JCI vs EMR

For growth investors, Emerson Electric Co.

(EMR) is the stronger pick with 3. 0% revenue growth year-over-year, versus 2. 8% for Johnson Controls International plc (JCI). Emerson Electric Co. (EMR) offers the better valuation at 36. 6x trailing P/E (22. 8x forward), making it the more compelling value choice. Analysts rate Johnson Controls International plc (JCI) a "Buy" — based on 45 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Emerson Electric Co.

(EMR) is the cheapest at 36. 6x versus Johnson Controls International plc at 54. 4x. On forward P/E, Emerson Electric Co. is actually cheaper at 22. 8x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Johnson Controls International plc wins at 1. 18x versus Emerson Electric Co. 's 5. 04x — a reasonable growth-adjusted valuation.

Over the past 5 years, Johnson Controls International plc (JCI) delivered a total return of +131.

7%, compared to +69. 0% for Emerson Electric Co. (EMR). Over 10 years, the gap is even starker: JCI returned +354. 6% versus EMR's +215. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Johnson Controls International plc (JCI) is the lower-risk stock at 0.

97β versus Emerson Electric Co. 's 1. 52β — meaning EMR is approximately 56% more volatile than JCI relative to the S&P 500. On balance sheet safety, Emerson Electric Co. (EMR) carries a lower debt/equity ratio of 68% versus 86% for Johnson Controls International plc — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Emerson Electric Co.

(EMR) is pulling ahead at 3. 0% versus 2. 8% for Johnson Controls International plc (JCI). On earnings-per-share growth, the picture is similar: Emerson Electric Co. grew EPS 17. 8% year-over-year, compared to 4. 4% for Johnson Controls International plc. Over a 3-year CAGR, EMR leads at 9. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

Johnson Controls International plc (JCI) is the more profitable company, earning 13.

9% net margin versus 12. 7% for Emerson Electric Co. — meaning it keeps 13. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: EMR leads at 19. 6% versus 12. 0% for JCI. At the gross margin level — before operating expenses — EMR leads at 52. 8%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, Johnson Controls International plc (JCI) is the more undervalued stock at a PEG of 1. 18x versus Emerson Electric Co. 's 5. 04x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Emerson Electric Co. (EMR) trades at 22. 8x forward P/E versus 30. 2x for Johnson Controls International plc — 7. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for EMR: 9. 5% to $161. 92.

All stocks in this comparison pay dividends.

Emerson Electric Co. (EMR) offers the highest yield at 1. 4%, versus 1. 0% for Johnson Controls International plc (JCI).

For long-horizon retirement investors, Johnson Controls International plc (JCI) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

97), 1. 0% yield, +354. 6% 10Y return). Emerson Electric Co. (EMR) carries a higher beta of 1. 52 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (JCI: +354. 6%, EMR: +215. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.