Johnson Controls International plc (JCI) vs JPMorgan Chase & Co. (JPM): Which Is the Better Buy in 2026?
As of 2026-11-01, JCI is undervalued at $149, with a DCF intrinsic value of $214 and a margin of safety of 30%. JPM is undervalued at $337, with an intrinsic value of $633 and a margin of safety of 47%. Of the two, JPM has the wider margin of safety.
Rewards
- ★Share count has been reduced by 11% over the past 4 years through buybacks, increasing each share's claim on earnings.
- ★Each dollar of retained earnings has created $5.60 of earning power — management is an exceptional capital allocator.
- ★JPMorgan Chase & Co. scores 90/100 on the Economic Moat Score (Wide Moat), with revenue predictability as the strongest competitive dimension.
- ★Each dollar of retained earnings has created $1.79 of earning power — management is creating shareholder value.
Risks
- ⚠Insiders have sold $4.7M worth of stock in the past 3 months — significant insider liquidation.
- ⚠Free cash flow has declined at a 13.7% CAGR over the past 4 years — a concerning trend.
- ⚠Gross margin of 0.0% is low, suggesting a competitive or commodity-like market with limited pricing power.
- ⚠Altman Z-Score of 0.30 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.
- ⚠31 insider sales with no purchases over the past 12 months — a persistent pattern of insider selling.
Key Valuation Metrics
Learn more →Historical Fundamentals
Learn more →Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.
$1 Retained Earnings Test
Learn more →> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
Discounted Cash Flow (DCF) Analysis
Learn more →Reverse DCF — Market-Implied Growth
Learn more →What growth rate is the market pricing in at $149?
The market implies +11.6% Owner Earnings growth, below historical trends — potential opportunity.
Standard FCF implies a more demanding +14.0%, reflecting heavy growth investment expected to generate future returns.
Requires positive FCF to compute implied growth rate.
Economic Moat Score
Learn more →Narrow moat with revenue predictability as the key competitive advantage. Improving roic consistency would strengthen the moat.
Wide moat driven primarily by revenue predictability. Reinvestment Efficiency is the area most vulnerable to competitive pressure.
Forensic Accounting
Learn more →M-Score Trend
M-Score Trend
Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
Ownership Breakdown
Learn more →High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.
Insider Buying Activity
Learn more →Open market purchases · includes direct & indirect ownership · excludes option exercises.
Insider Selling Activity
Learn more →Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.
🎭 Mr. Market's Mood
Learn more →"Market is pricing this stock without strong emotion in either direction"
"Market is optimistic — be cautious and ensure you have a margin of safety"
Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
⚖️ Buffett Signal
Learn more →The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.
Frequently Asked Questions: JCI vs JPM
Is Johnson Controls International plc or JPMorgan Chase & Co. more undervalued in 2026?▼
Based on our discounted cash flow model, JPM trades at a 46.7% margin of safety (intrinsic value $633 vs. price $337), compared to JCI's 30.4% margin of safety (intrinsic $214 vs. $149).
Which stock has a wider economic moat, Johnson Controls International plc or JPMorgan Chase & Co.?▼
JPM scores 90/100 (Wide moat), while JCI scores 67/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.
Is JPMorgan Chase & Co. in financial distress?▼
JPM's Altman Z-Score of 0.3 places it in the Distress zone, signaling elevated bankruptcy risk. JCI scores 2.6 (Grey zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.
Which stock has higher return on invested capital, Johnson Controls International plc or JPMorgan Chase & Co.?▼
JCI earns 15.2% ROIC versus JPM's 4.8%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.
Which dividend is safer, Johnson Controls International plc's or JPMorgan Chase & Co.'s?▼
JPM's dividend earns a safety score of 79/100 (Safe), compared to JCI's 64/100 (Safe). JPM has raised its dividend for 3 consecutive years.