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 $88.1B against $9.5B — 9.2× the size. Owens Corning Inc has negative trailing earnings, so its P/E is not meaningful; Johnson Controls International plc trades at 26.0×. Johnson Controls International plc grew revenue faster over the last twelve months: 6.81% against −7.23%. Johnson Controls International plc has the higher net margin (14.3% vs −6.81%) and the higher return on invested capital (8.35% vs 0.36%). Both pay a dividend; Johnson Controls International plc yields more (2.65% vs 1.30%). 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 26.03 n/m 24.54
P/S 3.65 1.01 2.00
P/B 6.76 2.61 3.02
Price to free cash flow 28.50 10.23 18.49
EV/EBITDA 26.62 7.65 12.63
EV/Sales 4.01 1.50 2.14
Earnings yield 3.84% (6.51%) 2.74%
Free cash flow yield 3.51% 9.77% 3.58%

Profitability

Metric JCI OC Building Products & Equipment median
Gross margin 36.65% 25.98% 29.19%
Operating margin 11.95% 0.51% 6.84%
Net margin 14.32% (6.81%) 4.05%
Free cash flow margin 12.82% 9.87% 8.72%
Return on equity 23.42% (14.89%) 9.28%
Return on assets 8.71% (4.93%) 2.88%
Return on invested capital 8.35% 0.36% 5.16%

Growth

Metric JCI OC Building Products & Equipment median
Revenue growth (TTM) 6.81% (7.23%) 3.11%
EPS growth (last fiscal year) 99.60% (184.40%) —
Revenue growth, 5-year CAGR 1.12% 7.45% 5.37%
Net income growth, 5-year CAGR 39.14% 0.00% 0.00%

Health

Metric JCI OC Building Products & Equipment median
Debt to equity 0.70 1.34 0.43
Current ratio 1.00 1.16 1.82
Net debt to EBITDA 3.02 2.14 0.98

Dividend

Metric JCI OC Building Products & Equipment median
Dividend yield 2.65% 1.30% 1.20%
Payout ratio 0.48 0.12 0.04

Size

Metric JCI OC Building Products & Equipment median
Market cap 88.05b 9.54b 1.18b

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