Critical Analysis: Armstrong World Industries (AWI) versus AptarGroup (ATR)
Armstrong World Industries (NYSE: AWI) and AptarGroup (NYSE:ATR) are both mid-cap construction companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, earnings, valuation, dividends, risk, profitability and institutional ownership.
This table compares Armstrong World Industries and AptarGroup’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Armstrong World Industries||12.77%||41.95%||7.84%|
AptarGroup pays an annual dividend of $1.28 per share and has a dividend yield of 1.4%. Armstrong World Industries does not pay a dividend. AptarGroup pays out 37.2% of its earnings in the form of a dividend. AptarGroup has increased its dividend for 5 consecutive years.
Institutional & Insider Ownership
92.2% of AptarGroup shares are held by institutional investors. 1.7% of Armstrong World Industries shares are held by company insiders. Comparatively, 3.4% of AptarGroup shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.
Risk & Volatility
Armstrong World Industries has a beta of 1.67, meaning that its share price is 67% more volatile than the S&P 500. Comparatively, AptarGroup has a beta of 0.78, meaning that its share price is 22% less volatile than the S&P 500.
Valuation & Earnings
This table compares Armstrong World Industries and AptarGroup’s top-line revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Armstrong World Industries||$893.60 million||3.39||$154.80 million||$3.02||18.91|
|AptarGroup||$2.47 billion||2.37||$220.03 million||$3.44||27.42|
AptarGroup has higher revenue and earnings than Armstrong World Industries. Armstrong World Industries is trading at a lower price-to-earnings ratio than AptarGroup, indicating that it is currently the more affordable of the two stocks.
This is a summary of recent recommendations and price targets for Armstrong World Industries and AptarGroup, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Armstrong World Industries||1||6||4||0||2.27|
Armstrong World Industries presently has a consensus price target of $57.13, indicating a potential upside of 0.04%. AptarGroup has a consensus price target of $84.14, indicating a potential downside of 10.78%. Given Armstrong World Industries’ stronger consensus rating and higher possible upside, equities analysts plainly believe Armstrong World Industries is more favorable than AptarGroup.
Armstrong World Industries beats AptarGroup on 9 of the 17 factors compared between the two stocks.
Armstrong World Industries Company Profile
Armstrong World Industries, Inc. designs, manufactures, and sells ceiling systems primarily for use in the construction and renovation of residential and commercial buildings worldwide. It principally offers mineral fiber, fiberglass wool, and metal ceiling systems. The company produces suspended mineral fiber and soft fiber ceiling systems; suspension system (grid) and ceiling component products; and acoustical ceiling, wall, and structural solutions. It sells its commercial ceiling materials and accessories to resale distributors and ceiling system contractors; residential ceiling products to wholesalers and retailers, such as large home centers; and architectural specialties products to resale distributors and ceiling systems contractors. The company was incorporated in 1891 and is headquartered in Lancaster, Pennsylvania.
AptarGroup Company Profile
AptarGroup, Inc. is a provider of a range of packaging, dispensing and sealing solutions, primarily for the beauty, personal care, homecare, prescription drug, consumer healthcare, injectables, food and beverage markets. The Company has manufacturing facilities located throughout the world, including North America, Europe, Asia and South America. The Company operates through three segments: Beauty + Home, Pharma and Food + Beverage. It offers various dispensing and sealing solutions. Its primary products are dispensing pumps, closures, aerosol valves and elastomeric primary packaging components. Its elastomeric components also include pre filled syringe components, such as plungers, needle shields, tip caps and cartridges, as well as dropper bulbs and syringe plungers. Its Beauty + Home segment primarily sells pumps, closures, aerosol valves, accessories and sealing solutions to the personal care and home care markets, and pumps and decorative components to the beauty market.
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