Head to Head Survey: Hillman Solutions (NASDAQ:HLMN) vs. Armstrong World Industries (NYSE:AWI)

Armstrong World Industries (NYSE:AWI) and Hillman Solutions (NASDAQ:HLMN) are both construction companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, dividends, risk, valuation, analyst recommendations, profitability and earnings.

Valuation & Earnings

This table compares Armstrong World Industries and Hillman Solutions”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Armstrong World Industries	$1.45 billion	5.56	$264.90 million	$6.99	26.64
Hillman Solutions	$1.47 billion	1.24	$17.25 million	$0.19	48.63

Armstrong World Industries has higher earnings, but lower revenue than Hillman Solutions. Armstrong World Industries is trading at a lower price-to-earnings ratio than Hillman Solutions, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Armstrong World Industries and Hillman Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Armstrong World Industries	19.08%	38.97%	17.14%
Hillman Solutions	2.44%	9.71%	4.95%

Analyst Recommendations

This is a summary of recent recommendations for Armstrong World Industries and Hillman Solutions, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Armstrong World Industries	0	4	5	1	2.70
Hillman Solutions	0	5	4	0	2.44

Armstrong World Industries currently has a consensus price target of $207.50, indicating a potential upside of 11.43%. Hillman Solutions has a consensus price target of $11.83, indicating a potential upside of 28.07%. Given Hillman Solutions’ higher possible upside, analysts clearly believe Hillman Solutions is more favorable than Armstrong World Industries.

Risk and Volatility

Armstrong World Industries has a beta of 1.3, indicating that its share price is 30% more volatile than the S&P 500. Comparatively, Hillman Solutions has a beta of 1.65, indicating that its share price is 65% more volatile than the S&P 500.

Institutional and Insider Ownership

98.9% of Armstrong World Industries shares are owned by institutional investors. Comparatively, 98.1% of Hillman Solutions shares are owned by institutional investors. 1.0% of Armstrong World Industries shares are owned by insiders. Comparatively, 4.9% of Hillman Solutions shares are owned by 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.

Summary

Armstrong World Industries beats Hillman Solutions on 10 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 Hillman Solutions

Founded in 1964 and headquartered in Cincinnati, Ohio, Hillman is a leading North American provider of complete hardware solutions, delivered with industry best customer service to over 40,000 locations. Hillman designs innovative product and merchandising solutions for complex categories that deliver an outstanding customer experience to home improvement centers, mass merchants, national and regional hardware stores, pet supply stores, and OEM & Industrial customers. Leveraging a world-class distribution and sales network, Hillman delivers a “small business” experience with “big business” efficiency.