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LII vs TT
Which Stock Would AI Choose? Lennox International (LII) vs. Trane Technologies (TT) Stock Comparison
Key Takeaways
- Both LII and TT operate in the HVAC sector, with recent Q1 2026 earnings beats driving positive sentiment.
- TT shows stronger YTD performance at ~23% versus LII's ~8%, reflecting robust commercial demand and a record backlog.
- LII trades at a lower trailing P/E ratio (~23x) compared to TT (~37x), suggesting relative value in residential-focused growth.
- Recent market activity highlights TT's momentum from commercial HVAC strength, while LII benefits from acquisitions and Building Climate Solutions expansion.
- Both stocks exhibit similar betas (~1.2-1.3), indicating comparable market sensitivity in the cyclical HVAC industry.
- Dividend yields stand at 1.00% for LII and 0.88% for TT, appealing to income-focused investors.
Introduction
This stock comparison examines LII (Lennox International) and TT (Trane Technologies), two leading players in the heating, ventilation, and air conditioning (HVAC) sector. Both companies design and manufacture climate control solutions amid rising demand for energy-efficient systems driven by regulatory pressures and commercial retrofits. Traders seeking short-term momentum and investors eyeing long-term sector growth will find value in analyzing their relative performance, valuation, and recent catalysts. In recent market activity, earnings beats and guidance updates have shaped sentiment, highlighting contrasts in residential versus commercial exposures.
LII Overview and Recent Performance
LII, headquartered in Richardson, Texas, designs, manufactures, and markets HVAC products for residential and commercial markets through its Home Comfort Solutions and Building Climate Solutions segments. The company reported Q1 2026 revenue of $1.1 billion, up 6% year-over-year, driven by acquisitions and Building Climate Solutions growth of 38% (26% organic). Adjusted EPS came in at $3.35, beating estimates by 6.7%, though segment margins dipped 130 basis points (bps) to 14.4% due to factory under-absorption. Recent weeks have seen shares trade around $522, up ~9% over the past month amid stabilized residential demand and raised full-year revenue guidance to ~8%. Sentiment has improved on operational resilience and M&A (mergers and acquisitions) momentum, despite softer home comfort volumes, positioning LII for recovery in a cyclical sector.
TT Overview and Recent Performance
TT, a global climate innovator based in Ireland, provides HVAC and refrigeration solutions via brands like Trane and Thermo King, serving buildings, transport, and residential needs. Q1 2026 results showed $5.0 billion in revenue, up 6% (3% organic), with adjusted continuing EPS of $2.63, up 7% and surpassing forecasts. Bookings surged 27% to support a record $10.7 billion backlog, fueled by Americas commercial HVAC demand. Shares hover near $477, reflecting ~12% monthly gains and YTD outperformance. Guidance was raised for full-year revenue (~9.5%) and EPS ($14.75-$14.95), bolstering confidence amid strong commercial momentum and efficiency gains, though residential softness lingers.
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Head-to-Head Comparison
In the HVAC sector, LII emphasizes residential furnaces, air conditioners, and parts (via direct/distributor sales), while TT balances commercial HVAC, transport refrigeration, and global services with a broader footprint. Growth drivers diverge: LII leverages M&A and Building Climate organic expansion (26% Q1), versus TT's bookings surge and $10.7B backlog signaling sustained commercial tailwinds. Recent momentum favors TT (YTD +23%, 1-year +19%), outpacing LII (YTD +8%, 1-year -8%), tied to sector rotation toward commercial resilience. Valuation contrasts show LII at 3.45x price/sales and ~23x P/E (market cap $18B), more attractive than TT's 5.05x P/S and ~37x P/E ($106B cap), reflecting scale trade-offs. Risks include residential cyclicality for both (similar betas ~1.2), but TT faces higher currency exposure; sentiment tilts to TT on backlog visibility versus LII's margin pressures.
Tickeron AI Verdict
Tickeron’s AI currently favors TT based on superior trend consistency, record backlog as a demand catalyst, and stronger relative YTD positioning amid commercial HVAC strength. While LII offers valuation appeal and acquisition-driven growth, TT's stability and raised guidance suggest higher probability of outperformance in the near term, though sector risks remain balanced.
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 TT is a StrongBuy.
