LRCX, SHW, DE, NOC, LMT are JCI's peers in Industrials sector that have:
Lower valuation (P/EBIT) compared to JCI
But higher revenue and operating income growth
This disconnect between valuation and performance could mean that you are better off buying LRCX, SHW, DE, NOC, LMT vs JCI
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CompanyP/EBIT*OpInc* Growth (LTM)OpInc* Growth (3-yr average)Rev Growth (LTM)Rev Growth (3-yr average)Johnson Controls (JCI) 44.4x 1.1% -4.0% -8.3% -0.7%LAM Research (LRCX) 26.8x 42% 18% 25% 9.8%Sherwin-Williams (SHW) 24.9x 23% 19% 2.6% 7.2%Deere & company (DE) 17x 11% 9.3% -4.8% 7.1%Northrop Grumman (NOC) 14.6x 42% 2.4% 8.7% 12%Lockheed Martin (LMT) 12.3x 1.2% 8.8% 9.3% 9.4%
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*OpInc = Operating Income, P/EBIT = Price To Operating Income Ratio