Compare Stocks › LII vs LLY

Lennox International Inc. (LII) vs Eli Lilly and Company (LLY): Which Is the Better Buy in 2026?

As of 2026-06-19, LII is fairly valued at $532, with a DCF intrinsic value of $506 and a margin of safety of -5%. LLY is fairly valued at $1099, with an intrinsic value of $1143 and a margin of safety of 4%. Of the two, LLY has the wider margin of safety.

LII

Lennox International Inc.

$532.43

LLY

Eli Lilly and Company

$1098.57

Rewards

LII

★Lennox International Inc. has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
★Lennox International Inc. scores 74/100 on the Economic Moat Score (Wide Moat), with reinvestment efficiency as the strongest competitive dimension.
★Free cash flow has grown at a 47.0% CAGR over the past 4 years, demonstrating strong earnings power growth.

LLY

★Eli Lilly and Company has maintained ROIC above 15% for 4 consecutive years, indicating a durable competitive advantage.
★Gross margin of 82.8% indicates strong pricing power — typical of businesses with significant intellectual property or brand strength.
★Eli Lilly and Company scores 73/100 on the Economic Moat Score (Wide Moat), with roic consistency as the strongest competitive dimension.

Risks

LII

⚠High leverage (1.57x net debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
⚠Beneish M-Score of -1.37 flags financial patterns consistent with potential earnings manipulation — warrants further investigation.
⚠13 insider sales with no purchases over the past 12 months — a persistent pattern of insider selling.

LLY

⚠FCF yield of 0.9% is below 3%, meaning the market is pricing in substantial future growth to justify the current price.
⚠Insiders have sold $18.6M worth of stock in the past 3 months — significant insider liquidation.

Key Valuation Metrics

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LII

LLY

Valuation

$638.80M

Free Cash Flow

$9.16B

3.45%

FCF Yield

0.93%

23.65

Trailing P/E

39.00

19.95

Forward P/E

24.69

Quality & Moat

18.77%

ROIC

37.80%

76.79%

ROE

107.46%

33.19%

Gross Margin

82.83%

1.52

PEG Ratio

1.50

Balance Sheet Safety

1.57

Net Debt / Equity

1.22

N/A

Interest Coverage

N/A

1.65

Net Debt / EBITDA

1.05

1.03%

Dividend Yield

0.56%

LII: 4Ties: 2LLY: 6

LIILLY

Historical Fundamentals

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LII

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

LLY

$1 Retained Earnings Test

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LII

$4.89

created per $1 retained over 3 years

Exceptional Value Creator

Σ Retained

$1.72B

Δ Market Cap

+$8.41B

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

LLY

$27.49

created per $1 retained over 3 years

Exceptional Value Creator

Σ Retained

$22.34B

Δ Market Cap

+$614.01B

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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LII

5.2% Overvalued

Price is 5.2% above estimated fair value

Current Price: $532.43

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $506.12

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

LLY

3.9% Margin of Safety

Price is 3.9% below estimated fair value

Current Price: $1098.57

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Fair Value: $1143.11

Strongly undervalued

Undervalued

Fairly valued

Overvalued

Strongly overvalued

Reverse DCF — Market-Implied Growth

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LII

What growth rate is the market pricing in at $532?

+10.9%

Market-Implied Owner Earnings Growth

Standard FCF implies +14.1%

The market implies +10.9% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding +14.1%, reflecting heavy growth investment expected to generate future returns.

LLY

What growth rate is the market pricing in at $1099?

+20.0%

Market-Implied Owner Earnings Growth

Standard FCF implies +31.4%

The market implies +20.0% Owner Earnings growth, below historical trends — potential opportunity.

Standard FCF implies a more demanding +31.4%, reflecting heavy growth investment expected to generate future returns.

Economic Moat Score

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LII

74/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

Wide moat driven primarily by reinvestment efficiency. Margin Stability is the area most vulnerable to competitive pressure.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

LLY

73/100

Wide Moat

70+ Wide · 40-69 Narrow · <40 None

Wide moat driven primarily by roic consistency. Reinvestment Efficiency is the area most vulnerable to competitive pressure.

Forensic Accounting

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LII

-1.37

Likely Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

LLY

-1.83

Possible Manipulator

Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Ownership Breakdown

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LII

Insiders 9.6%Institutions 79.4%Retail & Other 11.0%

No. of Institutional Holders939

High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

LLY

Insiders 0.2%Institutions 85.3%Retail & Other 14.5%

No. of Institutional Holders5,580

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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LII

Buys (3M)

Buys (12M)

No open market insider purchases found.

