Lennox International vs Simpson Manufacturing: Which Stock Could Rally?

LII: Lennox International logo
LII
Lennox International

Even as Lennox International fell -10% during the past Day, its peer Simpson Manufacturing may be a better choice. Consistently evaluating alternatives is core to sound investment approach. Simpson Manufacturing (SSD) stock offers superior revenue growth across key periods, better profitability, and relatively lower valuation vs Lennox International (LII) stock, suggesting you may be better off investing in SSD

  • SSD’s quarterly revenue growth was 5.7%, vs. LII’s -4.8%.
  • In addition, its Last 3-Year Average revenue growth came in at 6.3%, ahead of LII’s 5.2%.
  • SSD’s 3-year average margin is stronger: 20.5% vs. LII’s 18.3%.

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LII designs and manufactures heating, ventilation, air conditioning, and refrigeration products for residential and commercial markets, including furnaces, air conditioners, heat pumps, and refrigeration systems. SSD designs and manufactures wood and concrete construction products, including connectors and fastening systems, serving residential, light industrial, commercial, remodeling, and DIY markets.

Valuation & Performance Overview

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  LII SSD Preferred
     
Valuation      
P/EBIT Ratio 16.3 16.3 SSD
     
Revenue Growth      
Last Quarter -4.8% 5.7% SSD
Last 12 Months 3.8% 3.0% LII
Last 3 Year Average 5.2% 6.3% SSD
     
Operating Margins      
Last 12 Months 19.9% 19.6% LII
Last 3 Year Average 18.3% 20.5% SSD
     
Momentum      
Last 3 Year Return 126.9% 128.0% SSD

Note: For “Last 3 Year Return” metric, preferred stock is one with higher returns unless the returns are too high (>300%) which creates risk of sell off.
See more revenue details: LII Revenue Comparison | SSD Revenue Comparison
See more margin details: LII Operating Income Comparison | SSD Operating Income Comparison
 
But do these numbers tell the full story? Read Buy or Sell SSD Stock to see if Simpson Manufacturing’s edge holds up under the hood or if Lennox International still has cards to play (see Buy or Sell LII Stock).

Historical Market Performance

  2020 2021 2022 2023 2024 2025 Total [1] Avg Best
Returns
LII Return 14% 20% -25% 90% 37% -19% 130% <===
SSD Return 18% 50% -36% 125% -16% 8% 128%  
S&P 500 Return 16% 27% -19% 24% 23% 14% 106%  
Monthly Win Rates [3]
LII Win Rate 50% 83% 33% 58% 67% 44%   56%  
SSD Win Rate 67% 58% 42% 75% 42% 44%   55%  
S&P 500 Win Rate 58% 75% 42% 67% 75% 67%   64% <===
Max Drawdowns [4]
LII Max Drawdown -32% -2% -42% -3% -6% -17%   -17%  
SSD Max Drawdown -39% -1% -45% 0% -19% -15%   -20%  
S&P 500 Max Drawdown -31% -1% -25% -1% -2% -15%   -12% <===

[1] Cumulative total returns since the beginning of 2020
[2] 2025 data is for the year up to 10/22/2025 (YTD)
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year

 
No matter how good the numbers, stock investment is never a smooth ride. There is a risk you must factor in. Read SSD Dip Buyer Analyses and LII Dip Buyer Analyses to see how these stocks have fallen and recovered in the past.