Financial Comparison: Armstrong World Industries (AWI) versus The Competition

Armstrong World Industries (NYSE:AWI) is one of 93 publicly-traded companies in the “Building Products” industry, but how does it contrast to its peers? We will compare Armstrong World Industries to similar companies based on the strength of its institutional ownership, risk, profitability, dividends, analyst recommendations, valuation and earnings.

Institutional and Insider Ownership

98.9% of Armstrong World Industries shares are owned by institutional investors. Comparatively, 63.6% of shares of all “Building Products” companies are owned by institutional investors. 1.2% of Armstrong World Industries shares are owned by insiders. Comparatively, 10.2% of shares of all “Building Products” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk & Volatility

Armstrong World Industries has a beta of 1.14, suggesting that its stock price is 14% more volatile than the S&P 500. Comparatively, Armstrong World Industries’ peers have a beta of 1.07, suggesting that their average stock price is 7% more volatile than the S&P 500.

Dividends

Armstrong World Industries pays an annual dividend of $1.36 per share and has a dividend yield of 0.8%. Armstrong World Industries pays out 18.2% of its earnings in the form of a dividend. As a group, “Building Products” companies pay a dividend yield of 7.2% and pay out 37.7% of their earnings in the form of a dividend. Armstrong World Industries has increased its dividend for 1 consecutive years.

Profitability

This table compares Armstrong World Industries and its peers’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Armstrong World Industries	18.38%	38.06%	17.16%
Armstrong World Industries Competitors	3.71%	-30.09%	5.11%

Analyst Ratings

This is a breakdown of recent ratings and target prices for Armstrong World Industries and its peers, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Armstrong World Industries	0	2	7	0	2.78
Armstrong World Industries Competitors	740	3931	5061	238	2.48

Armstrong World Industries presently has a consensus target price of $203.12, suggesting a potential upside of 19.40%. As a group, “Building Products” companies have a potential upside of 30.29%. Given Armstrong World Industries’ peers higher possible upside, analysts clearly believe Armstrong World Industries has less favorable growth aspects than its peers.

Earnings & Valuation

This table compares Armstrong World Industries and its peers top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Armstrong World Industries	$1.62 billion	$308.70 million	22.71
Armstrong World Industries Competitors	$4.03 billion	$4.65 billion	36.62

Armstrong World Industries’ peers have higher revenue and earnings than Armstrong World Industries. Armstrong World Industries is trading at a lower price-to-earnings ratio than its peers, indicating that it is currently more affordable than other companies in its industry.

Summary

Armstrong World Industries beats its peers on 8 of the 15 factors compared.

About Armstrong World Industries

Armstrong World Industries, Inc., together with its subsidiaries, engages in the design, manufacture, and sale of ceiling and wall solutions in the Americas. It operates through Mineral Fiber and Architectural Specialties segments. The company offers mineral fiber, fiberglass wool, metal, wood, felt, wood fiber, and glass-reinforced-gypsum; ceiling component products, such as ceiling perimeters and trims, as well as grid products that support drywall ceiling systems; ceilings, walls, and facades for use in commercial settings; and manufactures ceiling suspension system (grid) products. It serves commercial and residential construction markets, as well as renovation of existing buildings sectors. The company sells its products to resale distributors, ceiling system contractors, wholesalers, and retailers comprising large home centers. Armstrong World Industries, Inc. was founded in 1860 and is headquartered in Lancaster, Pennsylvania.