Armstrong World Industries, Inc. (AWI) vs Builders FirstSource, Inc. (BLDR)

Armstrong World Industries, Inc. and Builders FirstSource, Inc. are both Building Products & Equipment companies. Armstrong World Industries, Inc. and Builders FirstSource, Inc. are of similar size ($6.9B and $6.3B). Armstrong World Industries, Inc. trades at the lower P/E: 22.3× against 64.3×. Armstrong World Industries, Inc. grew revenue faster over the last twelve months: 8.57% against −9.38%. Armstrong World Industries, Inc. has the higher net margin (18.6% vs 0.71%) and the higher return on invested capital (20.6% vs 3.19%). Across the 22 metrics below, Armstrong World Industries, Inc. leads on 13 and Builders FirstSource, Inc. on 9.

Valuation

Metric AWI BLDR Building Products & Equipment median
P/E 22.30 64.32 24.54
P/S 4.08 0.44 2.00
P/B 7.82 1.59 3.02
Price to free cash flow 27.93 9.81 18.49
EV/EBITDA 13.20 10.54 12.63
EV/Sales 4.34 0.75 2.14
Earnings yield 4.48% 1.55% 2.74%
Free cash flow yield 3.58% 10.20% 3.58%

Profitability

Metric AWI BLDR Building Products & Equipment median
Gross margin 40.30% 29.19% 29.19%
Operating margin 25.79% 3.01% 6.84%
Net margin 18.60% 0.71% 4.05%
Free cash flow margin 14.61% 4.49% 8.72%
Return on equity 36.62% 2.51% 9.28%
Return on assets 16.30% 0.90% 2.88%
Return on invested capital 20.58% 3.19% 5.16%

Growth

Metric AWI BLDR Building Products & Equipment median
Revenue growth (TTM) 8.57% (9.38%) 3.11%
EPS growth (last fiscal year) 17.61% (57.06%) —
Revenue growth, 5-year CAGR 11.59% 12.16% 5.37%
Net income growth, 5-year CAGR 0.00% 6.78% 0.00%

Health

Metric AWI BLDR Building Products & Equipment median
Debt to equity 0.59 1.15 0.43
Current ratio 1.52 1.79 1.82
Net debt to EBITDA 0.59 3.09 0.98

Dividend

Metric AWI BLDR Building Products & Equipment median
Dividend yield 0.99% — 1.20%
Payout ratio 0.20 0.00 0.04

Size

Metric AWI BLDR Building Products & Equipment median
Market cap 6.85b 6.30b 1.18b

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