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

AAON, Inc. and Armstrong World Industries, Inc. are both Building Products & Equipment companies. AAON, Inc. and Armstrong World Industries, Inc. are of similar size ($7.0B and $6.9B). Armstrong World Industries, Inc. trades at the lower P/E: 22.3× against 45.7×. AAON, Inc. grew revenue faster over the last twelve months: 53.5% against 8.57%. Armstrong World Industries, Inc. has the higher net margin (18.6% vs 8.24%) and the higher return on invested capital (20.6% vs 9.31%). Both pay a dividend; Armstrong World Industries, Inc. yields more (0.99% vs 0.51%). 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 45.69 22.30 24.54
P/S 3.79 4.08 2.00
P/B 7.25 7.82 3.02
Price to free cash flow n/m 27.93 18.49
EV/EBITDA 25.90 13.20 12.63
EV/Sales 4.01 4.34 2.14
Earnings yield 2.19% 4.48% 2.74%
Free cash flow yield (1.77%) 3.58% 3.58%

Profitability

Metric AAON AWI Building Products & Equipment median
Gross margin 25.57% 40.30% 29.19%
Operating margin 11.05% 25.79% 6.84%
Net margin 8.24% 18.60% 4.05%
Free cash flow margin (6.71%) 14.61% 8.72%
Return on equity 17.28% 36.62% 9.28%
Return on assets 9.76% 16.30% 2.88%
Return on invested capital 9.31% 20.58% 5.16%

Growth

Metric AAON AWI Building Products & Equipment median
Revenue growth (TTM) 53.53% 8.57% 3.11%
EPS growth (last fiscal year) (36.14%) 17.61% —
Revenue growth, 5-year CAGR 22.89% 11.59% 5.37%
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 0.59 0.43
Current ratio 3.01 1.52 1.82
Net debt to EBITDA 1.76 0.59 0.98

Dividend

Metric AAON AWI Building Products & Equipment median
Dividend yield 0.51% 0.99% 1.20%
Payout ratio 0.18 0.20 0.04

Size

Metric AAON AWI Building Products & Equipment median
Market cap 6.99b 6.85b 1.18b

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