Armstrong World Industries (NYSE:AWI – Get Free Report) and MasterBrand (NYSE:MBC – Get Free Report) are both industrials companies, but which is the better business? We will compare the two companies based on the strength of their valuation, dividends, profitability, institutional ownership, risk, analyst recommendations and earnings.
Profitability
This table compares Armstrong World Industries and MasterBrand’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Armstrong World Industries | 18.60% | 37.35% | 17.06% |
| MasterBrand | -3.49% | 3.65% | 1.60% |
Valuation & Earnings
This table compares Armstrong World Industries and MasterBrand”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Armstrong World Industries | $1.62 billion | 4.63 | $308.70 million | $7.30 | 24.34 |
| MasterBrand | $2.73 billion | 0.66 | $26.70 million | ($0.69) | -12.84 |
Armstrong World Industries has higher earnings, but lower revenue than MasterBrand. MasterBrand 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.
Volatility and Risk
Armstrong World Industries has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500. Comparatively, MasterBrand has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500.
Insider & Institutional Ownership
98.9% of Armstrong World Industries shares are owned by institutional investors. Comparatively, 87.3% of MasterBrand shares are owned by institutional investors. 1.2% of Armstrong World Industries shares are owned by company insiders. Comparatively, 2.8% of MasterBrand shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of recent ratings for Armstrong World Industries and MasterBrand, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Armstrong World Industries | 0 | 3 | 5 | 1 | 2.78 |
| MasterBrand | 1 | 0 | 0 | 0 | 1.00 |
Armstrong World Industries presently has a consensus target price of $213.00, suggesting a potential upside of 19.88%. Given Armstrong World Industries’ stronger consensus rating and higher probable upside, equities analysts clearly believe Armstrong World Industries is more favorable than MasterBrand.
Summary
Armstrong World Industries beats MasterBrand on 12 of the 15 factors compared between the two stocks.
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.
About MasterBrand
MasterBrand, Inc. engages in the manufacture and sale of residential cabinets in the United States and Canada. The company offers a range of residential cabinetry products for the kitchen, bathroom, and other parts of the home. It sells its products to remodeling and new construction markets through dealers, retailers, and builders. The company was formerly known as United Cabinet Incorporated. MasterBrand, Inc. was founded in 1954 and is headquartered in Beachwood, Ohio.
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