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 1 FA rating(s) are green whileTT’s FA Score has 2 green FA rating(s).
- LII’s FA Score: 1 green, 4 red.
- TT’s FA Score: 2 green, 3 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 5 TA indicator(s) are bullish while TT’s TA Score has 5 bullish TA indicator(s).
- LII’s TA Score: 5 bullish, 5 bearish.
- TT’s TA Score: 5 bullish, 5 bearish.
Price Growth
LII (@Building Products) experienced а -5.09% price change this week, while TT (@Building Products) price change was -4.20% for the same time period.
The average weekly price growth across all stocks in the @Building Products industry was -1.86%. For the same industry, the average monthly price growth was +8.52%, and the average quarterly price growth was +21.34%.
Reported Earning Dates
LII is expected to report earnings on Jul 23, 2026.
TT is expected to report earnings on Aug 05, 2026.
Industries' Descriptions
@Building Products (-1.86% 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 | TT | LII / TT | |
| Capitalization | 16.8B | 99B | 17% |
| EBITDA | 1.15B | 4.26B | 27% |
| Gain YTD | -0.303 | 15.388 | -2% |
| P/E Ratio | 21.44 | 34.23 | 63% |
| Revenue | 5.26B | 21.6B | 24% |
| Total Cash | 50.2M | 1.07B | 5% |
| Total Debt | 1.96B | 4.62B | 42% |
LII | TT | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 77 | 71 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 73 Overvalued | 81 Overvalued | |
PROFIT vs RISK RATING 1..100 | 58 | 13 | |
SMR RATING 1..100 | 15 | 26 | |
PRICE GROWTH RATING 1..100 | 58 | 53 | |
P/E GROWTH RATING 1..100 | 71 | 51 | |
SEASONALITY SCORE 1..100 | 50 | 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.
LII's Valuation (73) in the Building Products industry is in the same range as TT (81) in the null industry. This means that LII’s stock grew similarly to TT’s over the last 12 months.
TT's Profit vs Risk Rating (13) in the null industry is somewhat better than the same rating for LII (58) in the Building Products industry. This means that TT’s stock grew somewhat faster than LII’s over the last 12 months.
LII's SMR Rating (15) in the Building Products industry is in the same range as TT (26) in the null industry. This means that LII’s stock grew similarly to TT’s over the last 12 months.
TT's Price Growth Rating (53) in the null industry is in the same range as LII (58) in the Building Products industry. This means that TT’s stock grew similarly to LII’s over the last 12 months.
TT's P/E Growth Rating (51) in the null industry is in the same range as LII (71) in the Building Products industry. This means that TT’s stock grew similarly to LII’s over the last 12 months.
| LII | TT | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 60% | 1 day ago 50% |
| Stochastic ODDS (%) | 1 day ago 72% | 1 day ago 67% |
| Momentum ODDS (%) | 1 day ago 62% | 1 day ago 55% |
| MACD ODDS (%) | 1 day ago 59% | 1 day ago 60% |
| TrendWeek ODDS (%) | 1 day ago 65% | 1 day ago 59% |
| TrendMonth ODDS (%) | 1 day ago 68% | 1 day ago 64% |
| Advances ODDS (%) | 15 days ago 65% | 7 days ago 67% |
| Declines ODDS (%) | 8 days ago 67% | 1 day ago 56% |
| BollingerBands ODDS (%) | 1 day ago 72% | 1 day ago 76% |
| Aroon ODDS (%) | 1 day ago 67% | 1 day ago 67% |
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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.
| Ticker / NAME | Correlation To LII | 1D Price Change % | ||
|---|---|---|---|---|
| LII | 100% | -3.73% | ||
| CARR - LII | 74% Closely correlated | -4.76% | ||
| IR - LII | 64% Loosely correlated | -2.04% | ||
| OC - LII | 62% Loosely correlated | -3.79% | ||
| FBIN - LII | 60% Loosely correlated | -0.95% | ||
| MAS - LII | 60% Loosely correlated | -1.62% | ||
More | ||||
TT and
Correlation & Price change
A.I.dvisor indicates that over the last year, TT has been closely correlated with IR. These tickers have moved in lockstep 77% of the time. This A.I.-generated data suggests there is a high statistical probability that if TT jumps, then IR could also see price increases.