Critical Analysis: Johnson Controls International (NYSE:JCI) versus Hayward (NYSE:HAYW)

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

Earnings & Valuation

This table compares Johnson Controls International and Hayward”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	3.58	$3.29 billion	$5.75	24.23
Hayward	$1.12 billion	2.68	$151.57 million	$0.74	19.14

Johnson Controls International has higher revenue and earnings than Hayward. Hayward 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.

Volatility & Risk

Johnson Controls International has a beta of 1.31, indicating that its share price is 31% more volatile than the S&P 500. Comparatively, Hayward has a beta of 1.09, indicating that its share price is 9% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Johnson Controls International and Hayward, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Johnson Controls International	1	10	12	0	2.48
Hayward	0	6	2	0	2.25

Johnson Controls International currently has a consensus price target of $155.50, suggesting a potential upside of 11.61%. Hayward has a consensus price target of $17.50, suggesting a potential upside of 23.59%. Given Hayward’s higher probable upside, analysts plainly believe Hayward is more favorable than Johnson Controls International.

Profitability

This table compares Johnson Controls International and Hayward’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%
Hayward	13.83%	11.61%	5.91%

Institutional & Insider Ownership

90.0% of Johnson Controls International shares are owned by institutional investors. 0.3% of Johnson Controls International shares are owned by insiders. Comparatively, 4.7% of Hayward shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Summary

Johnson Controls International beats Hayward on 12 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 Hayward

Hayward Holdings, Inc. designs, manufactures, and markets a portfolio of pool equipment and associated automation systems in North America, Europe, and internationally. The company offers pool equipment, including pumps, filters, robotics, suction and pressure cleaners, gas heaters and heat pumps, water features and landscape lighting, water sanitizers, salt chlorine generators, safety equipment, and in-floor automated cleaning systems, as well as LED illumination solutions. It sells its products through specialty distributors, retailers, and buying groups. The company was founded in 1925 and is headquartered in Charlotte, North Carolina.