OTIS vs JCI

For growth investors, Johnson Controls International plc (JCI) is the stronger pick with 2.

8% revenue growth year-over-year, versus 1. 2% for Otis Worldwide Corporation (OTIS). Otis Worldwide Corporation (OTIS) offers the better valuation at 22. 1x trailing P/E (18. 4x 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, Otis Worldwide Corporation (OTIS) is the cheapest at 22.

1x versus Johnson Controls International plc at 52. 9x. On forward P/E, Otis Worldwide Corporation is actually cheaper at 18. 4x. 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. 15x versus Otis Worldwide Corporation's 1. 67x — a reasonable growth-adjusted valuation.

Over the past 5 years, Johnson Controls International plc (JCI) delivered a total return of +122.

9%, compared to +7. 7% for Otis Worldwide Corporation (OTIS). Over 10 years, the gap is even starker: JCI returned +343. 3% versus OTIS's +87. 8%. 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), Otis Worldwide Corporation (OTIS) is the lower-risk stock at 0.

39β versus Johnson Controls International plc's 0. 97β — meaning JCI is approximately 148% more volatile than OTIS relative to the S&P 500.

By revenue growth (latest reported year), Johnson Controls International plc (JCI) is pulling ahead at 2.

8% versus 1. 2% for Otis Worldwide Corporation (OTIS). On earnings-per-share growth, the picture is similar: Johnson Controls International plc grew EPS 4. 4% year-over-year, compared to -14. 0% for Otis Worldwide Corporation. Over a 3-year CAGR, JCI leads at 4. 6% 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 9. 6% for Otis Worldwide Corporation — meaning it keeps 13. 9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: OTIS leads at 14. 8% versus 12. 0% for JCI. At the gross margin level — before operating expenses — JCI leads at 36. 4%, 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. 15x versus Otis Worldwide Corporation's 1. 67x. A PEG below 1. 5 suggests fair-to-attractive pricing relative to expected growth. On forward earnings alone, Otis Worldwide Corporation (OTIS) trades at 18. 4x forward P/E versus 29. 4x for Johnson Controls International plc — 11. 0x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for OTIS: 18. 8% to $92. 00.

All stocks in this comparison pay dividends.

Otis Worldwide Corporation (OTIS) offers the highest yield at 2. 1%, versus 1. 1% for Johnson Controls International plc (JCI).

For long-horizon retirement investors, Otis Worldwide Corporation (OTIS) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.

39), 2. 1% yield). Both have compounded well over 10 years (OTIS: +87. 8%, JCI: +343. 3%), 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.