
| P/E Ratio (TTM) | 15.47 | 27.26 |
| P/S Ratio (TTM) | 2.15 | 1.74 |
| P/B Ratio (MRQ) | 8.88 | 3.99 |
| Free Cash Flow Yield (TTM) | 3.14% | 3.50% |