Lennox International (LII) vs Watsco (WSO)
Head-to-head comparison of performance, valuation, growth, profitability and dividends. Prices delayed 15 minutes; data as of Oct 9, 2026.
Summary
Watsco (WSO) has outperformed Lennox International (LII) over the past year, losing 28.8% versus a loss of 34.8%. Over five years, LII leads with a +16.9% price change compared with -1.1% for WSO. Lennox International is the larger company by market cap ($12.27 billion vs $11.53 billion), about 1.1 times the size.
On valuation, Lennox International trades at a lower forward P/E (13.7x vs 20.9x for Watsco). Watsco offers the higher dividend yield (4.40% vs 1.48%). Lennox International converts more of its revenue into profit, with a net margin of 15.5% versus 6.9%.
Summary generated from market data by MetaCap's automated system. Methodology
Relative performance
Percent change in share price from the first common trading day shown; excludes dividends.
Head-to-head
| Metric | LII | WSO |
|---|---|---|
| Share price | $354.90 | $279.46 |
| Market cap | $12.27B | $11.53B |
| 1-day change | -1.84% | -0.98% |
| YTD return | -25.54% | -16.24% |
| 1-year return | -34.81% | -28.81% |
| 5-year return | +16.94% | -1.07% |
| P/E ratio (TTM) | 15.65 | 23.95 |
| Forward P/E | 13.69 | 20.95 |
| EPS (TTM) | $22.68 | $11.67 |
| Dividend yield | 1.48% | 4.40% |
| Annual dividend | $5.26 | $12.30 |
| Revenue (latest FY) | $5.20B | $7.24B |
| Revenue growth (YoY) | -2.73% | -4.98% |
| Net income (latest FY) | $805.80M | $496.99M |
| Gross margin | 33.39% | 28.05% |
| Operating margin | 20.05% | 9.95% |
| Net margin | 15.51% | 6.87% |
| 52-week high | $587.27 | $459.00 |
| 52-week low | $350.22 | $277.34 |
| Distance from 52-week high | -39.57% | -39.12% |
| Analyst consensus | hold | hold |
| Avg. price target upside | +33.18% | +34.51% |
| Average volume | 515.01K | 503.70K |
| Shares outstanding | 34.56M | 35.59M |
| Employees | 5,400 | 6,950 |
| Sector | Industrials | Consumer Discretionary |
| Industry | Industrial Machinery/Components | Industrial Machinery/Components |
Highlighted cells mark the higher value for growth, returns, margins and yield, and the lower value for P/E ratios. Highlighting is a mechanical comparison, not a recommendation.
Key differences
- Watsco trades at a higher earnings multiple (23.9x vs 15.6x trailing P/E).
- Watsco offers a meaningfully higher dividend yield (4.40% vs 1.48%).
- Lennox International is more profitable, keeping 15.5 cents of every revenue dollar as net income versus 6.9 cents for Watsco.
- The two companies sit in different sectors: Lennox International in Industrials and Watsco in Consumer Discretionary.
About Lennox International
LII stock →Lennox International Inc., together with its subsidiaries, designs, manufactures, and markets 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, air handlers, and unit heaters under Lennox, Dave Lennox Signature Collection, Armstrong Air, Ducane, AirEase, Concord, MagicPak, Advanced Distributor Products, Allied, Elite Series, Supco, Linebacker, Elite series, Merit Series, Comfort Sync, Healthy Climate, Healthy Climate Solutions, iComfort, ComfortSense, and Lennox Stores name.
Industrials · Industrial Machinery/Components · 5,400 employees
About Watsco
WSO stock →Watsco, Inc., together with its subsidiaries, engages in the distribution of air conditioning, heating, and refrigeration equipment, and related parts and supplies in the United States, Canada, Latin America, and the Caribbean. It distributes equipment, including residential ducted and ductless air conditioners, such as gas, electric, and oil furnaces; commercial air conditioning and heating equipment systems; and other specialized equipment.
Consumer Discretionary · Industrial Machinery/Components · 6,950 employees
LII vs WSO FAQ
Which is bigger, Lennox International or Watsco?
Lennox International (LII) is larger, with a market capitalization of $12.27B compared with $11.53B for Watsco (WSO).
Which stock has performed better over the past year, LII or WSO?
WSO returned -28.81% over the past 12 months, compared with -34.81% for LII (price return, excluding dividends). Past performance does not predict future results.
Which has the lower P/E ratio, LII or WSO?
LII has the lower trailing P/E at 15.6, versus 23.9 for WSO. A lower P/E is not by itself a sign of a better investment; it can reflect slower expected growth or higher risk.
Which pays a higher dividend, Lennox International or Watsco?
Watsco has the higher yield at 4.40%, compared with 1.48% for Lennox International.
Are Lennox International and Watsco in the same industry?
Yes. Both are classified in the Industrial Machinery/Components industry within the Industrials sector.