Head-To-Head Contrast: Johnson Controls International (JCI) and Its Peers

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 peers? We will compare Johnson Controls International to related businesses based on the strength of its profitability, analyst recommendations, institutional ownership, earnings, dividends, valuation and risk.

Institutional & Insider Ownership

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

Profitability

This table compares Johnson Controls International and its peers’ 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	7.39%	10.15%	5.97%

Risk & Volatility

Johnson Controls International has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500. Comparatively, Johnson Controls International’s peers have a beta of 1.49, meaning that their average stock price is 49% more volatile than the S&P 500.

Analyst Ratings

This is a summary of recent recommendations for Johnson Controls International and its peers, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Johnson Controls International	0	8	9	0	2.53
Johnson Controls International Competitors	186	1156	1091	47	2.40

Johnson Controls International presently has a consensus target price of $97.88, indicating a potential downside of 5.46%. As a group, “BLDG PRD – WOOD” companies have a potential upside of 30.41%. Given Johnson Controls International’s peers higher possible upside, analysts plainly believe Johnson Controls International has less favorable growth aspects than its peers.

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 37.6% 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 peers as a dividend stock, given its lower dividend yield and higher payout ratio.

Earnings & Valuation

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Johnson Controls International	$22.95 billion	$1.71 billion	27.61
Johnson Controls International Competitors	$4.92 billion	$298.49 million	-12.43

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

Summary

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

About Johnson Controls International

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.