Head-To-Head Comparison: Johnson Controls International (JCI) vs. Its Competitors

Johnson Controls International (NYSE:JCI) is one of 15 public companies in the “BLDG PRD – WOOD” industry, but how does it weigh in compared to its rivals? We will compare Johnson Controls International to related companies based on the strength of its dividends, analyst recommendations, profitability, valuation, risk, institutional ownership and earnings.

Risk and Volatility

Johnson Controls International has a beta of 1.31, suggesting that its share price is 31% more volatile than the S&P 500. Comparatively, Johnson Controls International’s rivals have a beta of 1.43, suggesting that their average share price is 43% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Johnson Controls International and its rivals, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Johnson Controls International	0	8	9	0	2.53
Johnson Controls International Competitors	188	1156	1094	47	2.40

Johnson Controls International presently has a consensus target price of $97.88, indicating a potential downside of 8.13%. As a group, “BLDG PRD – WOOD” companies have a potential upside of 25.27%. Given Johnson Controls International’s rivals higher possible upside, analysts clearly believe Johnson Controls International has less favorable growth aspects than its rivals.

Dividends

Johnson Controls International pays an annual dividend of $1.48 per share and has a dividend yield of 1.4%. Johnson Controls International pays out 39.5% of its earnings in the form of a dividend. As a group, “BLDG PRD – WOOD” companies pay a dividend yield of 1.7% and pay out 36.6% of their earnings in the form of a dividend. Johnson Controls International has raised its dividend for 4 consecutive years. Johnson Controls International lags its rivals as a dividend stock, given its lower dividend yield and higher payout ratio.

Profitability

This table compares Johnson Controls International and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Johnson Controls International	10.19%	15.13%	6.10%
Johnson Controls International Competitors	7.65%	10.27%	6.04%

Insider & Institutional Ownership

90.1% of Johnson Controls International shares are held by institutional investors. Comparatively, 82.9% of shares of all “BLDG PRD – WOOD” companies are held by institutional investors. 0.5% of Johnson Controls International shares are held by company insiders. Comparatively, 4.4% of shares of all “BLDG PRD – WOOD” companies are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock is poised for long-term growth.

Valuation and Earnings

This table compares Johnson Controls International and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Johnson Controls International	$22.95 billion	$1.71 billion	28.41
Johnson Controls International Competitors	$4.88 billion	$297.37 million	-13.25

Johnson Controls International has higher revenue and earnings than its rivals. Johnson Controls International is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Summary

Johnson Controls International beats its rivals on 9 of the 15 factors compared.

Johnson Controls International Company Profile

Johnson Controls International plc, together with its subsidiaries, engages in engineering, manufacturing, commissioning, and retrofitting building products and systems in the United States, Europe, the Asia Pacific, and internationally. It operates in four segments: Building Solutions North America, Building Solutions EMEA/LA, Building Solutions Asia Pacific, and Global Products. The company designs, sells, installs, and services heating, ventilating, air conditioning, controls, building management, refrigeration, integrated electronic security, integrated fire detection and suppression systems, and fire protection and security products for commercial, industrial, retail, small business, institutional, and governmental customers. It also provides energy efficiency solutions and technical services, including inspection, scheduled maintenance, and repair and replacement of mechanical and control systems, as well as data-driven smart building solutions to non-residential building and industrial applications. In addition, the company offers control software and software services for residential and commercial applications. Johnson Controls International plc was incorporated in 1885 and is headquartered in Cork, Ireland.