Johnson Controls International plc (JCI) vs Advanced Drainage Systems, Inc. (WMS)

Johnson Controls International plc and Advanced Drainage Systems, Inc. are both Building Products & Equipment companies. Johnson Controls International plc is the larger, with a market value of $88.1B against $9.7B — 9.1× the size. Advanced Drainage Systems, Inc. trades at the lower P/E: 22.8× against 26.0×. Advanced Drainage Systems, Inc. grew revenue faster over the last twelve months: 10.4% against 6.81%. Johnson Controls International plc has the higher net margin (14.3% vs 14.0%) and the lower return on invested capital (8.35% vs 12.3%). Both pay a dividend; Johnson Controls International plc yields more (2.65% vs 0.35%). Across the 23 metrics below, Advanced Drainage Systems, Inc. leads on 18 and Johnson Controls International plc on 5.

Valuation

Metric JCI WMS Building Products & Equipment median
P/E 26.03 22.84 24.54
P/S 3.65 3.16 2.00
P/B 6.76 5.60 3.02
Price to free cash flow 28.50 18.49 18.49
EV/EBITDA 26.62 13.08 12.63
EV/Sales 4.01 3.65 2.14
Earnings yield 3.84% 4.38% 2.74%
Free cash flow yield 3.51% 5.41% 3.58%

Profitability

Metric JCI WMS Building Products & Equipment median
Gross margin 36.65% 38.65% 29.19%
Operating margin 11.95% 20.74% 6.84%
Net margin 14.32% 14.00% 4.05%
Free cash flow margin 12.82% 17.10% 8.72%
Return on equity 23.42% 25.71% 9.28%
Return on assets 8.71% 10.71% 2.88%
Return on invested capital 8.35% 12.34% 5.16%

Growth

Metric JCI WMS Building Products & Equipment median
Revenue growth (TTM) 6.81% 10.37% 3.11%
EPS growth (last fiscal year) 99.60% (5.56%) —
Revenue growth, 5-year CAGR 1.12% 9.00% 5.37%
Net income growth, 5-year CAGR 39.14% 18.13% 0.00%

Health

Metric JCI WMS Building Products & Equipment median
Debt to equity 0.70 0.95 0.43
Current ratio 1.00 2.12 1.82
Net debt to EBITDA 3.02 1.80 0.98

Dividend

Metric JCI WMS Building Products & Equipment median
Dividend yield 2.65% 0.35% 1.20%
Payout ratio 0.48 0.08 0.04

Size

Metric JCI WMS Building Products & Equipment median
Market cap 88.05b 9.72b 1.18b

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