Analyzing Armstrong World Industries (AWI) & PIGEON CORP/ADR (PGENY)

Armstrong World Industries (NYSE:AWI) and PIGEON CORP/ADR (OTCMKTS:PGENY) are both mid-cap construction companies, but which is the superior investment? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, dividends, profitability, earnings, risk and valuation.

Earnings & Valuation

This table compares Armstrong World Industries and PIGEON CORP/ADR’s 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 3.61 $154.80 million $3.02 21.53
PIGEON CORP/ADR $917.43 million 5.45 $126.52 million $0.26 39.54

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

Volatility & Risk

Armstrong World Industries has a beta of 1.78, meaning that its share price is 78% more volatile than the S&P 500. Comparatively, PIGEON CORP/ADR has a beta of 1.16, meaning that its share price is 16% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Armstrong World Industries and PIGEON CORP/ADR, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Armstrong World Industries 1 4 2 0 2.14
PIGEON CORP/ADR 0 0 0 0 N/A

Armstrong World Industries presently has a consensus price target of $73.33, suggesting a potential upside of 12.80%. Given Armstrong World Industries’ higher possible upside, equities research analysts plainly believe Armstrong World Industries is more favorable than PIGEON CORP/ADR.

Profitability

This table compares Armstrong World Industries and PIGEON CORP/ADR’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Armstrong World Industries 19.46% 45.95% 9.51%
PIGEON CORP/ADR N/A N/A N/A

Dividends

Armstrong World Industries pays an annual dividend of $0.70 per share and has a dividend yield of 1.1%. PIGEON CORP/ADR pays an annual dividend of $0.12 per share and has a dividend yield of 1.2%. Armstrong World Industries pays out 23.2% of its earnings in the form of a dividend. PIGEON CORP/ADR pays out 46.2% 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.

Insider & Institutional Ownership

97.1% of Armstrong World Industries shares are held by institutional investors. 1.9% of Armstrong World Industries shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.

Summary

Armstrong World Industries beats PIGEON CORP/ADR on 11 of the 15 factors compared between the two stocks.

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 PIGEON CORP/ADR

Pigeon Corporation manufactures, sells, imports, and exports baby and child-care products, maternity items, women's care products, home healthcare products, elder care products, etc. in Japan and internationally. The company operates through Domestic Baby & Mother Care Business, Child Care Service Business, Health & Elder Care Business, Overseas Business, China Business, and Other segments. It offers breastfeeding, weaning, skincare, women's care, and large-sized products for babies, as well as other products for babies and mothers. The company also provides child-rearing support, babysitter dispatch, event child-care, and preschool education services; and operates child-minding facilities and daycare centers. In addition, it offers elder care and anti-aging products, and elder care support services; and baby and mother related products, such as nursing bottles and nipples, toiletries, and skincare products. The company was formerly known as Pigeon Honyuki Honpo Corporation and changed its name to Pigeon Corporation in 1966. Pigeon Corporation was founded in 1949 and is headquartered in Tokyo, Japan.

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