Johnson Controls International plc (JCI) vs Owens Corning Inc (OC)

Johnson Controls International plc and Owens Corning Inc are both Building Products & Equipment companies. Johnson Controls International plc is the larger, with a market value of $79.6B against $9.8B — 8.1× the size. Owens Corning Inc has negative trailing earnings, so its P/E is not meaningful; Johnson Controls International plc trades at 28.2×. Johnson Controls International plc grew revenue faster over the last twelve months: 8.77% against −8.38%. Johnson Controls International plc has the higher net margin (11.1% vs −4.42%) and the higher return on invested capital (10.4% vs 1.80%). Both pay a dividend; Owens Corning Inc yields more (2.56% vs 1.21%). Across the 22 metrics below, Johnson Controls International plc leads on 13 and Owens Corning Inc on 9.

Valuation

Metric JCI OC Building Products & Equipment median
P/E 28.18 n/m 23.33
P/S 3.11 1.01 2.09
P/B 2,283.64 3.04 2.85
Price to free cash flow 23.46 11.47 18.42
EV/EBITDA 23.55 7.40 13.29
EV/Sales 3.45 1.49 2.28
Earnings yield 3.55% (4.30%) 3.04%
Free cash flow yield 4.26% 8.72% 4.26%

Profitability

Metric JCI OC Building Products & Equipment median
Gross margin 37.07% 25.03% 31.88%
Operating margin 14.39% 2.33% 7.18%
Net margin 11.12% (4.42%) 4.11%
Free cash flow margin 13.27% 8.79% 6.41%
Return on equity 43.93% (11.18%) 5.95%
Return on assets 7.30% (3.37%) 3.90%
Return on invested capital 10.35% 1.80% 5.54%

Growth

Metric JCI OC Building Products & Equipment median
Revenue growth (TTM) 8.77% (8.38%) 6.27%
EPS growth (last fiscal year) (6.84%) (184.40%) (28.29%)
Revenue growth, 5-year CAGR 1.63% 7.45% 4.81%
Net income growth, 5-year CAGR 11.75% 0.00% 0.00%

Health

Metric JCI OC Building Products & Equipment median
Debt to equity 0.68 1.50 0.55
Current ratio 0.90 1.13 1.83
Net debt to EBITDA 1.99 2.14 1.45

Dividend

Metric JCI OC Building Products & Equipment median
Dividend yield 1.21% 2.56% 1.37%
Payout ratio 0.34 — 0.28

Size

Metric JCI OC Building Products & Equipment median
Market cap 79.63b 9.82b 3.22b

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