Critical Contrast: PIGEON CORP/ADR (PGENY) and Armstrong Flooring (AFI)

PIGEON CORP/ADR (OTCMKTS:PGENY) and Armstrong Flooring (NYSE:AFI) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, earnings, valuation, risk and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
PIGEON CORP/ADR N/A N/A N/A
Armstrong Flooring -15.86% 1.78% 1.08%

Institutional and Insider Ownership

98.2% of Armstrong Flooring shares are held by institutional investors. 1.6% of Armstrong Flooring shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

PIGEON CORP/ADR has a beta of 0.28, meaning that its stock price is 72% less volatile than the S&P 500. Comparatively, Armstrong Flooring has a beta of 2.28, meaning that its stock price is 128% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for PIGEON CORP/ADR and Armstrong Flooring, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
PIGEON CORP/ADR 0 0 0 0 N/A
Armstrong Flooring 0 4 1 0 2.20

Armstrong Flooring has a consensus target price of $18.25, indicating a potential upside of 34.69%. Given Armstrong Flooring’s higher probable upside, analysts plainly believe Armstrong Flooring is more favorable than PIGEON CORP/ADR.

Dividends

PIGEON CORP/ADR pays an annual dividend of $0.06 per share and has a dividend yield of 0.6%. Armstrong Flooring does not pay a dividend. PIGEON CORP/ADR pays out 23.1% of its earnings in the form of a dividend.

Valuation & Earnings

This table compares PIGEON CORP/ADR and Armstrong Flooring’s top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
PIGEON CORP/ADR $917.43 million 5.00 $124.55 million $0.26 36.85
Armstrong Flooring $728.20 million 0.48 -$163.00 million $0.22 61.59

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

Summary

Armstrong Flooring beats PIGEON CORP/ADR on 9 of the 15 factors compared between the two stocks.

PIGEON CORP/ADR Company Profile

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.

Armstrong Flooring Company Profile

Armstrong Flooring, Inc., together with its subsidiaries, designs, manufactures, sources, and sells flooring products in North America and the Pacific Rim. It operates through two segments, Resilient Flooring and Wood Flooring. The Resilient Flooring segment offers a range of floor coverings primarily for homes and commercial buildings under the Armstrong brand; and luxury vinyl tile products, vinyl tile flooring, vinyl sheet products, and laminate products, as well as installs and maintains materials and accessories. The Wood Flooring segment provides hardwood flooring products under the Armstrong and Bruce brand names for use in residential construction and renovation, as well as in commercial applications, including stores, restaurants, and offices. This segment offers pre-finished solid and engineered wood flooring products, as well as related accessories. The company sells its products to independent wholesale flooring distributors, large home centers, retailers, flooring contractors, and the manufactured homes industry, as well as through architects, designers, end users, and regional and national builders. Armstrong Flooring, Inc. was incorporated in 2015 and is headquartered in Lancaster, Pennsylvania.

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