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 $6.9B against $4.4B — 1.6× the size. Armstrong World Industries, Inc. trades at the lower P/E: 22.3× against 26.7×. Armstrong World Industries, Inc. grew revenue faster over the last twelve months: 8.57% against 6.97%. Armstrong World Industries, Inc. has the higher net margin (18.6% vs 14.7%) and the higher return on invested capital (20.6% vs 12.1%). Across the 22 metrics below, Armstrong World Industries, Inc. leads on 13 and Trex Company, Inc. on 9.

Valuation

Metric AWI TREX Building Products & Equipment median
P/E 22.30 26.66 24.54
P/S 4.08 3.79 2.00
P/B 7.82 4.54 3.02
Price to free cash flow 27.93 23.06 18.49
EV/EBITDA 13.20 15.38 12.63
EV/Sales 4.34 4.00 2.14
Earnings yield 4.48% 3.75% 2.74%
Free cash flow yield 3.58% 4.34% 3.58%

Profitability

Metric AWI TREX Building Products & Equipment median
Gross margin 40.30% 38.20% 29.19%
Operating margin 25.79% 20.17% 6.84%
Net margin 18.60% 14.68% 4.05%
Free cash flow margin 14.61% 16.45% 8.72%
Return on equity 36.62% 17.74% 9.28%
Return on assets 16.30% 11.21% 2.88%
Return on invested capital 20.58% 12.12% 5.16%

Growth

Metric AWI TREX Building Products & Equipment median
Revenue growth (TTM) 8.57% 6.97% 3.11%
EPS growth (last fiscal year) 17.61% (15.31%) —
Revenue growth, 5-year CAGR 11.59% 5.92% 5.37%
Net income growth, 5-year CAGR 0.00% 1.63% 0.00%

Health

Metric AWI TREX Building Products & Equipment median
Debt to equity 0.59 0.25 0.43
Current ratio 1.52 1.06 1.82
Net debt to EBITDA 0.59 0.40 0.98

Dividend

Metric AWI TREX Building Products & Equipment median
Dividend yield 0.99% — 1.20%
Payout ratio 0.20 0.00 0.04

Size

Metric AWI TREX Building Products & Equipment median
Market cap 6.85b 4.40b 1.18b

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