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 $6.9B — 1.4× the size. Armstrong World Industries, Inc. trades at the lower P/E: 22.3× against 22.8×. 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 (0.99% vs 0.35%). Across the 23 metrics below, Armstrong World Industries, Inc. leads on 13 and Advanced Drainage Systems, Inc. on 10.

Valuation

Metric AWI WMS Building Products & Equipment median
P/E 22.30 22.84 24.54
P/S 4.08 3.16 2.00
P/B 7.82 5.60 3.02
Price to free cash flow 27.93 18.49 18.49
EV/EBITDA 13.20 13.08 12.63
EV/Sales 4.34 3.65 2.14
Earnings yield 4.48% 4.38% 2.74%
Free cash flow yield 3.58% 5.41% 3.58%

Profitability

Metric AWI WMS Building Products & Equipment median
Gross margin 40.30% 38.65% 29.19%
Operating margin 25.79% 20.74% 6.84%
Net margin 18.60% 14.00% 4.05%
Free cash flow margin 14.61% 17.10% 8.72%
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%) —
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 0.99% 0.35% 1.20%
Payout ratio 0.20 0.08 0.04

Size

Metric AWI WMS Building Products & Equipment median
Market cap 6.85b 9.72b 1.18b

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