Armstrong World Industries (NYSE:AWI – Get Free Report) and Aspen Aerogels (NYSE:ASPN – Get Free Report) are both construction companies, but which is the superior investment? We will compare the two businesses based on the strength of their risk, earnings, profitability, dividends, analyst recommendations, valuation and institutional ownership.
Institutional & Insider Ownership
98.9% of Armstrong World Industries shares are owned by institutional investors. Comparatively, 97.6% of Aspen Aerogels shares are owned by institutional investors. 1.0% of Armstrong World Industries shares are owned by insiders. Comparatively, 3.0% of Aspen Aerogels shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Armstrong World Industries and Aspen Aerogels”s revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Armstrong World Industries | $1.62 billion | 4.12 | $308.70 million | $7.05 | 22.18 |
| Aspen Aerogels | $271.10 million | 1.68 | -$389.55 million | ($1.36) | -4.05 |
Armstrong World Industries has higher revenue and earnings than Aspen Aerogels. Aspen Aerogels 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 summary of recent ratings and price targets for Armstrong World Industries and Aspen Aerogels, as provided by MarketBeat.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Armstrong World Industries | 0 | 4 | 5 | 1 | 2.70 |
| Aspen Aerogels | 2 | 1 | 3 | 0 | 2.17 |
Armstrong World Industries presently has a consensus price target of $211.86, indicating a potential upside of 35.50%. Aspen Aerogels has a consensus price target of $5.19, indicating a potential downside of 5.75%. Given Armstrong World Industries’ stronger consensus rating and higher possible upside, research analysts clearly believe Armstrong World Industries is more favorable than Aspen Aerogels.
Volatility and Risk
Armstrong World Industries has a beta of 1.17, indicating that its stock price is 17% more volatile than the S&P 500. Comparatively, Aspen Aerogels has a beta of 3.03, indicating that its stock price is 203% more volatile than the S&P 500.
Profitability
This table compares Armstrong World Industries and Aspen Aerogels’ net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Armstrong World Industries | 18.59% | 36.71% | 16.86% |
| Aspen Aerogels | -48.64% | -22.16% | -12.85% |
Summary
Armstrong World Industries beats Aspen Aerogels on 13 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 Aspen Aerogels
Aspen Aerogels, Inc. designs, develops, manufactures, and sells aerogel insulation products primarily for use in the energy infrastructure and sustainable insulation materials markets in the United States, Asia, Canada, Europe, and Latin America. It operates in two segments, Energy Industrial and Thermal Barrier. The company offers PyroThin thermal barriers for use in lithium-ion batteries in electric vehicles and energy storage industries; Pyrogel XTE that reduces the risk of corrosion under insulation in energy infrastructure operating systems; and Pyrogel HPS for applications within the power generation market. It also offers Pyrogel XTF to provide protection against fire; Cryogel Z for sub-ambient and cryogenic applications in the energy infrastructure market; Spaceloft Subsea for use in pipe-in-pipe applications in offshore oil production; and Cryogel X201, which is used in designing cold systems, such as refrigerated appliances, cold storage equipment, and aerospace systems. The company was founded in 2001 and is headquartered in Northborough, Massachusetts.
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