MILLBURN, N.J. (Stockpickr) -- I am in the process of renovating a building previously operated as a Chinese Restaurant and transforming it into a new themed restaurant. Since purchasing the building, located in the Village of Lake George, N.Y., my business partners and I have had to replace nearly all existing equipment and upgrade the entire building, which was in a state of disrepair.This is no small undertaking. We have had to essentially start from scratch with the four walls and two ceilings that were in existence. With a budget in mind and careful planning, we are well into the process of renovating the building in anticipation of an April 30 grand opening. The project started in the dead of winter in one of the coldest regions of the Northeast, so it was imperative to begin by installing a new HVAC system. We sent the project out to several contractors for bids. The winning bid was submitted by a small independent business owner. Related: Beverage Stocks Worth Drinking To This article will explore some several stocks related to HVAC systems. Lennox International When it comes to HVAC, there are two companies, both of which are public, that provide some of the best products in this segment: Johnson Controls ( JCI - Get Report) and Lennox International ( LII - Get Report). Lennox International specializes in HVAC and refrigeration equipment for both commercial and residential use. Despite suffering somewhat from the housing and credit crisis of 2007-2009, Lennox' business has recovered and is set to grow earnings at a mid-20% rates over the next two years. The stock sells for 21 times trailing earnings and 17 times forward earnings, both at a discount to that mid-20% growth rate in earnings that is expected. Should we have a pickup in commercial or residential construction or renovation, then earnings growth rates for Lennox are bound to be adjusted higher. The company has a good balance sheet with a small amount of debt, about $300 million offset by about $170 million in cash and equivalents. In addition, Lennox pays an annual dividend of 60 cents per share, equating to a 1.2% annual payout.
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