A. O. Smith (AOS) Competitors

Lennox International (NYSE:LII) and A. O. Smith (NYSE:AOS) are both construction companies, but which is the superior stock? We will compare the two companies based on the strength of their profitability, risk, media sentiment, valuation, earnings, institutional ownership, analyst recommendations, dividends and community ranking.

Does the media prefer LII or AOS?

In the previous week, A. O. Smith had 3 more articles in the media than Lennox International. MarketBeat recorded 10 mentions for A. O. Smith and 7 mentions for Lennox International. Lennox International's average media sentiment score of 0.88 beat A. O. Smith's score of 0.59 indicating that Lennox International is being referred to more favorably in the media.

Company	Very Positive	Positive	Neutral	Negative	Very Negative	Overall Sentiment
Lennox International	4 Very Positive mention(s)	0 Positive mention(s)	1 Neutral mention(s)	1 Negative mention(s)	0 Very Negative mention(s)	Positive
A. O. Smith	7 Very Positive mention(s)	0 Positive mention(s)	2 Neutral mention(s)	0 Negative mention(s)	0 Very Negative mention(s)	Positive

Which has better valuation & earnings, LII or AOS?

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

Company	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Lennox International	$5.34B	3.90	$806.90M	$22.54	26.00
A. O. Smith	$3.82B	2.50	$533.60M	$3.63	18.28

Do insiders and institutionals believe in LII or AOS?

67.1% of Lennox International shares are held by institutional investors. Comparatively, 76.1% of A. O. Smith shares are held by institutional investors. 10.4% of Lennox International shares are held by insiders. Comparatively, 2.7% of A. O. Smith shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Does the MarketBeat Community believe in LII or AOS?

A. O. Smith received 81 more outperform votes than Lennox International when rated by MarketBeat users. Likewise, 61.46% of users gave A. O. Smith an outperform vote while only 47.05% of users gave Lennox International an outperform vote.

Company	Underperform	Outperform
Lennox International	Outperform Votes 391 47.05%	Underperform Votes 440 52.95%
A. O. Smith	Outperform Votes 472 61.46%	Underperform Votes 296 38.54%

Do analysts prefer LII or AOS?

Lennox International currently has a consensus price target of $608.85, indicating a potential upside of 3.88%. A. O. Smith has a consensus price target of $80.86, indicating a potential upside of 21.85%. Given A. O. Smith's stronger consensus rating and higher probable upside, analysts plainly believe A. O. Smith is more favorable than Lennox International.

Company	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Lennox International	4 Sell rating(s)	5 Hold rating(s)	4 Buy rating(s)	0 Strong Buy rating(s)	2.00
A. O. Smith	0 Sell rating(s)	5 Hold rating(s)	2 Buy rating(s)	0 Strong Buy rating(s)	2.29

Is LII or AOS more profitable?

Lennox International has a net margin of 15.11% compared to A. O. Smith's net margin of 13.98%. Lennox International's return on equity of 126.79% beat A. O. Smith's return on equity.

Company	Net Margins	Return on Equity	Return on Assets
Lennox International	15.11%	126.79%	24.89%
A. O. Smith	13.98%	28.87%	17.16%

Which has more volatility and risk, LII or AOS?

Lennox International has a beta of 1.1, meaning that its stock price is 10% more volatile than the S&P 500. Comparatively, A. O. Smith has a beta of 1.17, meaning that its stock price is 17% more volatile than the S&P 500.

Is LII or AOS a better dividend stock?

Lennox International pays an annual dividend of $4.60 per share and has a dividend yield of 0.8%. A. O. Smith pays an annual dividend of $1.36 per share and has a dividend yield of 2.0%. Lennox International pays out 20.4% of its earnings in the form of a dividend. A. O. Smith pays out 37.5% 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 and A. O. Smith has raised its dividend for 31 consecutive years. A. O. Smith is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Lennox International beats A. O. Smith on 12 of the 21 factors compared between the two stocks.