Lennox International (NYSE:LII) and Mestek (OTCMKTS:MCCK) are both construction companies, but which is the superior business? We will contrast the two businesses based on the strength of their profitability, analyst recommendations, institutional ownership, dividends, risk, earnings and valuation.
Risk & Volatility
Lennox International has a beta of 0.96, suggesting that its stock price is 4% less volatile than the S&P 500. Comparatively, Mestek has a beta of 0.34, suggesting that its stock price is 66% less volatile than the S&P 500.
Profitability
This table compares Lennox International and Mestek’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Lennox International | 9.53% | -145.33% | 17.00% |
| Mestek | N/A | N/A | N/A |
Institutional & Insider Ownership
71.0% of Lennox International shares are owned by institutional investors. Comparatively, 0.4% of Mestek shares are owned by institutional investors. 3.4% of Lennox International shares are owned by company insiders. Comparatively, 65.2% of Mestek shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Lennox International and Mestek’s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Lennox International | $3.81 billion | 2.77 | $408.70 million | $11.19 | 24.63 |
| Mestek | N/A | N/A | N/A | N/A | N/A |
Lennox International has higher revenue and earnings than Mestek.
Analyst Ratings
This is a summary of recent recommendations and price targets for Lennox International and Mestek, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Lennox International | 1 | 9 | 2 | 0 | 2.08 |
| Mestek | 0 | 0 | 0 | 0 | N/A |
Lennox International presently has a consensus target price of $226.36, suggesting a potential downside of 17.86%. Given Lennox International’s higher possible upside, research analysts clearly believe Lennox International is more favorable than Mestek.
Summary
Lennox International beats Mestek on 7 of the 9 factors compared between the two stocks.
About Lennox International
Lennox International, Inc. engages in the design, manufacture, and marketing of products for heating, ventilation, air conditioning, and refrigeration. It operates through the following business segments: Residential Heating and Cooling, Commercial Heating and Cooling, and Refrigeration. The Residential Heating and Cooling segment manufactures and markets furnaces, air conditioners, heat pumps, packaged heating and cooling systems, equipment, and accessories. The Commercial Heating and Cooling segment sells unitary heating and cooling equipment used in light commercial applications. The Refrigeration segment includes retails equipment for commercial refrigeration market including condensing unit, unit coolers, fluid, coolers, air cooled condensers, supermarket display cases, and systems. The company was founded by Dave Lennox in 1895 and is headquartered in Richardson, TX.
About Mestek
Mestek, Inc., together with its subsidiaries, manufactures and sells heating, ventilating, and air conditioning products and equipment; and metal forming equipment in the United States and internationally. The company offers equipment for heating, ventilation, and air conditioning primarily under the Lockformer, lowaPrecision, Engel, and Lion brands; roll forming and flexible fabrication equipment; metal stamping products, including uncoilers, straighteners, press feeds, and dies; and coil metal processing products, including cut-to-length, multi-blanking, and coil slitting and precision corrective levelers. It also provides a range of aftermarket services, such as OEM replacement parts for existing and used equipment, and on-site service support and training services. In addition, it engages in equipment rebuilding and electrical installation works; and tube and pipe production and fabrication. Further, the company offers custom metal-framed skylights, canopies, curtain walls, covered walkways, rain screens/wall-cladding, structural glass/point fixed glass, and ornamental metal products. Additionally, it provides operable and fixed solar shading louver systems; and architectural louvers, grilles, vision screens, penthouses, and brise soleil fixed sunshades. Mestek, Inc. was founded in 1898 and is based in Westfield, Massachusetts.
Receive News & Ratings for Lennox International Daily – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings for Lennox International and related companies with MarketBeat.com’s FREE daily email newsletter.
.jpg){kind=logo}