Critical Comparison: MasterBrand (NYSE:MBC) & Johnson Controls International (NYSE:JCI)
by Danessa Lincoln · The Markets DailyMasterBrand (NYSE:MBC – Get Free Report) and Johnson Controls International (NYSE:JCI – Get Free Report) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their risk, institutional ownership, profitability, earnings, valuation, analyst recommendations and dividends.
Profitability
This table compares MasterBrand and Johnson Controls International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| MasterBrand | -3.49% | 3.65% | 1.60% |
| Johnson Controls International | 14.32% | 22.11% | 7.69% |
Analyst Recommendations
This is a summary of current recommendations and price targets for MasterBrand and Johnson Controls International, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| MasterBrand | 1 | 1 | 0 | 0 | 1.50 |
| Johnson Controls International | 1 | 10 | 12 | 0 | 2.48 |
MasterBrand currently has a consensus price target of $10.00, suggesting a potential upside of 42.76%. Johnson Controls International has a consensus price target of $155.75, suggesting a potential upside of 12.48%. Given MasterBrand’s higher possible upside, equities analysts clearly believe MasterBrand is more favorable than Johnson Controls International.
Institutional and Insider Ownership
87.3% of MasterBrand shares are owned by institutional investors. Comparatively, 90.1% of Johnson Controls International shares are owned by institutional investors. 2.8% of MasterBrand shares are owned by insiders. Comparatively, 0.3% of Johnson Controls International shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.
Volatility and Risk
MasterBrand has a beta of 1.43, suggesting that its stock price is 43% more volatile than the S&P 500. Comparatively, Johnson Controls International has a beta of 1.29, suggesting that its stock price is 29% more volatile than the S&P 500.
Valuation & Earnings
This table compares MasterBrand and Johnson Controls International”s top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| MasterBrand | $2.73 billion | 0.52 | $26.70 million | ($0.69) | -10.15 |
| Johnson Controls International | $25.00 billion | 3.36 | $3.29 billion | $5.75 | 24.08 |
Johnson Controls International has higher revenue and earnings than MasterBrand. MasterBrand is trading at a lower price-to-earnings ratio than Johnson Controls International, indicating that it is currently the more affordable of the two stocks.
Summary
Johnson Controls International beats MasterBrand on 11 of the 14 factors compared between the two stocks.
About MasterBrand
MasterBrand, Inc. engages in the manufacture and sale of residential cabinets in the United States and Canada. The company offers a range of residential cabinetry products for the kitchen, bathroom, and other parts of the home. It sells its products to remodeling and new construction markets through dealers, retailers, and builders. The company was formerly known as United Cabinet Incorporated. MasterBrand, Inc. was founded in 1954 and is headquartered in Beachwood, Ohio.
About Johnson Controls International
Johnson Controls International plc, together with its subsidiaries, engages in engineering, manufacturing, commissioning, and retrofitting building products and systems in the United States, Europe, the Asia Pacific, and internationally. It operates in four segments: Building Solutions North America, Building Solutions EMEA/LA, Building Solutions Asia Pacific, and Global Products. The company designs, sells, installs, and services heating, ventilating, air conditioning, controls, building management, refrigeration, integrated electronic security, integrated fire detection and suppression systems, and fire protection and security products for commercial, industrial, retail, small business, institutional, and governmental customers. It also provides energy efficiency solutions and technical services, including inspection, scheduled maintenance, and repair and replacement of mechanical and control systems, as well as data-driven smart building solutions to non-residential building and industrial applications. In addition, the company offers control software and software services for residential and commercial applications. Johnson Controls International plc was incorporated in 1885 and is headquartered in Cork, Ireland.