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 $7.0B against $4.7B — 1.5× the size. Armstrong World Industries, Inc. trades at the lower P/E: 23.0× against 27.2×. 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 23.04 27.22 23.15
P/S 4.22 3.87 2.02
P/B 8.08 4.63 2.81
Price to free cash flow 28.85 23.55 16.84
EV/EBITDA 13.61 15.69 12.85
EV/Sales 4.48 4.08 2.04
Earnings yield 4.34% 3.67% 2.76%
Free cash flow yield 3.47% 4.25% 4.23%

Profitability

Metric AWI TREX Building Products & Equipment median
Gross margin 40.30% 38.20% 29.19%
Operating margin 25.79% 20.17% 6.99%
Net margin 18.60% 14.68% 4.05%
Free cash flow margin 14.61% 16.45% 7.60%
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%) (34.13%)
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 0.81% — 1.43%
Payout ratio 0.19 — 0.29

Size

Metric AWI TREX Building Products & Equipment median
Market cap 7.04b 4.71b 1.17b

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