Head-To-Head Comparison: Armstrong World Industries (NYSE:AWI) vs. Modine Manufacturing (NYSE:MOD)

Armstrong World Industries (NYSE:AWI) and Modine Manufacturing (NYSE:MOD) are both mid-cap industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, institutional ownership, earnings, analyst recommendations, risk, dividends and valuation.

Insider & Institutional Ownership

98.9% of Armstrong World Industries shares are owned by institutional investors. Comparatively, 95.2% of Modine Manufacturing shares are owned by institutional investors. 1.2% of Armstrong World Industries shares are owned by company insiders. Comparatively, 1.9% of Modine Manufacturing shares are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

This table compares Armstrong World Industries and Modine Manufacturing’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%
Modine Manufacturing	4.28%	25.59%	11.39%

Valuation & Earnings

This table compares Armstrong World Industries and Modine Manufacturing”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	4.38	$308.70 million	$7.30	23.00
Modine Manufacturing	$3.18 billion	2.48	$121.50 million	$2.66	55.86

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

Analyst Ratings

This is a summary of current ratings and target prices for Armstrong World Industries and Modine Manufacturing, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Armstrong World Industries	0	2	5	1	2.88
Modine Manufacturing	0	2	7	1	2.90

Armstrong World Industries presently has a consensus target price of $213.25, suggesting a potential upside of 27.03%. Modine Manufacturing has a consensus target price of $309.50, suggesting a potential upside of 108.28%. Given Modine Manufacturing’s stronger consensus rating and higher possible upside, analysts plainly believe Modine Manufacturing is more favorable than Armstrong World Industries.

Volatility & Risk

Armstrong World Industries has a beta of 1.16, meaning that its stock price is 16% more volatile than the S&P 500. Comparatively, Modine Manufacturing has a beta of 1.71, meaning that its stock price is 71% more volatile than the S&P 500.

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 Modine Manufacturing

Modine Manufacturing Company provides thermal management products and solutions in the United States, Italy, Hungary, China, the United Kingdom, and internationally. It operates through Climate Solutions and Performance Technologies segments. The company offers heat transfer coils, including heat recovery and round tube plate fin coils; gas-fired, hydronic, electric and oilfired unit heaters; roof-mounted direct- and indirect-fired makeup air units; duct furnaces; infrared units; perimeter heating products; single packaged unit ventilators; modular chillers; air handler and condensing units; ceiling cassettes; evaporator unit coolers, remote condensers, fluid coolers, gas coolers, and dry and brine coolers; and motor and generator cooling coils, transformer oil coolers, radiators, dryers, and industrial heat exchangers. It also provides data center products consisting of IT cooling solutions, including precision air conditioning units for data center applications; computer room air conditioning and handler units; hybrid fan coils; fan walls; chillers; condensers; condensing units; and liquid cooling solutions for high-density computing, as well as replacement parts, maintenance service and control solutions for existing equipment and new building management controls and systems. In addition, the company offers powertrain cooling products, such as radiators, condensers, engine cooling modules, charge air coolers, fan shrouds, and surge tanks; cooling module generator sets; aluminum and stainless steel engine oil coolers, exhaust gas recirculation coolers, liquid charge air coolers, transmission and retarder oil coolers, and chillers; battery thermal management systems, electronics cooling packages, battery chillers, battery cooling plates, coolers and casings for electronics cooling, and coolers for electric axles; and coatings products and application services. Modine Manufacturing Company was incorporated in 1916 and is headquartered in Racine, Wisconsin.