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LII vs OC
Which Stock Would AI Choose? Lennox International Inc. (LII) vs. Owens Corning (OC) Stock Comparison
Key Takeaways
- LII demonstrates superior profitability with a 15.5% profit margin and 75.8% return on equity (ROE, a measure of how effectively a company uses shareholders' equity to generate profits), contrasting OC's negative margins and ROE.
- OC has outperformed YTD with a 13.8% return compared to LII's 1.4%, driven by recent portfolio streamlining via asset sales.
- Both stocks carry high debt/equity ratios around 150%, exposing them to interest rate sensitivity in the building products sector.
- LII trades at a higher P/E ratio (price-to-earnings, 21.5) versus OC's 15.0, reflecting stronger fundamentals but premium valuation.
- Recent market activity shows OC gaining from a $645M glass unit sale, while LII faces upcoming Q1 earnings scrutiny.
- Analyst price targets suggest modest upside for both: ~11% for LII and ~10% for OC.
Introduction
This comparison pits LII, a leader in heating, ventilation, air conditioning, and refrigeration (HVACR) solutions, against OC, a key player in roofing, insulation, and composites within the building products sector. Both companies serve cyclical markets tied to residential and commercial construction, making them relevant for investors tracking housing recovery trends, interest rate shifts, and supply chain dynamics. Traders seeking relative performance insights in recent market activity will find value in evaluating their momentum, valuations, and strategic moves amid broader economic pressures.
LII Overview and Recent Performance
LII (Lennox International Inc.) designs, manufactures, and markets climate control products, including furnaces, air conditioners, and heat pumps for residential and commercial use. With a market cap of approximately $17 billion, the company benefits from energy efficiency demands but faces headwinds from softening housing demand. In recent weeks, shares have traded around $491, within a 52-week range of $434-$689, reflecting volatility from Q4 2025 earnings misses on EPS and revenue. Sentiment has been influenced by anticipated Q1 2026 results on April 29, with projections for year-over-year declines amid inventory adjustments and slower demand. Despite this, robust fundamentals like 15.5% profit margins and high ROE have supported relative stability, though YTD gains lag at 1.4%.
OC Overview and Recent Performance
OC (Owens Corning) produces fiberglass reinforcements, roofing shingles, and insulation materials essential for construction and industrial applications. Its $10 billion market cap underscores diversification across building materials and composites. Shares recently hovered near $126, in a 52-week range of $98-$159, buoyed by strategic shifts like the $645 million sale of its glass unit and an amended agreement for glass reinforcements divestiture. Recent market activity has shown strength, with YTD returns at 13.8% and reports of up to 17% monthly gains, offsetting prior dips tied to Q4 impairments and soft outlooks. Upcoming Q1 earnings on May 6 add focus, as portfolio streamlining aims to enhance margins amid negative TTM profitability.
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Head-to-Head Comparison
LII's focused HVAC business model emphasizes premium, energy-efficient products, contrasting OC's broader exposure to roofing (shingles leadership) and insulation amid construction cycles. Growth drivers differ: LII leverages replacement demand in aging systems, while OC benefits from infrastructure and composites. Recent momentum favors OC with stronger YTD and monthly gains, versus LII's post-earnings pullback. Risk factors align in high leverage (D/E ~150%) and housing sensitivity, but LII's positive EPS contrasts OC's TTM losses from impairments. Sector exposure ties both to building products, yet OC's divestitures signal repositioning. Market sentiment leans positive for OC's catalysts, while LII's premium valuation reflects profitability edge over OC's value-oriented multiple.
Tickeron AI Verdict
Tickeron’s AI models currently favor LII with moderate conviction, citing its consistent profitability, superior ROE, and stable trend positioning despite recent slowdowns. OC's momentum and restructuring provide upside potential, but LII's relative financial strength offers better probability for outperformance in volatile conditions, pending earnings outcomes.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full Disclaimers and Limitations.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is LII is a StrongBuy and OC is a Buy.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
LII’s FA Score shows that 2 FA rating(s) are green whileOC’s FA Score has 1 green FA rating(s).
- LII’s FA Score: 2 green, 3 red.
- OC’s FA Score: 1 green, 4 red.
