Head-To-Head Comparison: Armstrong World Industries (NYSE:AWI) & Everus Construction Group (NYSE:ECG)

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

Analyst Recommendations

This is a summary of current recommendations for Armstrong World Industries and Everus Construction Group, 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
Everus Construction Group	0	5	2	0	2.29

Armstrong World Industries currently has a consensus price target of $207.50, indicating a potential upside of 3.24%. Everus Construction Group has a consensus price target of $102.75, indicating a potential upside of 0.12%. Given Armstrong World Industries’ stronger consensus rating and higher possible upside, equities analysts plainly believe Armstrong World Industries is more favorable than Everus Construction Group.

Risk and Volatility

Armstrong World Industries has a beta of 1.33, indicating that its stock price is 33% more volatile than the S&P 500. Comparatively, Everus Construction Group has a beta of 3.84, indicating that its stock price is 284% more volatile than the S&P 500.

Profitability

This table compares Armstrong World Industries and Everus Construction Group’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%
Everus Construction Group	5.18%	36.74%	12.59%

Insider and Institutional Ownership

98.9% of Armstrong World Industries shares are held by institutional investors. 1.0% of Armstrong World Industries shares are held by company insiders. Comparatively, 0.2% of Everus Construction Group shares are held 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.

Valuation and Earnings

This table compares Armstrong World Industries and Everus Construction 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	$1.45 billion	6.00	$264.90 million	$6.99	28.75
Everus Construction Group	$2.85 billion	1.84	$143.42 million	$3.53	29.07

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

Summary

Armstrong World Industries beats Everus Construction Group 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 Everus Construction Group

Everus Construction Group is providing a full spectrum of construction services through its electrical and mechanical and transmission and distribution specialty contracting services principally in United States. Its specialty contracting services are provided to utility, transportation, commercial, industrial, institutional, renewable and other customers. Everus Construction Group is based in BISMARCK, N.D.