Open market purchases · includes direct & indirect ownership · excludes option exercises

LLY

Buys (3M)

Buys (12M)

Total value (12M): $4.54M

MONTARCE LUCAS E

Chief Financial Officer

$494,627

@ $691.79 · 2025-08-15

VAN NAARDEN JACOB S.

Officer

$647,360

@ $647.36 · 2025-08-13

ALVAREZ RALPH

Director

$500,473

@ $660.25 · 2025-08-13

FYRWALD J. ERIK

Director

$1.01M

@ $642.33 · 2025-08-12

RICKS DAVID A

Chief Executive Officer

$1.05M

@ $644.77 · 2025-08-12

SKOVRONSKY DANIEL

Officer

$634,405

@ $634.40 · 2025-08-12

SULZBERGER GABRIELLE

Director

$75,018

@ $641.18 · 2025-08-12

JACKSON JAMERE

Director

$127,913

@ $639.57 · 2025-08-08

Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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LII

Sells (3M)

Sells (12M)

Total value (12M): $24.99M

KOSEL CHRIS A

Officer

$529,001

@ $544.80 · 2026-05-06

WALL SHANE D.

Director

$54,001

@ $540.01 · 2026-02-25

TESKE TODD J

Director

$373,415

@ $533.45 · 2026-02-04

KOSEL CHRIS A

Officer

$136,271

@ $536.50 · 2026-02-04

TESKE TODD J

Director

$295,110

@ $491.85 · 2025-11-11

KOSEL CHRIS A

Officer

$177,558

@ $591.86 · 2025-08-22

QUINTOS KAREN H.

Director

$657,665

@ $607.82 · 2025-08-20

QUINTOS KAREN H.

Director

$222,394

@ $609.30 · 2025-08-20

SESSA DANIEL M

Officer

$1.86M

@ $670.04 · 2025-07-23

NORRIS JOHN W III

Director

$14.88M

@ $666.20 · 2025-07-23

NORRIS JOHN W III

Director

$1.96M

@ $613.72 · 2025-07-10

NORRIS JOHN W III

Director

$1.93M

@ $606.00 · 2025-07-03

NORRIS JOHN W III

Director

$1.91M

@ $600.00 · 2025-07-01

KOSEL CHRIS A

Officer

$289,140

@ $568.06 · 2025-05-07

KOSEL CHRIS A

Officer

$124,975

@ $644.20 · 2025-02-21

TORRES JOHN D

Officer

$1.04M

@ $582.55 · 2025-02-04

BUCK SHERRY L

Director

$330,370

@ $660.74 · 2024-11-27

TESKE TODD J

Director

$337,760

@ $675.52 · 2024-11-25

KOSEL CHRIS A

Officer

$125,098

@ $625.49 · 2024-11-13

NASSAB JOSEPH

Officer

$398,091

@ $619.12 · 2024-11-05

BEDAPUDI PRAKASH

Chief Technology Officer

$596,370

@ $618.00 · 2024-11-05

WALL SHANE D.

Director

$199,215

@ $612.97 · 2024-10-28

TORRES JOHN D

Officer

$360,789

@ $620.98 · 2024-10-25

BEDAPUDI PRAKASH

Chief Technology Officer

$3.14M

@ $584.00 · 2024-08-28

BUCK SHERRY L

Director

$291,735

@ $583.47 · 2024-08-23

QUINTOS KAREN H.

Director

$1.02M

@ $574.87 · 2024-08-20

NORRIS JOHN W III

Director

$976,412

@ $574.36 · 2024-08-20

TESKE TODD J

Director

$1.15M

@ $574.05 · 2024-08-19

BEDARD GARY S

Officer

$685,351

@ $576.41 · 2024-08-19

WALL SHANE D.

Director

$201,831

@ $576.66 · 2024-08-19

BEDAPUDI PRAKASH

Chief Technology Officer

$1.98M

@ $578.00 · 2024-08-19

NASSAB JOSEPH

Officer

$664,195

@ $570.12 · 2024-08-16

SESSA DANIEL M

Officer

$7.68M

@ $570.97 · 2024-08-16

TORRES JOHN D

Officer

$4.12M

@ $571.21 · 2024-08-16

KOSEL CHRIS A

Officer

$1.00M

@ $573.79 · 2024-07-26

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

LLY

Sells (3M)

Sells (12M)

