Armstrong World Industries, Inc. (AWI) vs Advanced Drainage Systems, Inc. (WMS)

Armstrong World Industries, Inc. and Advanced Drainage Systems, Inc. are both Building Products & Equipment companies. Advanced Drainage Systems, Inc. is the larger, with a market value of $9.7B against $7.0B — 1.4× the size. Advanced Drainage Systems, Inc. trades at the lower P/E: 21.9× against 23.0×. Advanced Drainage Systems, Inc. grew revenue faster over the last twelve months: 10.4% against 8.57%. Armstrong World Industries, Inc. has the higher net margin (18.6% vs 14.0%) and the higher return on invested capital (20.6% vs 12.3%). Both pay a dividend; Armstrong World Industries, Inc. yields more (0.81% vs 0.59%). Across the 23 metrics below, Advanced Drainage Systems, Inc. leads on 12 and Armstrong World Industries, Inc. on 11.

Valuation

Metric AWI WMS Building Products & Equipment median
P/E 23.04 21.93 23.15
P/S 4.22 3.04 2.02
P/B 8.08 5.38 2.81
Price to free cash flow 28.85 17.76 16.84
EV/EBITDA 13.61 12.63 12.85
EV/Sales 4.48 3.52 2.04
Earnings yield 4.34% 4.56% 2.76%
Free cash flow yield 3.47% 5.63% 4.23%

Profitability

Metric AWI WMS Building Products & Equipment median
Gross margin 40.30% 38.65% 29.19%
Operating margin 25.79% 20.74% 6.99%
Net margin 18.60% 14.00% 4.05%
Free cash flow margin 14.61% 17.10% 7.60%
Return on equity 36.62% 25.71% 9.28%
Return on assets 16.30% 10.71% 2.88%
Return on invested capital 20.58% 12.34% 5.16%

Growth

Metric AWI WMS Building Products & Equipment median
Revenue growth (TTM) 8.57% 10.37% 3.11%
EPS growth (last fiscal year) 17.61% (5.56%) (34.13%)
Revenue growth, 5-year CAGR 11.59% 9.00% 5.37%
Net income growth, 5-year CAGR 0.00% 18.13% 0.00%

Health

Metric AWI WMS Building Products & Equipment median
Debt to equity 0.59 0.95 0.43
Current ratio 1.52 2.12 1.82
Net debt to EBITDA 0.59 1.80 0.98

Dividend

Metric AWI WMS Building Products & Equipment median
Dividend yield 0.81% 0.59% 1.43%
Payout ratio 0.19 0.13 0.29

Size

Metric AWI WMS Building Products & Equipment median
Market cap 7.04b 9.69b 1.17b

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