Forbo (OTCMKTS:FBOHY – Get Free Report) and Lennox International (NYSE:LII – Get Free Report) are both industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their valuation, risk, earnings, profitability, analyst recommendations, institutional ownership and dividends.
Profitability
This table compares Forbo and Lennox International’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Forbo | N/A | N/A | N/A |
Lennox International | 12.85% | 198.36% | 23.19% |
Valuation & Earnings
This table compares Forbo and Lennox International’s top-line revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Forbo | N/A | N/A | N/A | $1.20 | 32.38 |
Lennox International | $5.02 billion | 4.10 | $590.10 million | $17.26 | 33.49 |
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Forbo and Lennox International, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Forbo | 0 | 0 | 0 | 0 | N/A |
Lennox International | 1 | 6 | 6 | 0 | 2.38 |
Lennox International has a consensus price target of $543.62, suggesting a potential downside of 5.95%. Given Lennox International’s higher probable upside, analysts plainly believe Lennox International is more favorable than Forbo.
Institutional and Insider Ownership
67.1% of Lennox International shares are owned by institutional investors. 10.4% of Lennox International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.
Dividends
Forbo pays an annual dividend of $0.25 per share and has a dividend yield of 0.7%. Lennox International pays an annual dividend of $4.60 per share and has a dividend yield of 0.8%. Forbo pays out 21.1% of its earnings in the form of a dividend. Lennox International pays out 26.7% 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 increased its dividend for 15 consecutive years. Lennox International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Summary
Lennox International beats Forbo on 12 of the 13 factors compared between the two stocks.
About Forbo
Forbo Holding AG produces and sells floor coverings, building and construction adhesives, and power transmission and conveyor belt solutions in Europe, the Americas, Asia Pacific, and Africa. The company operates through two divisions, Flooring Systems and Movement Systems. The Flooring Systems division develops, produces, and sells linoleum, vinyl floorings, entrance flooring systems, carpet tiles, needle felt floor coverings, Flotex, the washable textile floorings, and building and construction adhesives, as well as various accessory products for laying, processing, cleaning, and care of flooring. This division also provides ready-made adhesives for floor covering installations, parquet flooring, and ceramic tiles, as well as leveling compounds for the construction industry and liquid floors under the trade name of Eurocol. Its products are used in public buildings, department stores, hospitals and other healthcare facilities, schools, libraries, commercial and office spaces, leisure centers, shops, hotels, restaurants, and cafeterias, as well as for applications in the residential market. The Movement Systems division offers conveyor and processing belts, plastic modular belts, power transmission belts, and timing and flat belts under the Siegling brand name. Its products are used in various applications in industry, trade, and the service sector, including conveyor and processing belts in the food industry; treadmill belts in fitness studios; and flat belts in mail distribution centers. Forbo Holding AG was founded in 1928 and is headquartered in Baar, Switzerland.
About Lennox International
Lennox International Inc., together with its subsidiaries, designs, manufactures, and markets a range of 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 and unit heaters under Lennox, Dave Lennox Signature Collection, Armstrong Air, Ducane, AirEase, Concord, MagicPak, Advanced Distributor Products, Allied, Elite Series, Merit Series, Comfort Sync, Healthy Climate, iComfort, ComfortSense, and Lennox Stores name. The Building Climate Solutions segment offers unitary heating and air conditioning equipment, applied systems, controls, installation and service of commercial heating and cooling equipment, variable refrigerant flow commercial, curb, curb adapters, drop box diffusers, HVAC recycling, and salvage service. This segment also provides condensing units, unit coolers, fluid coolers, air cooled condensers, air handlers, and refrigeration rack systems for preserving food and other perishables; and compressor racks and industrial process chillers under the Lennox, Model L, CORE, Enlight, Xion, Energence, Prodigy, Strategos, Raider, Lennox VRF, Lennox National Account Services, Allied Commercial, Elite, AES Industries, Mechanical, and Reclaim, Heatcraft Worldwide and Chandler Refrigeration, Bohn, MAGNA, Larkin, FriguaBohn, IntelliGen, and Interlink brand name. In addition, the company provides small package units, rooftop units, chillers, air handlers, and fan coils. It sells its products and services through direct sales, distributors, and company-owned parts and supplies stores. The company was founded in 1895 and is headquartered in Richardson, Texas.
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