AWI vs JCI vs CARR vs HON

For growth investors, Armstrong World Industries, Inc.

(AWI) is the stronger pick with 12. 1% revenue growth year-over-year, versus -3. 3% for Carrier Global Corporation (CARR). Armstrong World Industries, Inc. (AWI) offers the better valuation at 23. 3x trailing P/E (19. 9x forward), making it the more compelling value choice. Analysts rate Armstrong World Industries, Inc. (AWI) a "Buy" — based on 26 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Armstrong World Industries, Inc.

(AWI) is the cheapest at 23. 3x versus Johnson Controls International plc at 52. 9x. On forward P/E, Armstrong World Industries, Inc. is actually cheaper at 19. 9x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Johnson Controls International plc wins at 1. 15x versus Honeywell International Inc. 's 11. 18x — a reasonable growth-adjusted valuation.

Over the past 5 years, Johnson Controls International plc (JCI) delivered a total return of +122.

9%, compared to +3. 3% for Honeywell International Inc. (HON). Over 10 years, the gap is even starker: CARR returned +493. 6% versus HON's +135. 1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Honeywell International Inc.

(HON) is the lower-risk stock at 0. 74β versus Carrier Global Corporation's 1. 19β — meaning CARR is approximately 61% more volatile than HON relative to the S&P 500. On balance sheet safety, Armstrong World Industries, Inc. (AWI) carries a lower debt/equity ratio of 59% versus 2% for Honeywell International Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Armstrong World Industries, Inc.

(AWI) is pulling ahead at 12. 1% versus -3. 3% for Carrier Global Corporation (CARR). On earnings-per-share growth, the picture is similar: Armstrong World Industries, Inc. grew EPS 17. 6% year-over-year, compared to -72. 4% for Carrier Global Corporation. Over a 3-year CAGR, AWI leads at 9. 5% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Armstrong World Industries, Inc.

(AWI) is the more profitable company, earning 19. 0% net margin versus 6. 9% for Carrier Global Corporation — meaning it keeps 19. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: AWI leads at 26. 6% versus 9. 9% for CARR. At the gross margin level — before operating expenses — AWI leads at 40. 6%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Johnson Controls International plc (JCI) is the more undervalued stock at a PEG of 1. 15x versus Honeywell International Inc. 's 11. 18x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Armstrong World Industries, Inc. (AWI) trades at 19. 9x forward P/E versus 29. 4x for Johnson Controls International plc — 9. 5x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for AWI: 19. 6% to $197. 50.

All stocks in this comparison pay dividends.

Honeywell International Inc. (HON) offers the highest yield at 2. 1%, versus 0. 8% for Armstrong World Industries, Inc. (AWI).

For long-horizon retirement investors, Armstrong World Industries, Inc.

(AWI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 82), 0. 8% yield, +330. 4% 10Y return). Both have compounded well over 10 years (AWI: +330. 4%, CARR: +493. 6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.