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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.

Company profile comparison for Lennox (LII) and Watsco (WSO.B)
Profile ItemLIIWSO.B
NameLennox International Inc.Watsco Inc. Class B Common Stock
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryBuilding ProductsTrading Companies & Distributors
GICS Sub-IndustryBuilding ProductsTrading Companies & Distributors
Market Capitalization11.70 billion USD12.92 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJuly 29, 1999March 17, 1980
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

LII
WSO.B
GSPC
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Lennox (LII) vs. Watsco (WSO.B), 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 Lennox (LII) and Watsco (WSO.B). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Lennox (LII) and Watsco (WSO.B)
MetricLIIWSO.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

LII
WSO.B
GSPC
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Lennox (LII) vs. Watsco (WSO.B), 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 Lennox (LII) and Watsco (WSO.B). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Lennox (LII) and Watsco (WSO.B)
MetricLIIWSO.B
Volatility (1Y, Annualized)41.59%40.28%
Beta (5Y)1.180.64
Max Drawdown (5Y)-49.95%-43.41%
Avg. Volume (3M)563.34K74

Risk-Adjusted Performance

Risk-Return Positioning

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LII and WSO.B 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 Lennox (LII) and Watsco (WSO.B)
MetricLIIWSO.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%
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Lennox (LII) vs. Watsco (WSO.B): A comparison of their ROE against the Capital Goods industry group benchmark.

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%
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Lennox (LII) vs. Watsco (WSO.B): A comparison of their net margin against the Capital Goods industry group benchmark.

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%
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Lennox (LII) vs. Watsco (WSO.B): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Lennox (LII) and Watsco (WSO.B)
MetricLIIWSO.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.

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Lennox (LII) vs. Watsco (WSO.B): A comparison of their Revenue Growth across different time periods.

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.

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Lennox (LII) vs. Watsco (WSO.B): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Lennox (LII) and Watsco (WSO.B)
MetricLIIWSO.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
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Lennox (LII) vs. Watsco (WSO.B): A comparison of their current ratio against the Capital Goods industry group benchmark.

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
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Lennox (LII) vs. Watsco (WSO.B): A comparison of their debt-to-equity ratio against the Capital Goods industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Lennox (LII) and Watsco (WSO.B)
MetricLIIWSO.B
Current Ratio (MRQ)1.213.15
Debt / Equity (MRQ)1.580.16
Net Debt / EBITDA1.73-0.14

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%
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Lennox (LII) vs. Watsco (WSO.B): A comparison of their dividend yield against the Capital Goods industry group benchmark.

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%
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Lennox (LII) vs. Watsco (WSO.B): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Lennox (LII) and Watsco (WSO.B)
MetricLIIWSO.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
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Lennox (LII) vs. Watsco (WSO.B): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

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
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Lennox (LII) vs. Watsco (WSO.B): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

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
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Lennox (LII) vs. Watsco (WSO.B): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Lennox (LII) and Watsco (WSO.B)
MetricLIIWSO.B
P/E Ratio (TTM)15.4727.26
P/S Ratio (TTM)2.151.74
P/B Ratio (MRQ)8.883.99
Free Cash Flow Yield (TTM)3.14%3.50%