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 ($7.1B and $7.1B). Armstrong World Industries, Inc. trades at the lower P/E: 22.8× against 176×. Armstrong World Industries, Inc. grew revenue faster over the last twelve months: 9.11% against −8.25%. Armstrong World Industries, Inc. has the higher net margin (18.4% vs 0.28%) and the higher return on invested capital (21.4% vs 2.21%). 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 22.79 176.44 23.33
P/S 4.12 0.49 2.09
P/B 8.05 1.73 2.85
Price to free cash flow 33.03 27.13 18.42
EV/EBITDA 13.29 12.84 13.29
EV/Sales 4.37 0.81 2.28
Earnings yield 4.39% 0.57% 3.04%
Free cash flow yield 3.03% 3.69% 4.26%

Profitability

Metric AWI BLDR Building Products & Equipment median
Gross margin 39.83% 28.48% 31.88%
Operating margin 25.84% 2.13% 7.18%
Net margin 18.38% 0.28% 4.11%
Free cash flow margin 12.48% 1.81% 6.41%
Return on equity 36.00% 0.97% 5.95%
Return on assets 16.47% 0.36% 3.90%
Return on invested capital 21.35% 2.21% 5.54%

Growth

Metric AWI BLDR Building Products & Equipment median
Revenue growth (TTM) 9.11% (8.25%) 6.27%
EPS growth (last fiscal year) 17.61% (57.06%) (28.29%)
Revenue growth, 5-year CAGR 11.59% 12.16% 4.81%
Net income growth, 5-year CAGR 0.00% 6.78% 0.00%

Health

Metric AWI BLDR Building Products & Equipment median
Debt to equity 0.56 1.13 0.55
Current ratio 1.45 1.85 1.83
Net debt to EBITDA 0.59 3.09 1.45

Dividend

Metric AWI BLDR Building Products & Equipment median
Dividend yield 0.81% — 1.37%
Payout ratio 0.19 — 0.28

Size

Metric AWI BLDR Building Products & Equipment median
Market cap 7.13b 7.05b 3.22b

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