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. is the larger, with a market value of $7.0B against $5.8B — 1.2× the size. Armstrong World Industries, Inc. trades at the lower P/E: 23.0× against 59.4×. 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 23.04 59.40 23.15
P/S 4.22 0.41 2.02
P/B 8.08 1.47 2.81
Price to free cash flow 28.85 9.06 16.84
EV/EBITDA 13.61 10.07 12.85
EV/Sales 4.48 0.72 2.04
Earnings yield 4.34% 1.68% 2.76%
Free cash flow yield 3.47% 11.04% 4.23%

Profitability

Metric AWI BLDR Building Products & Equipment median
Gross margin 40.30% 29.19% 29.19%
Operating margin 25.79% 3.01% 6.99%
Net margin 18.60% 0.71% 4.05%
Free cash flow margin 14.61% 4.49% 7.60%
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%) (34.13%)
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 0.81% — 1.43%
Payout ratio 0.19 — 0.29

Size

Metric AWI BLDR Building Products & Equipment median
Market cap 7.04b 5.78b 1.17b

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