Lennox International vs Simpson Manufacturing: Which Stock Could Rally?
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%.
Single stock can be risky, but there is a huge value to a broader diversified approach. If you seek an upside with less volatility than holding an individual stock, consider the High Quality Portfolio (HQ) – HQ has outperformed its benchmark – a combination of S&P 500, Russell, and S&P midcap index, and achieved returns exceeding 105% since its inception. Risk management is key – consider, what could long-term portfolio performance be if you blended 10% commodities, 10% gold, and 2% crypto with HQ’s performance metrics.
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
| 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.