Kingspan Group (OTCMKTS:KGSPF) and Lennox International (NYSE:LII) Financial Comparison

Lennox International (NYSE:LII) and Kingspan Group (OTCMKTS:KGSPF) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, valuation, institutional ownership, risk, dividends, earnings and analyst recommendations.

Analyst Ratings

This is a summary of current ratings and recommmendations for Lennox International and Kingspan Group, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lennox International	1	6	6	0	2.38
Kingspan Group	0	0	0	0	N/A

Lennox International presently has a consensus price target of $543.62, indicating a potential downside of 7.89%. Given Lennox International’s higher possible upside, analysts clearly believe Lennox International is more favorable than Kingspan Group.

Earnings and Valuation

This table compares Lennox International and Kingspan Group’s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lennox International	$5.02 billion	4.19	$590.10 million	$17.26	34.19
Kingspan Group	N/A	N/A	N/A	$0.57	150.09

Lennox International has higher revenue and earnings than Kingspan Group. Lennox International is trading at a lower price-to-earnings ratio than Kingspan Group, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Lennox International and Kingspan Group’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Lennox International	12.85%	198.36%	23.19%
Kingspan Group	N/A	N/A	N/A

Dividends

Lennox International pays an annual dividend of $4.60 per share and has a dividend yield of 0.8%. Kingspan Group pays an annual dividend of $0.09 per share and has a dividend yield of 0.1%. Lennox International pays out 26.7% of its earnings in the form of a dividend. Kingspan Group pays out 15.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Lennox International has raised its dividend for 15 consecutive years. Lennox International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

67.1% of Lennox International shares are held by institutional investors. Comparatively, 46.6% of Kingspan Group shares are held by institutional investors. 10.4% of Lennox International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Summary

Lennox International beats Kingspan Group on 11 of the 13 factors compared between the two stocks.

About Lennox International

Lennox International Inc., together with its subsidiaries, designs, manufactures, and markets a range of products for the heating, ventilation, air conditioning, and refrigeration markets in the United States, Canada, and internationally. The Home Comfort Solutions segment provides furnaces, air conditioners, heat pumps, packaged heating and cooling systems, indoor air quality equipment, comfort control products, and replacement parts and supplies; residential heating, ventilation, cooling equipment, and air conditioning; and evaporator coils and unit heaters under Lennox, Dave Lennox Signature Collection, Armstrong Air, Ducane, AirEase, Concord, MagicPak, Advanced Distributor Products, Allied, Elite Series, Merit Series, Comfort Sync, Healthy Climate, iComfort, ComfortSense, and Lennox Stores name. The Building Climate Solutions segment offers unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment, variable refrigerant flow commercial, curb, curb adapters, drop box diffusers, HVAC recycling, and salvage service. This segment also provides condensing units, unit coolers, fluid coolers, air cooled condensers, air handlers, and refrigeration rack systems for preserving food and other perishables; and compressor racks and industrial process chillers under the Lennox, Model L, CORE, Enlight, Xion, Energence, Prodigy, Strategos, Raider, Lennox VRF, Lennox National Account Services, Allied Commercial, Elite, AES Industries, Mechanical, and Reclaim, Heatcraft Worldwide and Chandler Refrigeration, Bohn, MAGNA, Larkin, FriguaBohn, IntelliGen, and Interlink brand name. In addition, the company provides small package units, rooftop units, chillers, air handlers, and fan coils. It sells its products and services through direct sales, distributors, and company-owned parts and supplies stores. The company was founded in 1895 and is headquartered in Richardson, Texas.

About Kingspan Group

Kingspan Group plc, together with its subsidiaries, provides insulation and building envelope solutions in Western and Southern Europe, Central and Northern Europe, the Americas, and internationally. It operates through five segments: Insulated Panels, Insulation, Roofing + Waterproofing, Light, Air + Water, and Data + Flooring. The Insulated Panels segment manufactures insulated panels, structural framing, and metal facades. The Insulation segment produces rigid insulation boards, technical insulation, and engineered timber systems. The Roofing + Waterproofing segment produces roofing and waterproofing solutions for renovation and new construction of buildings. The Light, Air + Water segment offers daylighting, smoke management, ventilation systems, and service activities, as well as provides energy and water solutions, and related services. The Data + Flooring segment manufactures data center storage solutions, as well as raised access floors. Kingspan Group plc was founded in 1965 and is based in Kingscourt, Ireland.