BLD vs AAON vs AWI vs LII

For growth investors, AAON, Inc.

(AAON) is the stronger pick with 20. 1% revenue growth year-over-year, versus -2. 7% for Lennox International Inc. (LII). Armstrong World Industries, Inc. (AWI) offers the better valuation at 23. 3x trailing P/E (19. 9x forward), making it the more compelling value choice. Analysts rate TopBuild Corp. (BLD) a "Buy" — based on 29 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Armstrong World Industries, Inc.

(AWI) is the cheapest at 23. 3x versus AAON, Inc. at 100. 2x. On forward P/E, Armstrong World Industries, Inc. is actually cheaper at 19. 9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Lennox International Inc. wins at 1. 13x versus AAON, Inc. 's 12. 01x — a reasonable growth-adjusted valuation.

Over the past 5 years, AAON, Inc.

(AAON) delivered a total return of +196. 3%, compared to +57. 8% for Lennox International Inc. (LII). Over 10 years, the gap is even starker: BLD returned +1219% versus LII's +309. 4%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Armstrong World Industries, Inc.

(AWI) is the lower-risk stock at 0. 82β versus AAON, Inc. 's 1. 83β — meaning AAON is approximately 123% more volatile than AWI relative to the S&P 500. On balance sheet safety, AAON, Inc. (AAON) carries a lower debt/equity ratio of 48% versus 177% for Lennox International Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), AAON, Inc.

(AAON) is pulling ahead at 20. 1% versus -2. 7% for Lennox International Inc. (LII). On earnings-per-share growth, the picture is similar: Armstrong World Industries, Inc. grew EPS 17. 6% year-over-year, compared to -36. 1% for AAON, Inc.. Over a 3-year CAGR, AAON leads at 17. 5% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Armstrong World Industries, Inc.

(AWI) is the more profitable company, earning 19. 0% net margin versus 7. 5% for AAON, Inc. — meaning it keeps 19. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AWI leads at 26. 6% versus 10. 1% for AAON. At the gross margin level — before operating expenses — AWI leads at 40. 6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Lennox International Inc. (LII) is the more undervalued stock at a PEG of 1. 13x versus AAON, Inc. 's 12. 01x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Armstrong World Industries, Inc. (AWI) trades at 19. 9x forward P/E versus 65. 3x for AAON, Inc. — 45. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for BLD: 25. 6% to $537. 80.

In this comparison, LII (0.

9% yield), AWI (0. 8% yield), AAON (0. 3% yield) pay a dividend. BLD does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Armstrong World Industries, Inc.

(AWI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 82), 0. 8% yield, +330. 4% 10Y return). AAON, Inc. (AAON) carries a higher beta of 1. 83 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (AWI: +330. 4%, AAON: +612. 1%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: BLD is a mid-cap quality compounder stock; AAON is a mid-cap high-growth stock; AWI is a small-cap quality compounder stock; LII is a mid-cap quality compounder stock. AWI, LII pay a dividend while BLD, AAON do not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.