Total value (12M): $3.86B

YUFFA ILYA

Officer

$2.88M

@ $1150.77 · 2026-06-10

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$15.75M

@ $995.36 · 2026-05-06

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$322.38M

@ $1103.48 · 2026-01-07

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$1.51M

@ $1085.01 · 2026-01-05

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$3.90M

@ $1085.04 · 2025-12-29

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$2.85M

@ $1085.17 · 2025-12-24

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$260,409

@ $1085.04 · 2025-12-23

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$161.08M

@ $1095.35 · 2025-11-25

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$17.34M

@ $1109.30 · 2025-11-25

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$152.06M

@ $1068.52 · 2025-11-24

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$111.50M

@ $1058.66 · 2025-11-21

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$39.07M

@ $1051.66 · 2025-11-20

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$176.10M

@ $1051.17 · 2025-11-19

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$62.31M

@ $1034.78 · 2025-11-18

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$10.19M

@ $1030.68 · 2025-11-17

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$183.33M

@ $1028.25 · 2025-11-14

ZAKROWSKI DONALD A

Officer

$1.01M

@ $1010.50 · 2025-11-13

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$48.02M

@ $1030.26 · 2025-11-13

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$308.41M

@ $1011.18 · 2025-11-12

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$279.35M

@ $986.64 · 2025-11-11

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$16.41M

@ $972.52 · 2025-11-10

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$167.09M

@ $933.26 · 2025-11-05

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$38.47M

@ $951.56 · 2025-11-05

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$479,038

@ $910.72 · 2025-11-04

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$266.65M

@ $888.83 · 2025-11-03

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$260.17M

@ $863.35 · 2025-10-31

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$3.16M

@ $863.24 · 2025-10-10

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$9.04M

@ $852.49 · 2025-10-09

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$86.23M

@ $850.27 · 2025-10-08

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$22.72M

@ $848.01 · 2025-10-07

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$137.04M

@ $850.22 · 2025-10-06

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$161.22M

@ $837.93 · 2025-10-03

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$92.50M

@ $821.55 · 2025-10-02

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$107.36M

@ $794.15 · 2025-10-01

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$177.29M

@ $821.47 · 2025-10-01

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$86.79M

@ $763.39 · 2025-09-30

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$18.06M

@ $763.09 · 2025-09-19

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$81.53M

@ $764.65 · 2025-09-18

ZAKROWSKI DONALD A

Officer

$734,930

@ $734.93 · 2025-08-28

YUFFA ILYA

Officer

$783,762

@ $627.01 · 2025-08-11

LILLY ENDOWMENT, INC.

Beneficial Owner of more than 10% of a Class of Security

$225.42M

@ $805.07 · 2025-07-24

ZAKROWSKI DONALD A

Officer

$716,410

@ $716.41 · 2025-05-27

YUFFA ILYA

Officer

$936,550

@ $749.24 · 2025-05-14

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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LII

😐Neutral(43/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

LLY

😏Greed(61/100)

"Market is optimistic — be cautious and ensure you have a margin of safety"

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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LII

⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (43)

LLY

⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Greed (61)

View LII Full Analysis View LLY Full Analysis

Frequently Asked Questions: LII vs LLY

Is Lennox International Inc. or Eli Lilly and Company more undervalued in 2026?▼

Based on our discounted cash flow model, LLY trades at a 3.9% margin of safety (intrinsic value $1143 vs. price $1099), compared to LII's -5.2% margin of safety (intrinsic $506 vs. $532).

Which stock has a wider economic moat, Lennox International Inc. or Eli Lilly and Company?▼

LII scores 74/100 (Wide moat), while LLY scores 73/100 (Wide moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

Which company has better free cash flow, Lennox International Inc. or Eli Lilly and Company?▼

Lennox International Inc. (LII) generates a 3.4% free cash flow yield, compared to Eli Lilly and Company's 0.9%. A higher FCF yield means the business converts more of its market value into cash that can be returned to shareholders or reinvested.

Which stock has higher return on invested capital, Lennox International Inc. or Eli Lilly and Company?▼

LLY earns 37.8% ROIC versus LII's 18.8%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

Which dividend is safer, Lennox International Inc.'s or Eli Lilly and Company's?▼

LII's dividend earns a safety score of 94/100 (Very Safe), compared to LLY's 64/100 (Safe). LII has raised its dividend for 3 consecutive years.

Does Lennox International Inc. have accounting red flags?▼

LII's Beneish M-Score of -1.4 flags it as a likely earnings manipulator (above the -1.78 threshold). By contrast, LLY scores -1.8, within the normal range. The Beneish model detects aggressive accounting through eight financial ratios.