Johnson Controls International (NYSE:JCI) and Allegion (NYSE:ALLE) Head-To-Head Survey

Allegion (NYSE:ALLE) and Johnson Controls International (NYSE:JCI) are both large-cap industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, analyst recommendations, earnings, institutional ownership, profitability, risk and dividends.

Dividends

Allegion pays an annual dividend of $2.20 per share and has a dividend yield of 1.5%. Johnson Controls International pays an annual dividend of $1.60 per share and has a dividend yield of 1.1%. Allegion pays out 28.9% of its earnings in the form of a dividend. Johnson Controls International pays out 27.8% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Allegion has increased its dividend for 11 consecutive years and Johnson Controls International has increased its dividend for 4 consecutive years. Allegion is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Earnings & Valuation

This table compares Allegion and Johnson Controls International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Allegion	$4.07 billion	3.16	$643.80 million	$7.62	19.86
Johnson Controls International	$23.60 billion	3.67	$3.29 billion	$5.75	24.86

Johnson Controls International has higher revenue and earnings than Allegion. Allegion 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 price targets for Allegion and Johnson Controls International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Allegion	0	7	2	1	2.40
Johnson Controls International	1	10	12	0	2.48

Allegion presently has a consensus target price of $164.75, indicating a potential upside of 8.88%. Johnson Controls International has a consensus target price of $155.75, indicating a potential upside of 8.96%. Given Johnson Controls International’s stronger consensus rating and higher possible upside, analysts plainly believe Johnson Controls International is more favorable than Allegion.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Allegion	15.36%	35.41%	13.80%
Johnson Controls International	14.32%	22.11%	7.69%

Institutional & Insider Ownership

92.2% of Allegion shares are owned by institutional investors. Comparatively, 90.0% of Johnson Controls International shares are owned by institutional investors. 0.6% of Allegion shares are owned by company insiders. Comparatively, 0.3% of Johnson Controls International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Allegion has a beta of 0.83, meaning that its share price is 17% less volatile than the S&P 500. Comparatively, Johnson Controls International has a beta of 1.29, meaning that its share price is 29% more volatile than the S&P 500.

About Allegion

Allegion plc manufactures and sells mechanical and electronic security products and solutions worldwide. The company offers door controls and systems and exit devices; locks, locksets, portable locks, and key systems and services; electronic security products and access control systems; time, attendance, and workforce productivity systems; doors, accessories, and other. It also provides services and software, which includes inspection, maintenance, and repair services for its automatic entrance solutions; and software as a service, including access control, IoT integration, and workforce management solutions, as well as aftermarket services, design and installation offerings, and locksmith services. The company sells its products and solutions to end-users in commercial, institutional, and residential facilities, including education, healthcare, government, hospitality, retail, commercial office, and single and multi-family residential markets under the CISA, Interflex, LCN, Schlage, SimonsVoss, and Von Duprin brands. It sells its products and solutions through distribution and retail channels, such as specialty distribution, e-commerce, and wholesalers, as well as through various retail channels comprising do-it-yourself home improvement centers, online and e-commerce platforms, and small specialty showroom outlets. Allegion plc was incorporated in 2013 and is headquartered in Dublin, Ireland.

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.