Analyzing BALFOUR BEATTY/S (OTCMKTS:BAFYY) and Johnson Controls International (OTCMKTS:JCI)

BALFOUR BEATTY/S (OTCMKTS:BAFYY) and Johnson Controls International (NYSE:JCI) are both construction companies, but which is the better stock? We will contrast the two companies based on the strength of their institutional ownership, dividends, risk, analyst recommendations, profitability, valuation and earnings.

Dividends

BALFOUR BEATTY/S pays an annual dividend of $0.14 per share and has a dividend yield of 2.9%. Johnson Controls International pays an annual dividend of $1.04 per share and has a dividend yield of 2.4%. BALFOUR BEATTY/S pays out 20.0% of its earnings in the form of a dividend. Johnson Controls International pays out 36.7% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. BALFOUR BEATTY/S is clearly the better dividend stock, given its higher yield and lower payout ratio.

Earnings & Valuation

This table compares BALFOUR BEATTY/S and Johnson Controls International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
BALFOUR BEATTY/S $8.86 billion 0.19 $180.20 million $0.70 6.86
Johnson Controls International $31.40 billion 1.09 $2.16 billion $2.83 15.15

Johnson Controls International has higher revenue and earnings than BALFOUR BEATTY/S. BALFOUR BEATTY/S 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 BALFOUR BEATTY/S and Johnson Controls International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
BALFOUR BEATTY/S N/A N/A N/A
Johnson Controls International 22.38% 9.02% 4.15%

Volatility & Risk

BALFOUR BEATTY/S has a beta of 0.8, indicating that its share price is 20% less volatile than the S&P 500. Comparatively, Johnson Controls International has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for BALFOUR BEATTY/S and Johnson Controls International, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
BALFOUR BEATTY/S 0 1 0 0 2.00
Johnson Controls International 0 6 5 0 2.45

Johnson Controls International has a consensus target price of $38.78, indicating a potential downside of 9.55%. Given Johnson Controls International’s stronger consensus rating and higher possible upside, analysts plainly believe Johnson Controls International is more favorable than BALFOUR BEATTY/S.

Institutional and Insider Ownership

0.1% of BALFOUR BEATTY/S shares are owned by institutional investors. Comparatively, 90.6% of Johnson Controls International shares are owned by institutional investors. 0.5% of Johnson Controls International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.

Summary

Johnson Controls International beats BALFOUR BEATTY/S on 14 of the 16 factors compared between the two stocks.

About BALFOUR BEATTY/S

Balfour Beatty Plc engages in the provision of infrastructure services. It offers a range of capabilities in construction, civil engineering and mechanical & electrical engineering services. It operates through following business segments: Construction Services, Support Services, Infrastructure Investments, and Corporate Activities. The Construction Services segment includes activities resulting in the physical construction of an asset. The Support Services segment supports existing assets or functions such as asset maintenance and refurbishment. The Infrastructure Investments segment involves in the acquisition, operation, and disposal of infrastructure assets such as roads, hospitals, student accommodation, military housing, offshore transmission networks, waste and biomass, and other concessions. The company was founded by George Balfour and Andrew Beatty on January 12, 1909 and is headquartered in London, the United Kingdom.

About Johnson Controls International

Johnson Controls International plc operates as a diversified technology and multi industrial company worldwide. The company operates through Building Technologies & Solutions and Power Solutions segments. The company designs, sells, installs, and services heating, ventilating, and air conditioning systems, controls systems, integrated electronic security systems, and integrated fire detection and suppression systems for commercial, industrial, retail, small business, institutional, and governmental customers; and energy efficiency solutions and technical services, including inspection, scheduled maintenance, and repair and replacement of mechanical and control systems, to non-residential building and industrial applications. It also offers lead-acid automotive batteries for passenger cars, light trucks, and utility vehicles, as well as advanced battery technologies to power start-stop, hybrid, and electric vehicles. The company was formerly known as Johnson Controls, Inc. and changed its name to Johnson Controls International plc in September 2016. Johnson Controls International plc was founded in 1885 and is headquartered in Cork, Ireland.

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