Analyzing Armstrong World Industries (AWI) & Smart Sand (SND)

Armstrong World Industries (NYSE: AWI) and Smart Sand (NASDAQ:SND) are both construction companies, but which is the better business? We will compare the two businesses based on the strength of their profitability, earnings, risk, valuation, institutional ownership, dividends and analyst recommendations.

Earnings and Valuation

This table compares Armstrong World Industries and Smart Sand’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Armstrong World Industries $1.23 billion 2.53 $104.70 million $2.74 21.59
Smart Sand $59.23 million 5.41 $10.37 million $0.65 12.22

Armstrong World Industries has higher revenue and earnings than Smart Sand. Smart Sand 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.

Profitability

This table compares Armstrong World Industries and Smart Sand’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Armstrong World Industries 11.44% 46.62% 7.85%
Smart Sand 18.67% 14.41% 11.85%

Analyst Ratings

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

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Armstrong World Industries 0 4 4 0 2.50
Smart Sand 0 4 5 0 2.56

Armstrong World Industries presently has a consensus target price of $55.43, indicating a potential downside of 6.29%. Smart Sand has a consensus target price of $13.28, indicating a potential upside of 67.23%. Given Smart Sand’s stronger consensus rating and higher possible upside, analysts plainly believe Smart Sand is more favorable than Armstrong World Industries.

Insider and Institutional Ownership

49.7% of Smart Sand shares are held by institutional investors. 0.6% of Armstrong World Industries shares are held by company insiders. Comparatively, 46.4% of Smart Sand shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Armstrong World Industries has a beta of 1.73, indicating that its share price is 73% more volatile than the S&P 500. Comparatively, Smart Sand has a beta of 3.33, indicating that its share price is 233% more volatile than the S&P 500.

Summary

Smart Sand beats Armstrong World Industries on 9 of the 14 factors compared between the two stocks.

About Armstrong World Industries

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.

About Smart Sand

Smart Sand, Inc. is a producer of Northern White raw frac sand, which is a proppant used to enhance hydrocarbon recovery rates in the hydraulic fracturing of oil and natural gas wells. The Company sells its products primarily to oil and natural gas exploration and production companies and oilfield service companies under a combination of long-term take-or-pay contracts and spot sales in the open market. It owns and operates a raw frac sand mine and related processing facility near Oakdale, Wisconsin. In addition to the Oakdale facility, it owns a second property in Jackson County, Wisconsin, known as Hixton site. Its sand reserves include a balanced concentration of coarse (20/40, 30/50 and 40/70 gradation) sands and fine (60/140 gradation) sand. Its reserves contain deposits of approximately 20% of 20/40 and coarser substrate, over 40% of 40/70 mesh substrate and approximately 40% of 100-mesh substrate. Its 30/50 gradation is a derivative of the 20/40 and 40/70 blends.

Receive News & Ratings for Armstrong World Industries Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Armstrong World Industries and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply