Critical Contrast: Myers Industries (MYE) versus Armstrong Flooring (AFI)

Myers Industries (NYSE: MYE) and Armstrong Flooring (NYSE:AFI) are both small-cap industrial products companies, but which is the better business? We will contrast the two companies based on the strength of their valuation, risk, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Dividends

Myers Industries pays an annual dividend of $0.54 per share and has a dividend yield of 2.3%. Armstrong Flooring does not pay a dividend. Myers Industries pays out 105.9% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future.



Earnings and Valuation

This table compares Myers Industries and Armstrong Flooring’s top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Myers Industries $547.04 million 1.30 -$9.88 million $0.51 45.78
Armstrong Flooring $1.13 billion 0.30 -$41.80 million $0.21 63.48

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

Analyst Ratings

This is a breakdown of recent ratings and price targets for Myers Industries and Armstrong Flooring, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Myers Industries 1 0 1 0 2.00
Armstrong Flooring 0 4 1 0 2.20

Myers Industries presently has a consensus price target of $19.50, suggesting a potential downside of 16.49%. Armstrong Flooring has a consensus price target of $25.50, suggesting a potential upside of 91.30%. Given Armstrong Flooring’s stronger consensus rating and higher possible upside, analysts clearly believe Armstrong Flooring is more favorable than Myers Industries.

Volatility & Risk

Myers Industries has a beta of 1.78, meaning that its stock price is 78% more volatile than the S&P 500. Comparatively, Armstrong Flooring has a beta of 2.27, meaning that its stock price is 127% more volatile than the S&P 500.

Institutional & Insider Ownership

87.3% of Myers Industries shares are owned by institutional investors. Comparatively, 97.3% of Armstrong Flooring shares are owned by institutional investors. 0.8% of Myers Industries shares are owned by insiders. Comparatively, 2.2% of Armstrong Flooring shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Profitability

This table compares Myers Industries and Armstrong Flooring’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Myers Industries -1.74% 15.86% 4.08%
Armstrong Flooring -3.69% 0.97% 0.62%

Summary

Armstrong Flooring beats Myers Industries on 8 of the 15 factors compared between the two stocks.

About Myers Industries

Myers Industries, Inc. manufactures and sells polymer products for industrial, agricultural, automotive, commercial, and consumer markets worldwide. The company's Material Handling segment provides plastic reusable material handling containers, pallets, small parts bins, bulk shipping containers, storage and organization products, and rotationally-molded plastic tanks for water, fuel, and waste handling applications; welded steel service carts, platform trucks, mobile work centers, racks, and cabinets; plastic trim and interior parts used in the production of seat components, consoles, and other applications in the recreational vehicle, marine, and industrial markets; and plastic fuel containers, portable marine fuel tanks and water containers, ammunition containers, and storage totes under the Buckhorn, Akro-Mils, Jamco Products, Ameri-Kart, and Scepter brands. This segment serves industrial manufacturing, food processing, retail/wholesale products distribution, agriculture, automotive, recreational vehicles, marine vehicles, healthcare, appliance, bakery, electronics, textiles, consumer, and other industries directly and through distributors. Its Distribution segment offers tire valves and accessories, tire changing and balancing equipment, lifts and alignment equipment, service equipment, hand tools, tire repair and retread supplies, highway markings, industrial rubber, tire pressure monitoring systems, general shop supplies; and brake, transmission, and service equipment and supplies. It offers products under the Myers Tire Supply, Myers Tire Supply International, and Patch Rubber Company, Elrick, Fleetline, MTS, Phoenix, and Seymoure brands. This segment serves retail tire, truck tire, and auto dealers; commercial auto and truck fleets; general service and repair centers; tire retreaders and repair; governmental agencies; telecommunications; industrial; road construction; and mining markets. The company was founded in 1933 and is headquartered in Akron, Ohio.

About Armstrong Flooring

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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