Contrasting Federal-Mogul Holdings (FDML) and Johnson Controls International PLC (JCI)
Johnson Controls International PLC (NYSE: JCI) and Federal-Mogul Holdings (NASDAQ:FDML) are both industrial products companies, but which is the superior stock? We will contrast the two companies based on the strength of their earnings, valuation, profitabiliy, institutional ownership, analyst recommendations, risk and dividends.
Insider and Institutional Ownership
84.1% of Johnson Controls International PLC shares are owned by institutional investors. Comparatively, 98.5% of Federal-Mogul Holdings shares are owned by institutional investors. 0.5% of Johnson Controls International PLC shares are owned by company insiders. Comparatively, 82.1% of Federal-Mogul Holdings shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Earnings and Valuation
This table compares Johnson Controls International PLC and Federal-Mogul Holdings’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Johnson Controls International PLC||$42.60 billion||0.96||$4.00 billion||($0.51)||-84.46|
Johnson Controls International PLC has higher revenue and earnings than Federal-Mogul Holdings. Johnson Controls International PLC is trading at a lower price-to-earnings ratio than Federal-Mogul Holdings, indicating that it is currently the more affordable of the two stocks.
This table compares Johnson Controls International PLC and Federal-Mogul Holdings’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Johnson Controls International PLC||-1.69%||11.97%||4.84%|
Volatility and Risk
Johnson Controls International PLC has a beta of 1.28, indicating that its stock price is 28% more volatile than the S&P 500. Comparatively, Federal-Mogul Holdings has a beta of 2.93, indicating that its stock price is 193% more volatile than the S&P 500.
This is a breakdown of recent recommendations and price targets for Johnson Controls International PLC and Federal-Mogul Holdings, as reported by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Johnson Controls International PLC||0||7||12||0||2.63|
Johnson Controls International PLC presently has a consensus target price of $50.88, indicating a potential upside of 17.28%. Given Johnson Controls International PLC’s higher probable upside, equities research analysts plainly believe Johnson Controls International PLC is more favorable than Federal-Mogul Holdings.
Johnson Controls International PLC pays an annual dividend of $1.00 per share and has a dividend yield of 2.3%. Federal-Mogul Holdings does not pay a dividend. Johnson Controls International PLC pays out -194.7% of its earnings in the form of a dividend. Johnson Controls International PLC has raised its dividend for 6 consecutive years.
Johnson Controls International PLC beats Federal-Mogul Holdings on 7 of the 13 factors compared between the two stocks.
About Johnson Controls International PLC
Johnson Controls, Inc. is a technology company. The Company provides products, services and solutions to optimize energy and operational efficiencies of buildings; lead-acid automotive batteries and advanced batteries for hybrid and electric vehicles, and seating and interior systems for automobiles. The Company operates in two segments: Building Efficiency and Power Solutions. The Building Efficiency segment offers designing, producing, marketing and installing integrated heating, ventilating and air conditioning (HVAC) systems, building management systems, controls, security and mechanical equipment. The Power Solutions segment offers lead-acid automotive batteries for passenger cars, light trucks and utility vehicles. The Company serves both automotive original equipment manufacturers (OEMs) and the general vehicle battery aftermarket. The Company also supplies advanced battery technologies to power start-stop, hybrid and electric vehicles.
About Federal-Mogul Holdings
Federal-Mogul Holdings Corp, formerly Federal-Mogul Corporation, is a global supplier of technology and innovation in vehicle and industrial products for fuel economy, emissions reduction and safety systems. The Company serves original equipment manufacturers (OEM) and servicers (OES) (collectively OE) of automotive, light, medium and heavy-duty commercial vehicles, off-road, agricultural, marine, rail, aerospace, power generation and industrial equipment, as well as the worldwide aftermarket. As of December 31, 2012, the Company had OEM products included on more than 300 global vehicle platforms and more than 700 global powertrains used in light, medium and heavy-duty vehicles. The Company offers brands, OE replacement and premium products for all aftermarket customers.
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