Kingspan Group (OTCMKTS:KGSPF) versus Armstrong World Industries (NYSE:AWI) Head to Head Contrast

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

Institutional & Insider Ownership

46.6% of Kingspan Group shares are owned by institutional investors. Comparatively, 98.9% of Armstrong World Industries shares are owned by institutional investors. 1.2% of Armstrong World Industries shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kingspan Group	N/A	N/A	N/A
Armstrong World Industries	18.60%	37.35%	17.06%

Valuation & Earnings

This table compares Kingspan Group and Armstrong World Industries”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kingspan Group	N/A	N/A	N/A	$0.57	198.89
Armstrong World Industries	$1.62 billion	4.48	$308.70 million	$7.30	23.56

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

Kingspan Group pays an annual dividend of $0.09 per share and has a dividend yield of 0.1%. Armstrong World Industries pays an annual dividend of $1.36 per share and has a dividend yield of 0.8%. Kingspan Group pays out 15.0% of its earnings in the form of a dividend. Armstrong World Industries pays out 18.6% 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.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kingspan Group	0	0	0	0	0.00
Armstrong World Industries	0	4	5	1	2.70

Armstrong World Industries has a consensus target price of $213.25, indicating a potential upside of 24.01%. Given Armstrong World Industries’ stronger consensus rating and higher probable upside, analysts clearly believe Armstrong World Industries is more favorable than Kingspan Group.

Summary

Armstrong World Industries beats Kingspan Group on 13 of the 15 factors compared between the two stocks.

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.

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.