Comparing BlueLinx (NYSE:BXC) and Johnson Controls International (NYSE:JCI)

BlueLinx (NYSE:BXC) and Johnson Controls International (NYSE:JCI) are both construction companies, but which is the better business? We will compare the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, earnings, dividends and analyst recommendations.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for BlueLinx and Johnson Controls International, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
BlueLinx	0	1	2	0	2.67
Johnson Controls International	0	9	9	0	2.50

BlueLinx currently has a consensus target price of $91.00, indicating a potential upside of 22.70%. Johnson Controls International has a consensus target price of $105.1667, indicating a potential upside of 0.83%. Given BlueLinx’s stronger consensus rating and higher possible upside, research analysts plainly believe BlueLinx is more favorable than Johnson Controls International.

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
BlueLinx	$2.95 billion	0.20	$53.12 million	$3.37	22.01
Johnson Controls International	$22.95 billion	2.99	$1.71 billion	$3.37	30.95

Johnson Controls International has higher revenue and earnings than BlueLinx. BlueLinx 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.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
BlueLinx	0.96%	3.48%	1.39%
Johnson Controls International	9.53%	14.71%	5.91%

Volatility & Risk

BlueLinx has a beta of 1.74, suggesting that its stock price is 74% more volatile than the S&P 500. Comparatively, Johnson Controls International has a beta of 1.3, suggesting that its stock price is 30% more volatile than the S&P 500.

Insider and Institutional Ownership

90.8% of BlueLinx shares are held by institutional investors. Comparatively, 90.1% of Johnson Controls International shares are held by institutional investors. 3.8% of BlueLinx shares are held by company insiders. Comparatively, 0.5% of Johnson Controls International shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Summary

Johnson Controls International beats BlueLinx on 8 of the 13 factors compared between the two stocks.

About BlueLinx

BlueLinx Holdings Inc., together with its subsidiaries, engages in the distribution of residential and commercial building products in the United States. It distributes specialty products, including engineered wood, siding, millwork, outdoor living, specialty lumber and panels, and industrial products; and structural products, such as lumber, plywood, oriented strand boards, rebars and remesh, as well as other wood products that are used for structural support in construction projects. It also provides various value-added services and solutions to customers and suppliers. The company serves national home centers, pro dealers, cooperatives, specialty distributors, regional and local dealers, and industrial manufacturers. BlueLinx Holdings Inc. was incorporated in 2004 and is headquartered in Marietta, Georgia.

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.