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 $9.8B against $7.1B — 1.4× the size. Owens Corning Inc has negative trailing earnings, so its P/E is not meaningful; Armstrong World Industries, Inc. trades at 22.8×. Armstrong World Industries, Inc. grew revenue faster over the last twelve months: 9.11% against −8.38%. Armstrong World Industries, Inc. has the higher net margin (18.4% vs −4.42%) and the higher return on invested capital (21.4% vs 1.80%). Both pay a dividend; Owens Corning Inc yields more (2.62% 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 22.84 n/m 23.86
P/S 4.13 0.98 2.05
P/B 8.07 2.97 2.97
Price to free cash flow 33.10 11.21 18.37
EV/EBITDA 13.32 8.36 13.32
EV/Sales 4.38 1.46 2.08
Earnings yield 4.38% (4.40%) 3.10%
Free cash flow yield 3.02% 8.92% 4.02%

Profitability

Metric AWI OC Building Products & Equipment median
Gross margin 39.83% 25.03% 31.88%
Operating margin 25.84% 2.33% 7.18%
Net margin 18.38% (4.42%) 4.11%
Free cash flow margin 12.48% 8.79% 7.39%
Return on equity 36.00% (11.18%) 5.95%
Return on assets 16.47% (3.37%) 3.90%
Return on invested capital 21.35% 1.80% 5.54%

Growth

Metric AWI OC Building Products & Equipment median
Revenue growth (TTM) 9.11% (8.38%) 6.27%
EPS growth (last fiscal year) 17.61% (184.40%) (28.29%)
Revenue growth, 5-year CAGR 11.59% 7.45% 4.81%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric AWI OC Building Products & Equipment median
Debt to equity 0.56 1.50 0.55
Current ratio 1.45 1.13 1.83
Net debt to EBITDA 0.59 2.14 1.45

Dividend

Metric AWI OC Building Products & Equipment median
Dividend yield 0.81% 2.62% 1.38%
Payout ratio 0.19 — 0.31

Size

Metric AWI OC Building Products & Equipment median
Market cap 7.13b 9.82b 3.05b

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