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
LII’s TA Score shows that 7 TA indicator(s) are bullish while OC’s TA Score has 6 bullish TA indicator(s).
- LII’s TA Score: 7 bullish, 0 bearish.
- OC’s TA Score: 6 bullish, 3 bearish.
Price Growth
LII (@Building Products) experienced а +0.73% price change this week, while OC (@Building Products) price change was +1.88% for the same time period.
The average weekly price growth across all stocks in the @Building Products industry was +0.02%. For the same industry, the average monthly price growth was +1.71%, and the average quarterly price growth was +16.85%.
Reported Earning Dates
LII is expected to report earnings on Jul 23, 2026.
OC is expected to report earnings on Jul 29, 2026.
Industries' Descriptions
@Building Products (+0.02% weekly)The industry manufactures products used in the construction of residential and commercial buildings. The process involves using materials and other products, and processing them to create finished items such as doors, windows, light fittings, floor coverings, climate control products and other building components and home improvement products. Masco Corporation, Allegion PLC and Lennox International Inc. are major manufacturers of such products.
| LII | OC | LII / OC | |
| Capitalization | 17.8B | 9.78B | 182% |
| EBITDA | 1.15B | 782M | 148% |
| Gain YTD | 5.782 | 10.064 | 57% |
| P/E Ratio | 22.75 | 15.02 | 151% |
| Revenue | 5.26B | 9.84B | 53% |
| Total Cash | 50.2M | 272M | 18% |
| Total Debt | 1.96B | 6.02B | 32% |
LII | OC | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 23 | 17 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 33 Fair valued | 13 Undervalued | |
PROFIT vs RISK RATING 1..100 | 56 | 84 | |
SMR RATING 1..100 | 15 | 95 | |
PRICE GROWTH RATING 1..100 | 53 | 51 | |
P/E GROWTH RATING 1..100 | 59 | 54 | |
SEASONALITY SCORE 1..100 | 90 | 50 |
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
OC's Valuation (13) in the Construction Materials industry is in the same range as LII (33) in the Building Products industry. This means that OC’s stock grew similarly to LII’s over the last 12 months.
LII's Profit vs Risk Rating (56) in the Building Products industry is in the same range as OC (84) in the Construction Materials industry. This means that LII’s stock grew similarly to OC’s over the last 12 months.
LII's SMR Rating (15) in the Building Products industry is significantly better than the same rating for OC (95) in the Construction Materials industry. This means that LII’s stock grew significantly faster than OC’s over the last 12 months.
OC's Price Growth Rating (51) in the Construction Materials industry is in the same range as LII (53) in the Building Products industry. This means that OC’s stock grew similarly to LII’s over the last 12 months.
OC's P/E Growth Rating (54) in the Construction Materials industry is in the same range as LII (59) in the Building Products industry. This means that OC’s stock grew similarly to LII’s over the last 12 months.
| LII | OC | |
|---|---|---|
| RSI ODDS (%) | N/A | 3 days ago 79% |
| Stochastic ODDS (%) | 3 days ago 73% | 3 days ago 79% |
| Momentum ODDS (%) | 3 days ago 66% | 3 days ago 68% |
| MACD ODDS (%) | 3 days ago 74% | 3 days ago 64% |
| TrendWeek ODDS (%) | 3 days ago 66% | 3 days ago 72% |
| TrendMonth ODDS (%) | 3 days ago 69% | 3 days ago 72% |
| Advances ODDS (%) | 6 days ago 66% | 3 days ago 67% |
| Declines ODDS (%) | N/A | 7 days ago 60% |
| BollingerBands ODDS (%) | 3 days ago 73% | 3 days ago 71% |
| Aroon ODDS (%) | 3 days ago 66% | 3 days ago 75% |
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LII and
Correlation & Price change
A.I.dvisor indicates that over the last year, LII has been closely correlated with CARR. These tickers have moved in lockstep 74% of the time. This A.I.-generated data suggests there is a high statistical probability that if LII jumps, then CARR could also see price increases.
OC and
Correlation & Price change
A.I.dvisor indicates that over the last year, OC has been closely correlated with BLDR. These tickers have moved in lockstep 72% of the time. This A.I.-generated data suggests there is a high statistical probability that if OC jumps, then BLDR could also see price increases.