Comparing MasterBrand (NYSE:MBC) and Johnson Controls International (NYSE:JCI)
by Jessica Moore · The Cerbat GemJohnson Controls International (NYSE:JCI – Get Free Report) and MasterBrand (NYSE:MBC – Get Free Report) are both industrials companies, but which is the better investment? We will contrast the two businesses based on the strength of their valuation, risk, earnings, dividends, analyst recommendations, institutional ownership and profitability.
Analyst Ratings
This is a summary of current ratings and recommmendations for Johnson Controls International and MasterBrand, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Johnson Controls International | 1 | 10 | 12 | 0 | 2.48 |
| MasterBrand | 1 | 1 | 0 | 0 | 1.50 |
Johnson Controls International currently has a consensus price target of $155.75, indicating a potential upside of 6.59%. MasterBrand has a consensus price target of $10.00, indicating a potential upside of 34.32%. Given MasterBrand’s higher possible upside, analysts plainly believe MasterBrand is more favorable than Johnson Controls International.
Valuation and Earnings
This table compares Johnson Controls International and MasterBrand”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Johnson Controls International | $23.60 billion | 3.75 | $3.29 billion | $5.75 | 25.41 |
| MasterBrand | $2.73 billion | 0.55 | $26.70 million | ($0.69) | -10.79 |
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.
Profitability
This table compares Johnson Controls International and MasterBrand’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Johnson Controls International | 14.32% | 22.11% | 7.69% |
| MasterBrand | -3.49% | 3.65% | 1.60% |
Risk & Volatility
Johnson Controls International has a beta of 1.29, meaning that its stock price is 29% more volatile than the S&P 500. Comparatively, MasterBrand has a beta of 1.43, meaning that its stock price is 43% more volatile than the S&P 500.
Institutional & Insider Ownership
90.0% of Johnson Controls International shares are held by institutional investors. Comparatively, 87.3% of MasterBrand shares are held by institutional investors. 0.3% of Johnson Controls International shares are held by insiders. Comparatively, 2.8% of MasterBrand shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
Summary
Johnson Controls International beats MasterBrand on 11 of the 14 factors compared between the two stocks.
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.
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.