Financial Analysis: Lennox International (NYSE:LII) vs. Janus International Group (NYSE:JBI)

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

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Janus International Group	3.68%	11.27%	4.88%
Lennox International	14.61%	66.42%	19.16%

Analyst Ratings

This is a summary of current ratings for Janus International Group and Lennox International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Janus International Group	1	3	1	0	2.00
Lennox International	2	9	5	0	2.19

Janus International Group currently has a consensus price target of $8.20, indicating a potential upside of 59.69%. Lennox International has a consensus price target of $546.58, indicating a potential upside of 33.02%. Given Janus International Group’s higher probable upside, equities research analysts plainly believe Janus International Group is more favorable than Lennox International.

Institutional and Insider Ownership

88.8% of Janus International Group shares are owned by institutional investors. Comparatively, 67.1% of Lennox International shares are owned by institutional investors. 4.7% of Janus International Group shares are owned by company insiders. Comparatively, 9.8% of Lennox International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Janus International Group and Lennox International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Janus International Group	$901.80 million	0.79	$53.80 million	$0.24	21.40
Lennox International	$5.20 billion	2.73	$805.80 million	$22.12	18.58

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

Risk & Volatility

Janus International Group has a beta of 1.47, suggesting that its stock price is 47% more volatile than the S&P 500. Comparatively, Lennox International has a beta of 1.19, suggesting that its stock price is 19% more volatile than the S&P 500.

Summary

Lennox International beats Janus International Group on 10 of the 14 factors compared between the two stocks.

About Janus International Group

Janus International Group, Inc. manufacturers and supplies turn-key self-storage, and commercial and industrial building solutions in North America and internationally. The company offers roll up and swing doors, hallway systems, relocatable storage moveable additional storage structures units, and other solutions. It also provides facility and door automation and access control technologies; and Noke smart entry system. The company was founded in 2002 and is headquartered in Temple, Georgia.

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.