Johnson Controls International plc (JCI) vs Trane Technologies plc (TT)

Johnson Controls International plc and Trane Technologies plc are both Building Products & Equipment companies. Trane Technologies plc is the larger, with a market value of $100.6B against $89.4B — 1.1× the size. Johnson Controls International plc trades at the lower P/E: 25.2× against 34.8×. Trane Technologies plc grew revenue faster over the last twelve months: 7.03% against 6.81%. Johnson Controls International plc has the higher net margin (14.3% vs 13.3%) and the lower return on invested capital (8.35% vs 20.9%). Both pay a dividend; Johnson Controls International plc yields more (1.10% vs 0.89%). Across the 23 metrics below, Johnson Controls International plc leads on 12 and Trane Technologies plc on 11.

Valuation

Metric JCI TT Building Products & Equipment median
P/E 25.21 34.76 23.15
P/S 3.54 4.57 2.02
P/B 6.54 11.73 2.81
Price to free cash flow 27.60 28.43 16.84
EV/EBITDA 25.86 23.94 12.85
EV/Sales 3.89 4.71 2.04
Earnings yield 3.97% 2.88% 2.76%
Free cash flow yield 3.62% 3.52% 4.23%

Profitability

Metric JCI TT Building Products & Equipment median
Gross margin 36.65% 35.39% 29.19%
Operating margin 11.95% 17.94% 6.99%
Net margin 14.32% 13.28% 4.05%
Free cash flow margin 12.82% 16.06% 7.60%
Return on equity 23.42% 35.74% 9.28%
Return on assets 8.71% 13.13% 2.88%
Return on invested capital 8.35% 20.85% 5.16%

Growth

Metric JCI TT Building Products & Equipment median
Revenue growth (TTM) 6.81% 7.03% 3.11%
EPS growth (last fiscal year) 99.60% 15.48% (34.13%)
Revenue growth, 5-year CAGR 1.12% 11.35% 5.37%
Net income growth, 5-year CAGR 39.14% 27.84% 0.00%

Health

Metric JCI TT Building Products & Equipment median
Debt to equity 0.70 0.53 0.43
Current ratio 1.00 1.07 1.82
Net debt to EBITDA 3.02 0.66 0.98

Dividend

Metric JCI TT Building Products & Equipment median
Dividend yield 1.10% 0.89% 1.43%
Payout ratio 0.28 0.31 0.29

Size

Metric JCI TT Building Products & Equipment median
Market cap 89.43b 100.63b 1.17b

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