Financial Analysis: Armstrong World Industries (AWI) & Tupperware Brands (TUP)

Armstrong World Industries (NYSE: AWI) and Tupperware Brands (NYSE:TUP) are both mid-cap construction companies, but which is the better investment? We will contrast the two businesses based on the strength of their risk, profitability, valuation, analyst recommendations, dividends, earnings and institutional ownership.

Earnings & Valuation

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This table compares Armstrong World Industries and Tupperware Brands’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Armstrong World Industries $893.60 million 3.31 $154.80 million $3.02 18.44
Tupperware Brands $2.26 billion 0.94 -$265.40 million $4.84 8.61



Armstrong World Industries has higher earnings, but lower revenue than Tupperware Brands. Tupperware Brands 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.

Analyst Recommendations

This is a breakdown of recent recommendations and price targets for Armstrong World Industries and Tupperware Brands, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Armstrong World Industries 1 6 3 0 2.20
Tupperware Brands 1 5 1 0 2.00

Armstrong World Industries presently has a consensus target price of $61.57, suggesting a potential upside of 10.54%. Tupperware Brands has a consensus target price of $58.50, suggesting a potential upside of 40.32%. Given Tupperware Brands’ higher possible upside, analysts plainly believe Tupperware Brands is more favorable than Armstrong World Industries.

Dividends

Tupperware Brands pays an annual dividend of $2.72 per share and has a dividend yield of 6.5%. Armstrong World Industries does not pay a dividend. Tupperware Brands pays out 56.2% of its earnings in the form of a dividend.

Profitability

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

Net Margins Return on Equity Return on Assets
Armstrong World Industries 12.77% 41.95% 7.84%
Tupperware Brands -11.77% 160.65% 15.44%

Risk and Volatility

Armstrong World Industries has a beta of 1.67, indicating that its share price is 67% more volatile than the S&P 500. Comparatively, Tupperware Brands has a beta of 1.51, indicating that its share price is 51% more volatile than the S&P 500.

Institutional and Insider Ownership

84.9% of Tupperware Brands shares are held by institutional investors. 1.7% of Armstrong World Industries shares are held by company insiders. Comparatively, 3.4% of Tupperware Brands shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

About Armstrong World Industries

Armstrong World Industries, Inc. designs, manufactures, and sells ceiling systems primarily for use in the construction and renovation of residential and commercial buildings worldwide. It principally offers mineral fiber, fiberglass wool, and metal ceiling systems. The company produces suspended mineral fiber and soft fiber ceiling systems; suspension system (grid) and ceiling component products; and acoustical ceiling, wall, and structural solutions. It sells its commercial ceiling materials and accessories to resale distributors and ceiling system contractors; residential ceiling products to wholesalers and retailers, such as large home centers; and architectural specialties products to resale distributors and ceiling systems contractors. The company was incorporated in 1891 and is headquartered in Lancaster, Pennsylvania.

About Tupperware Brands

Tupperware Brands Corporation operates as a direct-to-consumer marketer of various products across a range of brands and categories in Europe, Africa, the Middle East, the Asia Pacific, North America, and South America. The company engages in the manufacture and sale of design-centric preparation, storage, and serving solutions for the kitchen and home, as well as a line of cookware, knives, microwave products, microfiber textiles, water-filtration related items, and an array of products for on-the-go consumers under the Tupperware brand name. It also manufactures and distributes skin and hair care products, cosmetics, bath and body care, toiletries, fragrances, jewelry, and nutritional products under the Avroy Shlain, Fuller, NaturCare, Nutrimetics, and Nuvo brands. The company sells its products directly to distributors, directors, managers, and dealers. The company was formerly known as Tupperware Corporation and changed its name to Tupperware Brands Corporation in December 2005. Tupperware Brands Corporation was founded in 1996 and is headquartered in Orlando, Florida.

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