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LII vs. WTS: Lennox vs. Watts Water Stock Comparison

How do Lennox (LII) and Watts Water (WTS) 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 Watts Water (WTS) both fall under the Capital Goods industry group, but LII is classified in Building Products while WTS is classified in Machinery.

Company profile comparison for Lennox (LII) and Watts Water (WTS)
Profile ItemLIIWTS
NameLennox International Inc.Watts Water Technologies, Inc. Class A Common Stock
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryBuilding ProductsMachinery
GICS Sub-IndustryBuilding ProductsIndustrial Machinery & Supplies & Components
Market Capitalization11.70 billion USD11.55 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateJuly 29, 1999August 21, 1986
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

LII
WTS
GSPC
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Lennox (LII) vs. Watts Water (WTS), 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 Watts Water (WTS). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Lennox (LII) and Watts Water (WTS)
MetricLIIWTS
Total Return (1Y)-27.83%33.85%
Total Return (3Y, Annualized)-2.32%25.59%
Total Return (5Y, Annualized)3.79%12.56%

Risk Profile

Drawdown History

LII
WTS
GSPC
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Lennox (LII) vs. Watts Water (WTS), 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 Watts Water (WTS). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Lennox (LII) and Watts Water (WTS)
MetricLIIWTS
Volatility (1Y, Annualized)41.59%27.38%
Beta (5Y)1.181.11
Max Drawdown (5Y)-49.95%-44.08%
Avg. Volume (3M)563.34K225.08K

Risk-Adjusted Performance

Risk-Return Positioning

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LII and WTS 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 Watts Water (WTS)
MetricLIIWTS
Sharpe Ratio (1Y)-0.771.08
Sortino Ratio (1Y)-0.961.78

Profitability

ROE (TTM)

Both companies show strong equity returns, but Lennox (LII) at 62.82% is the standout with ROE above its industry range; Watts Water (WTS) at 20.91% also sits in the top quartile.

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%

WTS

Capital Goods industry group

20.91%

Max
40.55%
WTS
20.91%
Q3
19.29%
Median
12.12%
Q1
4.08%
Min
-17.12%
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Lennox (LII) vs. Watts Water (WTS): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

For every dollar of sales, both Lennox (LII) at 13.76% and Watts Water (WTS) at 16.00% retain more as net profit than most peers, landing in the top net margin quartile of their industries.

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%

WTS

Capital Goods industry group

16.00%

Max
27.47%
WTS
16.00%
Q3
12.10%
Median
6.30%
Q1
1.40%
Min
-12.89%
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Lennox (LII) vs. Watts Water (WTS): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Both Lennox (LII) at 20.57% and Watts Water (WTS) at 20.85% convert sales into operating profit at a top-quartile rate, pointing to tighter cost discipline before financing and tax.

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%

WTS

Capital Goods industry group

20.85%

Max
36.60%
WTS
20.85%
Q3
18.33%
Median
11.12%
Q1
5.14%
Min
-12.63%
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Lennox (LII) vs. Watts Water (WTS): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Lennox (LII) and Watts Water (WTS)
MetricLIIWTS
ROE (TTM)62.82%20.91%
ROA (TTM)15.93%12.05%
Net Margin (TTM)13.76%16.00%
Operating Margin (TTM)20.57%20.85%
Gross Margin (TTM)32.62%49.09%

Growth

Revenue Growth

Watts Water (WTS) at 8.27% 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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Lennox (LII) vs. Watts Water (WTS): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Lennox (LII) at 1.11% and Watts Water (WTS) at 17.03% 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. Watts Water (WTS): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Lennox (LII) and Watts Water (WTS)
MetricLIIWTS
Revenue Growth (YoY)-2.73%8.27%
Revenue Growth (3Y CAGR)3.26%7.20%
EPS Growth (YoY)1.11%17.03%
EPS Growth (3Y CAGR)17.97%10.78%

Financial Strength

Current Ratio (MRQ)

Watts Water (WTS) at 2.80 keeps current ratio within its industry’s typical mid-range, while Lennox (LII) at 1.21 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for LII.

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

WTS

Capital Goods industry group

2.80

Max
5.22
Q3
2.95
WTS
2.80
Median
2.08
Q1
1.43
Min
0.36
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Lennox (LII) vs. Watts Water (WTS): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Watts Water (WTS) at 0.08 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

WTS

Capital Goods industry group

0.08

Max
2.33
Q3
1.12
Median
0.60
Q1
0.29
WTS
0.08
Min
0.00
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Lennox (LII) vs. Watts Water (WTS): 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 Watts Water (WTS)
MetricLIIWTS
Current Ratio (MRQ)1.212.80
Debt / Equity (MRQ)1.580.08
Net Debt / EBITDA1.73-0.40

Dividends

Dividend Yield (TTM)

Lennox (LII) at 1.53% delivers top-quartile income for its industry, while Watts Water (WTS) at 0.66% pays a more typical yield — both are credible income propositions, LII the richer one.

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%

WTS

Capital Goods industry group

0.66%

Max
2.66%
Q3
1.14%
WTS
0.66%
Median
0.24%
Q1
0.00%
Min
0.00%
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Lennox (LII) vs. Watts Water (WTS): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Both Lennox (LII) at 24.68% and Watts Water (WTS) at 17.24% keep payout ratio within their industries’ typical mid-ranges — dividend policies that share earnings without consuming too much of them.

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%

WTS

Capital Goods industry group

17.24%

Max
67.39%
Q3
28.02%
WTS
17.24%
Median
6.86%
Q1
0.00%
Min
0.00%
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Lennox (LII) vs. Watts Water (WTS): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Lennox (LII) and Watts Water (WTS)
MetricLIIWTS
Dividend Yield (TTM)1.53%0.66%
Dividend Payout Ratio (TTM)24.68%17.24%

Valuation

P/E Ratio (TTM)

Lennox (LII) at 15.47 sits in the cheaper P/E ratio quartile, while Watts Water (WTS) at 25.95 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

WTS

Capital Goods industry group

25.95

Max
59.38
Q3
35.92
WTS
25.95
Median
25.41
Q1
19.47
Min
3.03
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Lennox (LII) vs. Watts Water (WTS): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

Lennox (LII) at 2.15 is priced about in line with its industry on P/S ratio, while Watts Water (WTS) at 4.14 sits in the pricier quartile — WTS costs more per dollar of sales.

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

WTS

Capital Goods industry group

4.14

Max
7.54
WTS
4.14
Q3
3.76
Median
2.15
Q1
1.03
Min
0.03
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Lennox (LII) vs. Watts Water (WTS): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

Watts Water (WTS) at 4.98 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

WTS

Capital Goods industry group

4.98

Max
9.66
Q3
5.00
WTS
4.98
Median
3.12
Q1
1.81
Min
-1.08
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Lennox (LII) vs. Watts Water (WTS): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Lennox (LII) and Watts Water (WTS)
MetricLIIWTS
P/E Ratio (TTM)15.4725.95
P/S Ratio (TTM)2.154.14
P/B Ratio (MRQ)8.884.98
Free Cash Flow Yield (TTM)3.14%2.21%