Reviewing Johnson Controls International (NYSE:JCI) and Hayward (NYSE:HAYW)

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

Volatility & Risk

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

Analyst Ratings

This is a breakdown of current ratings and price targets for Hayward and Johnson Controls International, as provided by MarketBeat.com.

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

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

Institutional & Insider Ownership

90.0% of Johnson Controls International shares are owned by institutional investors. 4.7% of Hayward shares are owned by company insiders. Comparatively, 0.3% of Johnson Controls International 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.

Profitability

This table compares Hayward and Johnson Controls International’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Hayward	13.83%	11.61%	5.91%
Johnson Controls International	14.32%	22.11%	7.69%

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Hayward	$1.12 billion	2.68	$151.57 million	$0.74	19.14
Johnson Controls International	$23.60 billion	3.58	$3.29 billion	$5.75	24.23

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.

Summary

Johnson Controls International beats Hayward on 12 of the 14 factors compared between the two stocks.

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.

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.