Analyzing Johnson Controls International (JCI) and Its Rivals

Johnson Controls International (NYSE:JCI) is one of 93 publicly-traded companies in the “Building Products” industry, but how does it compare to its competitors? We will compare Johnson Controls International to similar companies based on the strength of its dividends, analyst recommendations, valuation, institutional ownership, earnings, risk and profitability.

Profitability

This table compares Johnson Controls International and its competitors’ 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%
Johnson Controls International Competitors	3.72%	-38.07%	5.08%

Earnings and Valuation

This table compares Johnson Controls International and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Johnson Controls International	$25.67 billion	$2.85 billion	30.48
Johnson Controls International Competitors	$4.00 billion	$4.65 billion	39.20

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

Institutional and Insider Ownership

90.0% of Johnson Controls International shares are owned by institutional investors. Comparatively, 63.6% of shares of all “Building Products” companies are owned by institutional investors. 0.3% of Johnson Controls International shares are owned by company insiders. Comparatively, 10.2% of shares of all “Building Products” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Risk & Volatility

Johnson Controls International has a beta of 1.27, meaning that its share price is 27% more volatile than the S&P 500. Comparatively, Johnson Controls International’s competitors have a beta of 1.07, meaning that their average share price is 7% more volatile than the S&P 500.

Analyst Ratings

This is a summary of current ratings for Johnson Controls International and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Johnson Controls International	1	11	10	1	2.48
Johnson Controls International Competitors	745	3944	5077	241	2.48

Johnson Controls International presently has a consensus price target of $166.76, suggesting a potential upside of 16.92%. As a group, “Building Products” companies have a potential upside of 26.82%. Given Johnson Controls International’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Johnson Controls International has less favorable growth aspects than its competitors.

Dividends

Johnson Controls International pays an annual dividend of $1.60 per share and has a dividend yield of 1.1%. Johnson Controls International pays out 34.2% of its earnings in the form of a dividend. As a group, “Building Products” companies pay a dividend yield of 7.0% and pay out 37.6% of their earnings in the form of a dividend. Johnson Controls International has increased its dividend for 4 consecutive years.

Summary

Johnson Controls International beats its competitors on 8 of the 15 factors compared.

Johnson Controls International Company Profile

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.