Griffon (NYSE:GFF) versus Johnson Controls International (NYSE:JCI) Financial Survey

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

Dividends

Griffon pays an annual dividend of $0.88 per share and has a dividend yield of 0.8%. Johnson Controls International pays an annual dividend of $1.60 per share and has a dividend yield of 1.1%. Griffon pays out 22.4% of its earnings in the form of a dividend. Johnson Controls International pays out 27.8% 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. Griffon has raised its dividend for 1 consecutive years and Johnson Controls International has raised its dividend for 4 consecutive years. Johnson Controls International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Valuation & Earnings

This table compares Griffon and Johnson Controls International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Griffon	$2.52 billion	1.90	$51.11 million	$3.92	26.99
Johnson Controls International	$23.60 billion	3.89	$3.29 billion	$5.75	26.34

Johnson Controls International has higher revenue and earnings than Griffon. Johnson Controls International is trading at a lower price-to-earnings ratio than Griffon, indicating that it is currently the more affordable of the two stocks.

Analyst Ratings

This is a breakdown of current recommendations for Griffon and Johnson Controls International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Griffon	0	1	1	2	3.25
Johnson Controls International	1	10	11	1	2.52

Griffon currently has a consensus target price of $122.50, indicating a potential upside of 15.77%. Johnson Controls International has a consensus target price of $154.80, indicating a potential upside of 2.20%. Given Griffon’s stronger consensus rating and higher probable upside, research analysts plainly believe Griffon is more favorable than Johnson Controls International.

Insider & Institutional Ownership

73.2% of Griffon shares are held by institutional investors. Comparatively, 90.0% of Johnson Controls International shares are held by institutional investors. 10.2% of Griffon shares are held by company insiders. Comparatively, 0.3% of Johnson Controls International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.

Volatility & Risk

Griffon has a beta of 1.44, meaning that its share price is 44% more volatile than the S&P 500. Comparatively, Johnson Controls International has a beta of 1.31, meaning that its share price is 31% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Griffon	8.08%	249.31%	12.64%
Johnson Controls International	14.32%	22.11%	7.69%

About Griffon

Griffon Corporation, through its subsidiaries, provides consumer and professional, and home and building products in the United States, Europe, Canada, Australia, and internationally. The company operates through two segments: Home and Building Products, and Consumer and Professional Products. The Home and Building Products segment manufactures and markets residential and commercial sectional garage doors, rolling steel service doors, fire doors, shutters, steel security grilles, and room dividers for the use in commercial construction and repair, and home remodeling applications. The segment also sells related products, such as garage door openers. The Consumer and Professional Products segment manufactures and markets long-handled engineered tools, including spades, hoes, cultivators, weeders, post hole diggers, scrapers, edgers and forks; wheelbarrows and lawn carts; snow tools comprising pushers, roof rakes, sled sleigh shovels, scoops, and ice scrapers; and pruning products, such as pruners, loppers, shears, and other tools. The segment also offers striking tools, including axes, picks, mattocks, mauls, wood splitters, sledgehammers, pry bars, and repair handles; traditional and gardening hand tools comprising hammers, screwdrivers, pliers, adjustable wrenches, handsaws, tape measures, levels, clamps, trowels, cultivators, weeders, and other hand tools; indoor and outdoor planters and lawn accessories; and garden hoses and hose reels. In addition, the segment provides home organization products, including wire and wood shelving, containers, storage cabinets, and other closet and home organization accessories; residential, industrial, and commercial fans; and cleaning products, such as brooms, brushes, squeegees, and other cleaning products. The company was formerly known as Instrument Systems Corporation and changed its name to Griffon Corporation in June 1992. Griffon Corporation was founded in 1774 and is headquartered in New York, New York.

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.