Analyzing Honeywell (HON) & Its Rivals

Honeywell (NYSE: HON) is one of 45 public companies in the “Motor vehicle parts & accessories” industry, but how does it contrast to its rivals? We will compare Honeywell to similar companies based on the strength of its risk, valuation, dividends, earnings, profitability, institutional ownership and analyst recommendations.

Dividends

Honeywell pays an annual dividend of $2.98 per share and has a dividend yield of 2.0%. Honeywell pays out 41.9% of its earnings in the form of a dividend. As a group, “Motor vehicle parts & accessories” companies pay a dividend yield of 1.7% and pay out 21.3% of their earnings in the form of a dividend. Honeywell has raised its dividend for 7 consecutive years.

Valuation and Earnings

This table compares Honeywell and its rivals top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Honeywell $40.53 billion $1.66 billion 20.78
Honeywell Competitors $7.89 billion $494.31 million 13.48

Honeywell has higher revenue and earnings than its rivals. Honeywell is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Profitability

This table compares Honeywell and its rivals’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Honeywell 4.08% 27.27% 9.59%
Honeywell Competitors 2.20% 22.50% 5.66%

Institutional & Insider Ownership

75.3% of Honeywell shares are owned by institutional investors. Comparatively, 75.7% of shares of all “Motor vehicle parts & accessories” companies are owned by institutional investors. 1.3% of Honeywell shares are owned by insiders. Comparatively, 11.9% of shares of all “Motor vehicle parts & accessories” companies are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Risk & Volatility

Honeywell has a beta of 0.97, indicating that its stock price is 3% less volatile than the S&P 500. Comparatively, Honeywell’s rivals have a beta of 1.35, indicating that their average stock price is 35% more volatile than the S&P 500.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Honeywell and its rivals, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Honeywell 0 2 13 0 2.87
Honeywell Competitors 253 1255 1825 81 2.51

Honeywell currently has a consensus price target of $168.00, indicating a potential upside of 13.72%. As a group, “Motor vehicle parts & accessories” companies have a potential upside of 7.35%. Given Honeywell’s stronger consensus rating and higher probable upside, analysts plainly believe Honeywell is more favorable than its rivals.

Summary

Honeywell beats its rivals on 10 of the 15 factors compared.

Honeywell Company Profile

Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. It operates through four segments: Aerospace; Home and Building Technologies; Performance Materials and Technologies; and Safety and Productivity Solutions. The Aerospace segment supplies products, software, and services for aircraft and vehicles that it sells to original equipment manufacturers and other customers in various markets, including air transport, regional, business and general aviation aircraft, airlines, aircraft operators, defense and space contractors, and automotive and truck manufacturers. The Home and Building Technologies segment provides products, software, solutions, and technologies that help homes owners, commercial building owners, and occupants. The Performance Materials and Technologies segment develops and manufactures advanced materials, process technologies, and automation solutions. The Safety and Productivity Solutions segment provides products, software, and connected solutions to customers that enhance productivity, workplace safety, and asset performance. Honeywell International Inc. was founded in 1920 and is headquartered in Morris Plains, New Jersey.

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