Lennox International Inc. (LII) vs Watsco, Inc. (WSO)
A side-by-side comparison of Lennox International Inc. and Watsco, Inc. across valuation, profitability, dividends, and growth — built entirely from reported fundamentals, as of August 27, 2026. Differences are shown without an overall score or investment verdict.
LII
Lennox International Inc.
$391.15IndustrialsDelayed quote: Aug 27, 2026, 4:00 PM EDT
WSO
Watsco, Inc.
$313.05IndustrialsDelayed quote: Aug 27, 2026, 4:00 PM EDT
Total return — LII vs WSO
growth of $100 · dividends reinvested · last 10yLII +177.8% (+10.8%/yr)WSO +178.8% (+10.8%/yr)WSO compounded faster over this window
LII WSO
LII vs WSO: by the numbers
- •LII is the larger company ($13.52B vs $12.89B market cap).
- •LII trades at the lower trailing earnings multiple (17.82 vs 27.03 P/E), one valuation lens rather than an overall verdict.
- •LII converts more revenue to profit (14.61% vs 6.53% net margin).
- •WSO pays the higher dividend yield (4.02% vs 1.34%).
Metrics side by side
Valuation
| Metric | LII | WSO |
|---|---|---|
| P/E ratio | 17.82 | 27.03 |
| Forward P/E | 16.60 | 25.92 |
| P/S ratio | 2.58 | 1.64 |
| P/B ratio | 10.56 | 3.98 |
| EV / EBITDA | 13.35 | 16.72 |
| FCF yield | 5.39% | 5.85% |
Profitability
| Metric | LII | WSO |
|---|---|---|
| Gross margin | 33.10% | 27.87% |
| Operating margin | 19.37% | 9.32% |
| Net margin | 14.61% | 6.53% |
| ROE | 59.71% | 15.89% |
| ROIC | 23.32% | 13.49% |
Dividends
| Metric | LII | WSO |
|---|---|---|
| Dividend yield | 1.34% | 4.02% |
| Payout ratio | 23.58% | 102.86% |
Growth (annualized)
| Metric | LII | WSO |
|---|---|---|
| Revenue CAGR (5Y) | 5.08% | 5.11% |
| EPS CAGR (5Y) | 19.13% | 11.75% |
| FCF CAGR (5Y) | 1.09% | 15.78% |
| Total return CAGR (5Y) | 4.90% | 5.33% |
Frequently asked
- Which has the lower trailing P/E, LII or WSO?
- LII has the lower trailing P/E: LII trades at 17.82 and WSO at 27.03. P/E is one valuation measure and does not by itself establish which business is cheaper.
- Which has grown faster, LII or WSO?
- Over the past five years, WSO grew revenue faster — LII at a 5.08% CAGR versus WSO at 5.11%.
- Does LII or WSO pay a bigger dividend?
- LII yields 1.34% and WSO yields 4.02% based on trailing dividends and the latest price.
- Is LII or WSO more profitable?
- LII runs the higher net margin — LII at 14.61% versus WSO at 6.53%.
- How have LII and WSO total returns compared?
- Over the past 10 years, LII delivered 10.76% and WSO delivered 11.27% annualized total return. Past performance doesn't predict future results.
Go deeper
Dig into the metrics
Lennox International P/E ratioWatsco P/E ratioLennox International dividend yieldWatsco dividend yieldLennox International ROEWatsco ROELennox International operating marginWatsco operating marginLennox International revenue growthWatsco revenue growthLennox International free cash flowWatsco free cash flow
Lennox International & Watsco appear in these rankings
Figures are sourced from reported fundamentals and the latest end-of-day price. This comparison is informational only and is not investment advice. Past performance does not predict future results. See our methodology. Compiled by TGMCharts Research · data verified August 27, 2026.