Johnson Controls International (NYSE:JCI) versus MasterBrand (NYSE:MBC) Financial Analysis

Johnson Controls International (NYSE:JCI) and MasterBrand (NYSE:MBC) are both industrials companies, but which is the superior investment? We will compare the two businesses based on the strength of their dividends, valuation, earnings, analyst recommendations, institutional ownership, profitability and risk.

Valuation & Earnings

This table compares Johnson Controls International and MasterBrand”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Johnson Controls International	$23.60 billion	3.75	$3.29 billion	$5.75	25.41
MasterBrand	$2.73 billion	0.55	$26.70 million	($0.69)	-10.79

Johnson Controls International has higher revenue and earnings than MasterBrand. MasterBrand 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.

Volatility & Risk

Johnson Controls International has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500. Comparatively, MasterBrand has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500.

Institutional & Insider Ownership

90.0% of Johnson Controls International shares are held by institutional investors. Comparatively, 87.3% of MasterBrand shares are held by institutional investors. 0.3% of Johnson Controls International shares are held by company insiders. Comparatively, 2.8% of MasterBrand shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Analyst Recommendations

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

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Johnson Controls International	1	10	12	0	2.48
MasterBrand	1	1	0	0	1.50

Johnson Controls International currently has a consensus price target of $155.75, suggesting a potential upside of 6.59%. MasterBrand has a consensus price target of $10.00, suggesting a potential upside of 34.32%. Given MasterBrand’s higher probable upside, analysts clearly believe MasterBrand is more favorable than Johnson Controls International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Johnson Controls International	14.32%	22.11%	7.69%
MasterBrand	-3.49%	3.65%	1.60%

Summary

Johnson Controls International beats MasterBrand on 11 of the 14 factors compared between the two stocks.

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.

About MasterBrand

MasterBrand, Inc. engages in the manufacture and sale of residential cabinets in the United States and Canada. The company offers a range of residential cabinetry products for the kitchen, bathroom, and other parts of the home. It sells its products to remodeling and new construction markets through dealers, retailers, and builders. The company was formerly known as United Cabinet Incorporated. MasterBrand, Inc. was founded in 1954 and is headquartered in Beachwood, Ohio.