Kingspan Group (OTCMKTS:KGSPF) vs. Armstrong World Industries (NYSE:AWI) Head to Head Comparison

Armstrong World Industries (NYSE:AWI) and Kingspan Group (OTCMKTS:KGSPF) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their earnings, valuation, dividends, risk, profitability, analyst recommendations and institutional ownership.

Insider & Institutional Ownership

98.9% of Armstrong World Industries shares are owned by institutional investors. Comparatively, 46.6% of Kingspan Group shares are owned by institutional investors. 1.2% of Armstrong World Industries shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Ratings

This is a summary of recent recommendations and price targets for Armstrong World Industries and Kingspan Group, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Armstrong World Industries	0	4	4	2	2.80
Kingspan Group	0	0	0	0	0.00

Armstrong World Industries currently has a consensus price target of $213.25, indicating a potential upside of 21.17%. Given Armstrong World Industries’ stronger consensus rating and higher possible upside, equities analysts clearly believe Armstrong World Industries is more favorable than Kingspan Group.

Profitability

This table compares Armstrong World Industries and Kingspan Group’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%
Kingspan Group	N/A	N/A	N/A

Valuation and Earnings

This table compares Armstrong World Industries and Kingspan Group”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	4.59	$308.70 million	$7.30	24.11
Kingspan Group	N/A	N/A	N/A	$0.57	206.20

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

Dividends

Armstrong World Industries pays an annual dividend of $1.36 per share and has a dividend yield of 0.8%. Kingspan Group pays an annual dividend of $0.09 per share and has a dividend yield of 0.1%. Armstrong World Industries pays out 18.6% of its earnings in the form of a dividend. Kingspan Group pays out 15.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Armstrong World Industries has increased its dividend for 1 consecutive years. Armstrong World Industries is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Summary

Armstrong World Industries beats Kingspan Group on 13 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 Kingspan Group

Kingspan Group plc, together with its subsidiaries, provides insulation and building envelope solutions in Western and Southern Europe, Central and Northern Europe, the Americas, and internationally. It operates through five segments: Insulated Panels, Insulation, Roofing + Waterproofing, Light, Air + Water, and Data + Flooring. The Insulated Panels segment manufactures insulated panels, structural framing, and metal facades. The Insulation segment produces rigid insulation boards, technical insulation, and engineered timber systems. The Roofing + Waterproofing segment produces roofing and waterproofing solutions for renovation and new construction of buildings. The Light, Air + Water segment offers daylighting, smoke management, ventilation systems, and service activities, as well as provides energy and water solutions, and related services. The Data + Flooring segment manufactures data center storage solutions, as well as raised access floors. Kingspan Group plc was founded in 1965 and is based in Kingscourt, Ireland.