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ATI vs LII

ATI
ATI Inc.
NEUTRAL
Price
$123.55
Market Cap
$17.03B
Sector
Industrials
AI Confidence
68%
LII
Lennox International Inc.
BEARISH
Price
$495.52
Market Cap
$17.25B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
ATI
39.85
LII
21.74
Forward P/E
ATI
31.85
LII
18.64
P/B Ratio
ATI
9.83
LII
14.82
P/S Ratio
ATI
3.72
LII
3.32
EV/EBITDA
ATI
23.86
LII
16.44

Profitability

Gross Margin
ATI
21.87%
LII
33.39%
Operating Margin
ATI
15.11%
LII
19.75%
Profit Margin
ATI
9.71%
LII
15.51%
ROE
ATI
24.62%
LII
75.83%
ROA
ATI
7.88%
LII
16.92%

Growth

Revenue Growth
ATI
7.1%
LII
-11.2%
Earnings Growth
ATI
36.2%
LII
-17.9%

Financial Health

Debt/Equity
ATI
1.04
LII
1.52
Current Ratio
ATI
2.5
LII
1.6
Quick Ratio
ATI
1.11
LII
0.52

Dividends

Dividend Yield
ATI
--
LII
1.05%
Payout Ratio
ATI
0.0%
LII
22.16%

AI Verdict

ATI NEUTRAL

ATI has a weak financial health profile with a Piotroski F-Score of 4/9, indicating borderline stability, and lacks an Altman Z-Score to confirm solvency. Despite strong recent earnings growth (YoY EPS +41.7%) and solid ROE of 24.62%, the stock trades at a steep valuation (P/E 39.85, Price/Book 9.83) well above the Graham Number of $29.6, suggesting significant growth expectations are already priced in. Insider selling activity worth $20.38M over the past six months signals caution, while analysts maintain a strong_buy consensus with a $133.00 target. The combination of rich multiples, weak financial health signals, and negative insider sentiment offsets strong profitability and growth metrics, resulting in a neutral outlook.

Strengths
Strong year-over-year earnings growth (EPS +41.7%) and consistent earnings beat history (3 of last 4 quarters)
High return on equity (ROE) of 24.62%, significantly above sector average of 5.57%
Solid operating margin of 15.11% and improving profitability trend over recent quarters
Risks
Piotroski F-Score of 4/9 indicates weak financial health and below-average stability
Extremely high valuation metrics: P/E of 39.85 vs sector average of 53.38, but with much lower growth than peers like AVAV
Insiders have been aggressively selling ($20.38M in sales, 0 buys) over the last 6 months
LII BEARISH

LII exhibits significant financial deterioration, highlighted by a weak Piotroski F-Score of 3/9 and a massive valuation gap where the current price ($495.52) trades at a severe premium to both its Graham Number ($130.92) and Intrinsic Value ($159.53). While the company maintains high ROE and profitability, these are offset by negative YoY revenue (-11.20%) and earnings growth (-17.90%). The combination of bearish insider sentiment, a failing technical trend, and poor liquidity (Quick Ratio 0.52) suggests a high risk of price correction.

Strengths
Strong Return on Equity (ROE) of 75.83%
Healthy operating margins at 19.75%
Sustainable dividend payout ratio of 22.16%
Risks
Severe overvaluation relative to defensive fair value (Graham Number)
Negative growth trajectory in both revenue and earnings
Weak financial health as indicated by Piotroski F-Score (3/9)

Compare Another Pair

ATI vs LII: Head-to-Head Comparison

This page compares ATI Inc. (ATI) and Lennox International Inc. (LII) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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