Armstrong World Industries (NYSE:AWI – Get Free Report) and Inno (NASDAQ:INHD – Get Free Report) are both construction companies, but which is the superior investment? We will contrast the two businesses based on the strength of their institutional ownership, dividends, analyst recommendations, profitability, risk, earnings and valuation.
Risk & Volatility
Armstrong World Industries has a beta of 1.33, suggesting that its share price is 33% more volatile than the S&P 500. Comparatively, Inno has a beta of -1.2, suggesting that its share price is 220% less volatile than the S&P 500.
Profitability
This table compares Armstrong World Industries and Inno’s 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% |
| Inno | -248.77% | -47.74% | -44.15% |
Analyst Recommendations
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Armstrong World Industries | 0 | 4 | 5 | 1 | 2.70 |
| Inno | 1 | 0 | 0 | 0 | 1.00 |
Armstrong World Industries presently has a consensus target price of $207.50, suggesting a potential upside of 12.89%. Given Armstrong World Industries’ stronger consensus rating and higher possible upside, analysts clearly believe Armstrong World Industries is more favorable than Inno.
Earnings & Valuation
This table compares Armstrong World Industries and Inno”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Armstrong World Industries | $1.45 billion | 5.48 | $264.90 million | $6.99 | 26.30 |
| Inno | $2.85 million | 1.75 | -$7.08 million | ($19.90) | -0.06 |
Armstrong World Industries has higher revenue and earnings than Inno. Inno 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.
Insider & Institutional Ownership
98.9% of Armstrong World Industries shares are owned by institutional investors. Comparatively, 0.2% of Inno shares are owned by institutional investors. 1.0% of Armstrong World Industries shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Armstrong World Industries beats Inno on 15 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 Inno
Inno Holdings Inc. manufactures and sells cold-formed-steel members, castor cubes, mobile factories, and prefabricated homes in the United States. The company provides cold-formed steel framing and a mobile factory for off-site equipment rental, sales, service, and support. It serves in residential, commercial, industrial, and infrastructure projects. Inno Holdings Inc. was founded in 2019 and is headquartered in Brookshire, Texas.
Receive News & Ratings for Armstrong World Industries Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Armstrong World Industries and related companies with MarketBeat.com's FREE daily email newsletter.
