AAON, Inc. (AAON) vs Armstrong World Industries, Inc. (AWI)

AAON, Inc. and Armstrong World Industries, Inc. are both Building Products & Equipment companies. Armstrong World Industries, Inc. is the larger, with a market value of $7.1B against $4.5B — 1.6× the size. Armstrong World Industries, Inc. trades at the lower P/E: 22.8× against 27.7×. AAON, Inc. grew revenue faster over the last twelve months: 53.5% against 9.11%. Armstrong World Industries, Inc. has the higher net margin (18.4% vs 8.24%) and the higher return on invested capital (21.4% vs 9.31%). Both pay a dividend; Armstrong World Industries, Inc. yields more (0.81% vs 0.74%). Across the 22 metrics below, Armstrong World Industries, Inc. leads on 14 and AAON, Inc. on 8.

Valuation

Metric AAON AWI Building Products & Equipment median
P/E 27.72 22.79 23.33
P/S 2.30 4.12 2.09
P/B 4.40 8.05 2.85
Price to free cash flow n/m 33.03 18.42
EV/EBITDA 16.27 13.29 13.29
EV/Sales 2.52 4.37 2.28
Earnings yield 3.61% 4.39% 3.04%
Free cash flow yield (2.92%) 3.03% 4.26%

Profitability

Metric AAON AWI Building Products & Equipment median
Gross margin 25.57% 39.83% 31.88%
Operating margin 11.05% 25.84% 7.18%
Net margin 8.24% 18.38% 4.11%
Free cash flow margin (6.71%) 12.48% 6.41%
Return on equity 17.28% 36.00% 5.95%
Return on assets 9.76% 16.47% 3.90%
Return on invested capital 9.31% 21.35% 5.54%

Growth

Metric AAON AWI Building Products & Equipment median
Revenue growth (TTM) 53.53% 9.11% 6.27%
EPS growth (last fiscal year) (36.14%) 17.61% (28.29%)
Revenue growth, 5-year CAGR 22.89% 11.59% 4.81%
Net income growth, 5-year CAGR 6.37% 0.00% 0.00%

Health

Metric AAON AWI Building Products & Equipment median
Debt to equity 0.43 0.56 0.55
Current ratio 3.01 1.45 1.83
Net debt to EBITDA 1.76 0.59 1.45

Dividend

Metric AAON AWI Building Products & Equipment median
Dividend yield 0.74% 0.81% 1.37%
Payout ratio 0.21 0.19 0.28

Size

Metric AAON AWI Building Products & Equipment median
Market cap 4.49b 7.13b 3.22b

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