Armstrong World Industries, Inc. (AWI) vs Owens Corning Inc (OC)

Armstrong World Industries, Inc. and Owens Corning Inc are both Building Products & Equipment companies. Owens Corning Inc is the larger, with a market value of $9.0B against $7.0B — 1.3× the size. Owens Corning Inc has negative trailing earnings, so its P/E is not meaningful; Armstrong World Industries, Inc. trades at 23.0×. Armstrong World Industries, Inc. grew revenue faster over the last twelve months: 8.57% against −7.23%. Armstrong World Industries, Inc. has the higher net margin (18.6% vs −6.81%) and the higher return on invested capital (20.6% vs 0.36%). Both pay a dividend; Owens Corning Inc yields more (3.41% vs 0.81%). Across the 21 metrics below, Armstrong World Industries, Inc. leads on 14 and Owens Corning Inc on 7.

Valuation

Metric AWI OC Building Products & Equipment median
P/E 23.04 n/m 23.15
P/S 4.22 0.92 2.02
P/B 8.08 2.38 2.81
Price to free cash flow 28.85 9.32 16.84
EV/EBITDA 13.61 7.19 12.85
EV/Sales 4.48 1.41 2.04
Earnings yield 4.34% (7.15%) 2.76%
Free cash flow yield 3.47% 10.73% 4.23%

Profitability

Metric AWI OC Building Products & Equipment median
Gross margin 40.30% 25.98% 29.19%
Operating margin 25.79% 0.51% 6.99%
Net margin 18.60% (6.81%) 4.05%
Free cash flow margin 14.61% 9.87% 7.60%
Return on equity 36.62% (14.89%) 9.28%
Return on assets 16.30% (4.93%) 2.88%
Return on invested capital 20.58% 0.36% 5.16%

Growth

Metric AWI OC Building Products & Equipment median
Revenue growth (TTM) 8.57% (7.23%) 3.11%
EPS growth (last fiscal year) 17.61% (184.40%) (34.13%)
Revenue growth, 5-year CAGR 11.59% 7.45% 5.37%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric AWI OC Building Products & Equipment median
Debt to equity 0.59 1.34 0.43
Current ratio 1.52 1.16 1.82
Net debt to EBITDA 0.59 2.14 0.98

Dividend

Metric AWI OC Building Products & Equipment median
Dividend yield 0.81% 3.41% 1.43%
Payout ratio 0.19 — 0.29

Size

Metric AWI OC Building Products & Equipment median
Market cap 7.04b 8.99b 1.17b

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