Armstrong World Industries, Inc. (AWI) vs Trex Company, Inc. (TREX)

Armstrong World Industries, Inc. and Trex Company, Inc. are both Building Products & Equipment companies. Armstrong World Industries, Inc. is the larger, with a market value of $7.1B against $5.7B — 1.2× the size. Armstrong World Industries, Inc. trades at the lower P/E: 22.8× against 32.8×. Armstrong World Industries, Inc. grew revenue faster over the last twelve months: 9.11% against 8.58%. Armstrong World Industries, Inc. has the higher net margin (18.4% vs 13.9%) and the higher return on invested capital (21.4% vs 13.1%). Across the 22 metrics below, Armstrong World Industries, Inc. leads on 15 and Trex Company, Inc. on 7.

Valuation

Metric AWI TREX Building Products & Equipment median
P/E 22.79 32.85 23.33
P/S 4.12 4.47 2.09
P/B 8.05 5.67 2.85
Price to free cash flow 33.03 29.63 18.42
EV/EBITDA 13.29 18.31 13.29
EV/Sales 4.37 4.61 2.28
Earnings yield 4.39% 3.04% 3.04%
Free cash flow yield 3.03% 3.38% 4.26%

Profitability

Metric AWI TREX Building Products & Equipment median
Gross margin 39.83% 37.09% 31.88%
Operating margin 25.84% 19.17% 7.18%
Net margin 18.38% 13.89% 4.11%
Free cash flow margin 12.48% 15.10% 6.41%
Return on equity 36.00% 17.35% 5.95%
Return on assets 16.47% 11.79% 3.90%
Return on invested capital 21.35% 13.05% 5.54%

Growth

Metric AWI TREX Building Products & Equipment median
Revenue growth (TTM) 9.11% 8.58% 6.27%
EPS growth (last fiscal year) 17.61% (19.55%) (28.29%)
Revenue growth, 5-year CAGR 11.59% 5.92% 4.81%
Net income growth, 5-year CAGR 0.00% 1.63% 0.00%

Health

Metric AWI TREX Building Products & Equipment median
Debt to equity 0.56 0.17 0.55
Current ratio 1.45 1.23 1.83
Net debt to EBITDA 0.59 0.40 1.45

Dividend

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

Size

Metric AWI TREX Building Products & Equipment median
Market cap 7.13b 5.71b 3.22b

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