CSW vs TT vs CARR vs AAON vs LII

For growth investors, AAON, Inc.

(AAON) is the stronger pick with 20. 1% revenue growth year-over-year, versus -3. 3% for Carrier Global Corporation (CARR). Lennox International Inc. (LII) offers the better valuation at 23. 5x trailing P/E (21. 5x forward), making it the more compelling value choice. Analysts rate Carrier Global Corporation (CARR) a "Buy" — based on 26 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, Lennox International Inc.

(LII) is the cheapest at 23. 5x versus AAON, Inc. at 108. 3x. On forward P/E, Lennox International Inc. is actually cheaper at 21. 5x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Trane Technologies plc wins at 1. 05x versus AAON, Inc. 's 12. 51x — a reasonable growth-adjusted valuation.

Over the past 5 years, AAON, Inc.

(AAON) delivered a total return of +221. 6%, compared to +53. 7% for Lennox International Inc. (LII). Over 10 years, the gap is even starker: TT returned +867. 6% versus LII's +305. 3%. 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), Trane Technologies plc (TT) is the lower-risk stock at 0.

98β versus AAON, Inc. 's 1. 79β — meaning AAON is approximately 82% more volatile than TT relative to the S&P 500. On balance sheet safety, CSW Industrials, Inc. (CSW) carries a lower debt/equity ratio of 6% 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 -3. 3% for Carrier Global Corporation (CARR). On earnings-per-share growth, the picture is similar: CSW Industrials, Inc. grew EPS 28. 5% year-over-year, compared to -72. 4% for Carrier Global Corporation. 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.

CSW Industrials, Inc.

(CSW) is the more profitable company, earning 15. 6% net margin versus 6. 9% for Carrier Global Corporation — meaning it keeps 15. 6% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: CSW leads at 20. 6% versus 9. 9% for CARR. At the gross margin level — before operating expenses — CSW leads at 44. 8%, 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, Trane Technologies plc (TT) is the more undervalued stock at a PEG of 1. 05x versus AAON, Inc. 's 12. 51x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Lennox International Inc. (LII) trades at 21. 5x forward P/E versus 68. 0x for AAON, Inc. — 46. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for CSW: 18. 7% to $322. 20.

All stocks in this comparison pay dividends.

Carrier Global Corporation (CARR) offers the highest yield at 1. 4%, versus 0. 3% for AAON, Inc. (AAON).

For long-horizon retirement investors, Trane Technologies plc (TT) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

98), 0. 8% yield, +867. 6% 10Y return). AAON, Inc. (AAON) carries a higher beta of 1. 79 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (TT: +867. 6%, AAON: +668. 2%), 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: CSW is a small-cap quality compounder stock; TT is a mid-cap quality compounder stock; CARR is a mid-cap quality compounder stock; AAON is a mid-cap high-growth stock; LII is a mid-cap quality compounder stock. TT, CARR, LII pay a dividend while CSW, 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.