Johnson Controls International (NYSE:JCI) and Plug Power (NASDAQ:PLUG) are both large-cap industrial products companies, but which is the superior investment? We will compare the two businesses based on the strength of their profitability, risk, institutional ownership, earnings, dividends, analyst recommendations and valuation.
Volatility and Risk
Johnson Controls International has a beta of 1, suggesting that its stock price has a similar volatility profile to the S&P 500.Comparatively, Plug Power has a beta of 1.81, suggesting that its stock price is 81% more volatile than the S&P 500.
Analyst Ratings
This is a summary of current recommendations and price targets for Johnson Controls International and Plug Power, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
|---|
| Johnson Controls International | 0 | 9 | 11 | 0 | 2.55 |
| Plug Power | 1 | 1 | 12 | 0 | 2.79 |
Johnson Controls International currently has a consensus target price of $46.2105, suggesting a potential downside of 19.56%. Plug Power has a consensus target price of $52.6923, suggesting a potential upside of 8.02%. Given Plug Power's stronger consensus rating and higher possible upside, analysts clearly believe Plug Power is more favorable than Johnson Controls International.
Valuation and Earnings
This table compares Johnson Controls International and Plug Power's revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
|---|
| Johnson Controls International | $22.32 billion | 1.85 | $631 million | $2.24 | 25.65 |
| Plug Power | $230.24 million | 99.42 | $-85,460,000.00 | ($0.34) | -143.47 |
Johnson Controls International has higher revenue and earnings than Plug Power. Plug Power 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.
Insider and Institutional Ownership
89.6% of Johnson Controls International shares are held by institutional investors. Comparatively, 50.9% of Plug Power shares are held by institutional investors. 0.6% of Johnson Controls International shares are held by insiders. Comparatively, 4.5% of Plug Power shares are held by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
Profitability
This table compares Johnson Controls International and Plug Power's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
|---|
| Johnson Controls International | 2.83% | 8.72% | 4.06% |
| Plug Power | -33.75% | -37.12% | -10.09% |
Summary
Johnson Controls International beats Plug Power on 8 of the 14 factors compared between the two stocks.
