Contrasting Lennox International (NYSE:LII) and JELD-WEN (NYSE:JELD)

JELD-WEN (NYSE:JELD) and Lennox International (NYSE:LII) are both industrials companies, but which is the superior investment? We will contrast the two businesses based on the strength of their profitability, valuation, dividends, earnings, risk, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

95.0% of JELD-WEN shares are held by institutional investors. Comparatively, 67.1% of Lennox International shares are held by institutional investors. 1.9% of JELD-WEN shares are held by insiders. Comparatively, 9.8% of Lennox International shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.

Earnings and Valuation

This table compares JELD-WEN and Lennox International”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
JELD-WEN	$3.21 billion	0.06	-$621.21 million	($6.04)	-0.34
Lennox International	$5.20 billion	2.43	$805.80 million	$22.12	16.55

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

Volatility and Risk

JELD-WEN has a beta of 2.18, indicating that its stock price is 118% more volatile than the S&P 500. Comparatively, Lennox International has a beta of 1.18, indicating that its stock price is 18% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent ratings and recommmendations for JELD-WEN and Lennox International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
JELD-WEN	1	5	0	0	1.83
Lennox International	2	9	5	0	2.19

JELD-WEN currently has a consensus target price of $2.10, suggesting a potential upside of 1.69%. Lennox International has a consensus target price of $540.33, suggesting a potential upside of 47.64%. Given Lennox International’s stronger consensus rating and higher probable upside, analysts clearly believe Lennox International is more favorable than JELD-WEN.

Profitability

This table compares JELD-WEN and Lennox International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
JELD-WEN	-16.36%	-246.42%	-5.69%
Lennox International	14.61%	66.42%	19.16%

Summary

Lennox International beats JELD-WEN on 12 of the 14 factors compared between the two stocks.

About JELD-WEN

JELD-WEN Holding, Inc. designs, manufactures, and sells wood, metal, and composite materials doors, windows, and related building products in North America and Europe. The company offers a line of residential interior and exterior door products, including patio doors, and folding or sliding wall systems; non-residential doors; stile and rail doors; and wood, vinyl, and wood composite windows. It also provides other ancillary products and services, such as trim boards, glasses, hardware and locks, window screens, and molded door skins, as well as miscellaneous installation and other services. The company sells its products under the JELD-WEN, AuraLast, MiraTEC, Extira, LaCANTINA, MMI Door, Karona, ImpactGard, JW, Aurora, IWP, True BLU, ABS, Siteline, National Door, Low-Friction Glider, Hydrolock, VPI, AURALINE, FINISHIELD, MILLENNIUM, TRUFIT, EPICVUE, EVELIN, Swedoor, Dooria, DANA, Mattiovi, Zargag, Alupan, Domoferm, Kellpax, and HSE brands. It serves wholesale distributors and retailers, retail home centers, and building product dealers, as well as homebuilders, contractors, and consumers. JELD-WEN Holding, Inc. was founded in 1960 and is based in Charlotte, North Carolina.

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.