Armstrong World Industries (NYSE: AWI) and FORTERRA INC (NASDAQ:FRTA) are both construction companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, dividends, risk, institutional ownership, profitability, analyst recommendations and valuation.
Analyst Ratings
This is a summary of recent recommendations and price targets for Armstrong World Industries and FORTERRA INC, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Armstrong World Industries | 1 | 3 | 4 | 0 | 2.38 |
| FORTERRA INC | 0 | 6 | 3 | 0 | 2.33 |
Armstrong World Industries presently has a consensus target price of $44.83, suggesting a potential downside of 1.03%. FORTERRA INC has a consensus target price of $14.88, suggesting a potential upside of 224.78%. Given FORTERRA INC’s higher possible upside, analysts plainly believe FORTERRA INC is more favorable than Armstrong World Industries.
Valuation and Earnings
This table compares Armstrong World Industries and FORTERRA INC’s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | EBITDA | Earnings Per Share | Price/Earnings Ratio | |
| Armstrong World Industries | $1.28 billion | 1.87 | $255.10 million | $3.08 | 14.71 |
| FORTERRA INC | $1.57 billion | 0.19 | $160.18 million | N/A | N/A |
Armstrong World Industries has higher revenue, but lower earnings than FORTERRA INC.
Profitability
This table compares Armstrong World Industries and FORTERRA INC’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Armstrong World Industries | 13.24% | 49.73% | 7.74% |
| FORTERRA INC | -4.72% | -45.03% | -3.19% |
Summary
Armstrong World Industries beats FORTERRA INC on 7 of the 9 factors compared between the two stocks.
Armstrong World Industries Company Profile
Armstrong World Industries, Inc. (AWI) is a global producer of ceiling systems. The Company owns and operates the Building Products (Ceilings) segment. The Company designs, manufactures and sells ceiling systems (primarily mineral fiber, fiberglass wool and metal) around the world. Its products are used in commercial and institutional buildings. Its geographical segments include Americas (including Canada); Europe, Middle East and Africa (including Russia) (EMEA), and Pacific Rim. As of December 31, 2016, it had 15 manufacturing plants in eight countries, including six plants located throughout the United States. Its Americas segment sells products for use in single and multi-family housing. It sells commercial products to building materials distributors re-selling its products to contractors, subcontractors’ alliances, architect and design firms, and facility owners. Residential ceiling products are sold in the Americas primarily to wholesalers and retailers.
FORTERRA INC Company Profile
Forterra, Inc. is a manufacturer of pipe and precast products. The Company offers products for a range of water-related infrastructure applications, including water transmission, distribution and drainage. The Company operates approximately 95 facilities. Its products are available in the United States and Eastern Canada.
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