Financial Review: Johnson Controls International (NYSE:JCI) versus Madison Air Solutions (NYSE:MAIR)

Johnson Controls International (NYSE:JCI) and Madison Air Solutions (NYSE:MAIR) are both large-cap industrials companies, but which is the better business? We will compare the two businesses based on the strength of their analyst recommendations, profitability, valuation, institutional ownership, earnings, risk and dividends.

Profitability

This table compares Johnson Controls International and Madison Air Solutions’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Johnson Controls International	11.12%	23.38%	8.12%
Madison Air Solutions	5.09%	17.43%	4.81%

Earnings and Valuation

This table compares Johnson Controls International and Madison Air Solutions”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Johnson Controls International	$25.67 billion	3.37	$2.85 billion	$4.68	30.48
Madison Air Solutions	$4.15 billion	2.88	$97.00 million	$83,088.69	0.00

Johnson Controls International has higher revenue and earnings than Madison Air Solutions. Madison Air Solutions is trading at a lower price-to-earnings ratio than Johnson Controls International, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Johnson Controls International and Madison Air Solutions, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Johnson Controls International	1	11	10	1	2.48
Madison Air Solutions	1	4	7	2	2.71

Johnson Controls International presently has a consensus price target of $166.76, indicating a potential upside of 16.92%. Madison Air Solutions has a consensus price target of $41.30, indicating a potential upside of 73.31%. Given Madison Air Solutions’ stronger consensus rating and higher probable upside, analysts clearly believe Madison Air Solutions is more favorable than Johnson Controls International.

Insider & Institutional Ownership

90.1% of Johnson Controls International shares are held by institutional investors. 0.3% of Johnson Controls International shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Johnson Controls International beats Madison Air Solutions on 10 of the 14 factors compared between the two stocks.

About Johnson Controls International

Johnson Controls International plc develops building technologies, products and services for commercial, industrial and institutional customers. Its offerings include heating, ventilation and air conditioning (HVAC) equipment, building automation and controls, fire detection and suppression systems, and security solutions. The company also provides maintenance, modernization and other services to help customers manage building operations. Its products and services support facilities such as offices, hospitals, schools, data centers and manufacturing sites.

About Madison Air Solutions

Madison Air Solutions designs and manufactures heating, ventilation and air-conditioning (HVAC) equipment and indoor air quality systems. Its offerings include engineered air-handling solutions and related products used to manage air movement, temperature and filtration in buildings. The company serves commercial and industrial applications, including facilities that require specialized climate control and ventilation. Its products are used in settings such as data centers, healthcare facilities, educational institutions and other large buildings.