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

Johnson Controls International plc and Trane Technologies plc are both Building Products & Equipment companies. Johnson Controls International plc and Trane Technologies plc are of similar size ($96.8B and $88.1B). Johnson Controls International plc trades at the lower P/E: 26.0× against 34.5×. 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 (2.65% vs 1.17%). Across the 23 metrics below, Trane Technologies plc leads on 13 and Johnson Controls International plc on 10.

Valuation

Metric JCI TT Building Products & Equipment median
P/E 26.03 34.48 24.54
P/S 3.65 4.53 2.00
P/B 6.76 11.64 3.02
Price to free cash flow 28.50 28.20 18.49
EV/EBITDA 26.62 23.75 12.63
EV/Sales 4.01 4.68 2.14
Earnings yield 3.84% 2.90% 2.74%
Free cash flow yield 3.51% 3.55% 3.58%

Profitability

Metric JCI TT Building Products & Equipment median
Gross margin 36.65% 35.39% 29.19%
Operating margin 11.95% 17.94% 6.84%
Net margin 14.32% 13.28% 4.05%
Free cash flow margin 12.82% 16.06% 8.72%
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% —
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 2.65% 1.17% 1.20%
Payout ratio 0.48 0.35 0.04

Size

Metric JCI TT Building Products & Equipment median
Market cap 88.05b 96.79b 1.18b

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