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Lennox International vs Watsco: Which Stock Looks Stronger in 2026?

Lennox International holds the cleaner structural position, with profitability as the main driver and stability adding further support. Watsco still has the edge on stability, which keeps the comparison from looking entirely one-sided. Both sides have seen trend damage — neither carries a clear market edge right now. With both trends damaged, the structural comparison carries most of the weight here.

The comparison is based on similar long-term financial trajectories, not sector labels. Both peer scores are relative to the Russell 1000 universe, making them directly comparable.

Updated 2026-08-16

Most of the lead runs through profitability, while growth acts as a real counterweight. The overall score gap is 9 points in favour of Lennox International Inc..

Trajectory Similarity
0.78
Similar
Peer-set rank: #8
within Lennox International Inc.'s functional peer set

This comparison is anchored in long-term financial trajectory similarity within the selected peer universe.

The pair sits on a clearly comparable long-term path, though it is not a near-twin match.

The match is driven mainly by revenue stability and capital structure.

Similarity drivers
revenue stabilitycapital structure
How to read the score
0.85–1.00 · Very similar0.70–0.84 · Similar0.55–0.69 · Moderately similarbelow 0.55 · Loose match
Peer-Relative Score
LII
Lennox International Inc.
53
Peer-Score
Signal qualitylow
Peer basis: Russell 1000
vs
WSO
Watsco, Inc.
44
Peer-Score
Signal qualitylow
Peer basis: Russell 1000

Scores reflect position relative to comparable companies with similar long-term financial trajectories.

Score differences across key dimensions.

Dimension spread: LII vs WSO Profitability 69 43 Stability 16 40 Valuation 83 61 Growth 21 25 LII WSO
Gap Ranking
#1 Profitability +26
#2 Stability +24
#3 Valuation +22
#4 Growth +4
Price Setup

Left means cheaper relative valuation. Higher means stronger structure.

Price setup map for LII and WSO Stronger + cheaper Stronger + richer Weaker + cheaper Weaker + richer LIIWSO Relative valuation Structural strength

Structure stays fairly close here, while current pricing still looks more supportive for Lennox International Inc..

Valuation position uses peer-relative PE percentile (idx_pct_pe) where available.

Entry today — historical context

Where LII and WSO each sit in their own 5-year price and valuation history.

BASED ON 5-YEAR HISTORY LII Neutral · below norm 0th 50th 100th 12 pct gap WSO Neutral · below norm 0th 50th 100th 48th 36th
LII (48th percentile) and WSO (36th percentile) both sit in the lower-middle of their own 5-year ranges. The historical entry context is broadly similar for both. This reflects entry timing, not which company is structurally stronger.

Describes historical entry positioning only. Descriptive — not investment advice.

Relative Position vs Comparable Companies
Profitability
Both profiles are strong on profitability, but Lennox International Inc. leads clearly.
Stability
Watsco, Inc. holds the stronger peer position on stability.
Profitability — Dominant Gap
LII
69
WSO
43
Gap+26in favour of LII

The profitability lead is mainly driven by a 11.9-point operating margin advantage.

What keeps the gap from being one-sided

There is still a strong counterforce in stability, so the lead stays clear without becoming a sweep.

What this means for the comparison

Profitability is the clearest driver of the lead, with stability adding further support — though stability still provides a real counterweight.

Explore full peer positioning in AssetNext

Break down the LII vs WSO comparison across all dimensions with the full interactive tool.

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Other comparisons with conflicting dimension signals

Explore how LII and WSO each compare against other companies in their peer groups.

Rule-based, descriptive analysis only. Derived from peer percentile dimensions. Not investment advice. Peer groups are determined algorithmically based on structural similarity — not by sector classification alone.

How AssetNext Peer Scores Work

AssetNext scores reflect each company's structural position within its functional peer group — not a ranking against all stocks simultaneously. Peers are identified by similarity across eight financial dimensions, including revenue growth trajectory, margin structure, capital intensity, and earnings stability. A score of 75 means the company ranks in the top quartile within its own peer group, not the entire market.

Four dimension scores drive the overall peer score: Growth (revenue trajectory and expansion dynamics), Quality (margin structure and capital efficiency), Valuation (peer-relative pricing on standard multiples), and Stability (earnings consistency and financial predictability). Each dimension is scored 0–100 relative to the peer group, then combined into an overall peer score using equal weighting.

Because scores are peer-relative, the same company can have slightly different scores in different index universes. On comparison pages, both companies are shown within their shared peer universe wherever possible — so the scores are directly comparable. The peer basis is stated on each score card.

Scores are recalculated periodically as underlying financial data is updated. All analysis is descriptive and rule-based — AssetNext describes structural realities and never issues buy, sell or hold recommendations.