Armstrong World Industries (AWI) vs. Berry Global Group (BERY) Financial Comparison

Armstrong World Industries (NYSE: AWI) and Berry Global Group (NYSE:BERY) are both mid-cap construction companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, analyst recommendations, profitability, risk, earnings, dividends and valuation.

Volatility and Risk

Armstrong World Industries has a beta of 1.71, indicating that its share price is 71% more volatile than the S&P 500. Comparatively, Berry Global Group has a beta of 1, indicating that its share price has a similar volatility profile to the S&P 500.

Valuation and Earnings

This table compares Armstrong World Industries and Berry Global Group’s gross revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Armstrong World Industries $893.60 million 3.67 $154.80 million $3.02 20.93
Berry Global Group $7.10 billion 0.85 $340.00 million $3.07 14.97

Berry Global Group has higher revenue and earnings than Armstrong World Industries. Berry Global Group 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 Berry Global Group’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Armstrong World Industries 13.54% 41.44% 8.42%
Berry Global Group 6.24% 41.40% 5.20%

Insider and Institutional Ownership

93.8% of Berry Global Group shares are owned by institutional investors. 1.9% of Armstrong World Industries shares are owned by insiders. Comparatively, 3.0% of Berry Global Group shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of recent ratings and target prices for Armstrong World Industries and Berry Global Group, as reported by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Armstrong World Industries 1 6 3 0 2.20
Berry Global Group 0 1 12 0 2.92

Armstrong World Industries presently has a consensus target price of $61.57, indicating a potential downside of 2.58%. Berry Global Group has a consensus target price of $67.09, indicating a potential upside of 45.94%. Given Berry Global Group’s stronger consensus rating and higher possible upside, analysts clearly believe Berry Global Group is more favorable than Armstrong World Industries.

Summary

Berry Global Group beats Armstrong World Industries on 8 of the 14 factors compared between the two stocks.

Armstrong World Industries Company Profile

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.

Berry Global Group Company Profile

Berry Global Group, Inc. manufactures and distributes engineered materials, nonwoven specialty materials, and consumer packaging products. The company operates through three segments: Engineered Materials; Health, Hygiene & Specialties; and Consumer Packaging. It offers engineered materials, including stretch and shrink films, and converter films; trash-can liners and food bags; cloth and foil, splicing and laminating, flame-retardant, vinyl-coated and carton sealing, electrical, double-faced cloth, masking, mounting, OEM, and medical and specialty tapes; and food and consumer films, retail bags, and polyvinyl chloride films. The company also provides components for baby diapers and other absorbent hygiene products, feminine hygiene products, medical garment materials, substrates for dryer sheets, household cleaning wipes, filters, protective house wraps, and specialty agriculture and industrial products; components for adult incontinence, surgical drapes, face masks, corrosion protection, cable wrap, geosynthetics, and specialty filtration products; and a range of products for baby care, infection prevention, and food and household packaging. In addition, it offers containers; foodservice products, such as thermoformed polypropylene and injection-molded plastic drink cups and lids; closures and over caps comprising continuous-thread and child-resistant closures, as well as aerosol over caps; bottle and prescription containers; and extruded and laminate tubes. The company primarily serves healthcare, personal care, and food and beverage markets through direct sales force and distributors in North America, South America, Europe, and Asia. The company was formerly known as Berry Plastics Group, Inc. and changed its name to Berry Global Group, Inc. in April 2017. Berry Global Group, Inc. was founded in 1967 and is headquartered in Evansville, Indiana.

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