Reviewing Johnson Controls International (NYSE:JCI) and DIRTT Environmental Solutions (NASDAQ:DRTT)

Johnson Controls International (NYSE:JCI) and DIRTT Environmental Solutions (NASDAQ:DRTT) are both industrials companies, but which is the superior investment? We will compare the two companies based on the strength of their risk, analyst recommendations, earnings, valuation, profitability, dividends and institutional ownership.

Institutional and Insider Ownership

90.0% of Johnson Controls International shares are owned by institutional investors. Comparatively, 58.7% of DIRTT Environmental Solutions shares are owned by institutional investors. 0.3% of Johnson Controls International shares are owned by insiders. Comparatively, 40.5% of DIRTT Environmental Solutions shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Earnings & Valuation

This table compares Johnson Controls International and DIRTT Environmental Solutions”s gross 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	3.67	$3.29 billion	$5.75	24.87
DIRTT Environmental Solutions	$170.63 million	0.37	-$54.96 million	($0.25)	-2.41

Johnson Controls International has higher revenue and earnings than DIRTT Environmental Solutions. DIRTT Environmental Solutions 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.

Analyst Recommendations

This is a breakdown of recent recommendations for Johnson Controls International and DIRTT Environmental Solutions, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Johnson Controls International	1	10	12	0	2.48
DIRTT Environmental Solutions	0	0	0	0	0.00

Johnson Controls International currently has a consensus price target of $155.50, suggesting a potential upside of 8.75%. Given Johnson Controls International’s stronger consensus rating and higher possible upside, equities analysts clearly believe Johnson Controls International is more favorable than DIRTT Environmental Solutions.

Profitability

This table compares Johnson Controls International and DIRTT Environmental Solutions’ 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%
DIRTT Environmental Solutions	-12.81%	-150.32%	-15.10%

Volatility and 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, DIRTT Environmental Solutions has a beta of 1.2, indicating that its share price is 20% more volatile than the S&P 500.

Summary

Johnson Controls International beats DIRTT Environmental Solutions on 13 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 DIRTT Environmental Solutions

DIRTT Environmental Solutions Ltd. operates as a interior construction company in Canada. Its ICE software provides the industrialized construction system to design, visualize, organize, configure, and install the job. The company offers interior solutions to doors, casework, timber, electrical, networks, access floors, solid, glass, combination, leaf folding, and headwalls. It serves retail, technology, hospitality, manufacturing, energy, healthcare, education, government, military, professional, and financial service sectors. DIRTT Environmental Solutions Ltd. was incorporated in 2003 and is headquartered in Calgary, Canada.