WMS vs AAON vs LII vs NVR

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). NVR, Inc. (NVR) offers the better valuation at 13. 8x trailing P/E (16. 7x forward), making it the more compelling value choice. Analysts rate AAON, Inc. (AAON) a "Buy" — based on 5 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, NVR, Inc.

(NVR) is the cheapest at 13. 8x versus AAON, Inc. at 100. 2x. On forward P/E, NVR, Inc. is actually cheaper at 16. 7x. 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 +15. 3% for NVR, Inc. (NVR). Over 10 years, the gap is even starker: AAON returned +612. 1% versus NVR's +264. 9%. 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), NVR, Inc.

(NVR) is the lower-risk stock at 0. 68β versus AAON, Inc. 's 1. 83β — meaning AAON is approximately 169% more volatile than NVR relative to the S&P 500. On balance sheet safety, NVR, Inc. (NVR) carries a lower debt/equity ratio of 31% 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: Lennox International Inc. grew EPS -1. 4% 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.

Advanced Drainage Systems, Inc.

(WMS) is the more profitable company, earning 15. 5% net margin versus 7. 5% for AAON, Inc. — meaning it keeps 15. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: WMS leads at 22. 6% versus 10. 1% for AAON. At the gross margin level — before operating expenses — WMS leads at 37. 7%, 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, NVR, Inc. (NVR) trades at 16. 7x forward P/E versus 65. 3x for AAON, Inc. — 48. 6x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for WMS: 40. 7% to $202. 67.

In this comparison, LII (0.

9% yield), WMS (0. 4% yield), AAON (0. 3% yield) pay a dividend. NVR does not pay a meaningful dividend and should not be held primarily for income.

For long-horizon retirement investors, Lennox International Inc.

(LII) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1. 23), 0. 9% yield, +309. 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 (LII: +309. 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.

These companies operate in different sectors (WMS (Industrials) and AAON (Industrials) and LII (Industrials) and NVR (Consumer Cyclical)), which means they face different economic cycles, regulatory environments, and macro sensitivities — making direct comparison nuanced.

In terms of investment character: WMS is a mid-cap quality compounder stock; AAON is a mid-cap high-growth stock; LII is a mid-cap quality compounder stock; NVR is a mid-cap deep-value stock. LII pays a dividend while WMS, AAON, NVR 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.