MasterBrand (NYSE:MBC) & Johnson Controls International (NYSE:JCI) Financial Review

Johnson Controls International (NYSE:JCI) and MasterBrand (NYSE:MBC) are both industrials companies, but which is the better investment? We will compare the two companies based on the strength of their valuation, profitability, institutional ownership, risk, earnings, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Johnson Controls International and MasterBrand, as provided 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, suggesting a potential upside of 10.23%. MasterBrand has a consensus price target of $10.00, suggesting a potential upside of 52.56%. Given MasterBrand’s higher probable upside, analysts clearly believe MasterBrand is more favorable than Johnson Controls International.

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%

Insider & Institutional Ownership

90.0% of Johnson Controls International shares are owned by institutional investors. Comparatively, 87.3% of MasterBrand shares are owned by institutional investors. 0.3% of Johnson Controls International shares are owned by insiders. Comparatively, 2.8% of MasterBrand shares are owned by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Johnson Controls International and MasterBrand”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Johnson Controls International	$23.60 billion	3.63	$3.29 billion	$5.75	24.57
MasterBrand	$2.73 billion	0.49	$26.70 million	($0.69)	-9.50

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.

Risk & Volatility

Johnson Controls International has a beta of 1.29, indicating that its stock price is 29% more volatile than the S&P 500. Comparatively, MasterBrand has a beta of 1.43, indicating that its stock price is 43% more volatile than the S&P 500.

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.