Aspen Aerogels (NYSE:ASPN – Get Free Report) and Armstrong World Industries (NYSE:AWI – Get Free Report) are both construction companies, but which is the superior business? We will compare the two businesses based on the strength of their analyst recommendations, institutional ownership, dividends, earnings, profitability, valuation and risk.
Volatility & Risk
Aspen Aerogels has a beta of 3.02, meaning that its share price is 202% more volatile than the S&P 500. Comparatively, Armstrong World Industries has a beta of 1.17, meaning that its share price is 17% more volatile than the S&P 500.
Insider & Institutional Ownership
97.6% of Aspen Aerogels shares are owned by institutional investors. Comparatively, 98.9% of Armstrong World Industries shares are owned by institutional investors. 3.0% of Aspen Aerogels shares are owned by insiders. Comparatively, 1.2% of Armstrong World Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.
Analyst Ratings
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Aspen Aerogels | 2 | 1 | 3 | 0 | 2.17 |
| Armstrong World Industries | 0 | 4 | 5 | 1 | 2.70 |
Aspen Aerogels currently has a consensus target price of $5.19, suggesting a potential downside of 14.03%. Armstrong World Industries has a consensus target price of $211.86, suggesting a potential upside of 35.55%. Given Armstrong World Industries’ stronger consensus rating and higher possible upside, analysts plainly believe Armstrong World Industries is more favorable than Aspen Aerogels.
Profitability
This table compares Aspen Aerogels and Armstrong World Industries’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Aspen Aerogels | -48.64% | -22.16% | -12.85% |
| Armstrong World Industries | 18.59% | 36.71% | 16.86% |
Valuation & Earnings
This table compares Aspen Aerogels and Armstrong World Industries”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Aspen Aerogels | $271.10 million | 1.84 | -$389.55 million | ($1.36) | -4.44 |
| Armstrong World Industries | $1.62 billion | 4.12 | $308.70 million | $7.05 | 22.17 |
Armstrong World Industries has higher revenue and earnings than Aspen Aerogels. Aspen Aerogels is trading at a lower price-to-earnings ratio than Armstrong World Industries, indicating that it is currently the more affordable of the two stocks.
Summary
Armstrong World Industries beats Aspen Aerogels on 13 of the 15 factors compared between the two stocks.
About Aspen Aerogels
Aspen Aerogels, Inc. designs, develops, manufactures, and sells aerogel insulation products primarily for use in the energy infrastructure and sustainable insulation materials markets in the United States, Asia, Canada, Europe, and Latin America. It operates in two segments, Energy Industrial and Thermal Barrier. The company offers PyroThin thermal barriers for use in lithium-ion batteries in electric vehicles and energy storage industries; Pyrogel XTE that reduces the risk of corrosion under insulation in energy infrastructure operating systems; and Pyrogel HPS for applications within the power generation market. It also offers Pyrogel XTF to provide protection against fire; Cryogel Z for sub-ambient and cryogenic applications in the energy infrastructure market; Spaceloft Subsea for use in pipe-in-pipe applications in offshore oil production; and Cryogel X201, which is used in designing cold systems, such as refrigerated appliances, cold storage equipment, and aerospace systems. The company was founded in 2001 and is headquartered in Northborough, Massachusetts.
About Armstrong World Industries
Armstrong World Industries, Inc., together with its subsidiaries, engages in the design, manufacture, and sale of ceiling and wall solutions in the Americas. It operates through Mineral Fiber and Architectural Specialties segments. The company offers mineral fiber, fiberglass wool, metal, wood, felt, wood fiber, and glass-reinforced-gypsum; ceiling component products, such as ceiling perimeters and trims, as well as grid products that support drywall ceiling systems; ceilings, walls, and facades for use in commercial settings; and manufactures ceiling suspension system (grid) products. It serves commercial and residential construction markets, as well as renovation of existing buildings sectors. The company sells its products to resale distributors, ceiling system contractors, wholesalers, and retailers comprising large home centers. Armstrong World Industries, Inc. was founded in 1860 and is headquartered in Lancaster, Pennsylvania.
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