General Electric (GE) versus Honeywell International (HON) Head-To-Head Analysis
General Electric (NYSE: GE) and Honeywell International (NYSE:HON) are both large-cap multi-sector conglomerates companies, but which is the superior business? We will contrast the two companies based on the strength of their dividends, profitability, analyst recommendations, risk, valuation, institutional ownership and earnings.
Volatility & Risk
General Electric has a beta of 1.21, meaning that its stock price is 21% more volatile than the S&P 500. Comparatively, Honeywell International has a beta of 0.94, meaning that its stock price is 6% less volatile than the S&P 500.
This table compares General Electric and Honeywell International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
This is a breakdown of recent recommendations for General Electric and Honeywell International, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
General Electric currently has a consensus price target of $29.80, suggesting a potential upside of 21.38%. Honeywell International has a consensus price target of $139.73, suggesting a potential upside of 3.54%. Given General Electric’s higher possible upside, equities research analysts clearly believe General Electric is more favorable than Honeywell International.
Valuation and Earnings
This table compares General Electric and Honeywell International’s gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|General Electric||$118.85 billion||0.01||$17.92 billion||$0.81||30.31|
|Honeywell International||$39.36 billion||2.61||$7.85 billion||$6.45||20.92|
General Electric has higher revenue and earnings than Honeywell International. Honeywell International is trading at a lower price-to-earnings ratio than General Electric, indicating that it is currently the more affordable of the two stocks.
Institutional & Insider Ownership
54.3% of General Electric shares are held by institutional investors. Comparatively, 76.5% of Honeywell International shares are held by institutional investors. 0.4% of General Electric shares are held by company insiders. Comparatively, 1.6% of Honeywell International shares are held by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
General Electric pays an annual dividend of $0.96 per share and has a dividend yield of 3.9%. Honeywell International pays an annual dividend of $2.66 per share and has a dividend yield of 2.0%. General Electric pays out 118.5% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Honeywell International pays out 41.2% of its earnings in the form of a dividend. Honeywell International has raised its dividend for 6 consecutive years.
Honeywell International beats General Electric on 12 of the 17 factors compared between the two stocks.
General Electric Company Profile
General Electric Company is a global digital industrial company. The Company’s products and services range from aircraft engines, power generation, and oil and gas production equipment to medical imaging, financing and industrial products. Its segments include Power, which includes products and services related to energy production and water reuse; Renewable Energy, which offers renewable power sources; Oil & Gas, including liquefied natural gas and pipelines; Aviation, which includes commercial and military aircraft engines, and integrated digital components, among others; Healthcare, which provides healthcare technologies in medical imaging, digital solutions, patient monitoring and diagnostics, and drug discovery, among others; Transportation, which is a supplier to the railroad, mining, marine, stationary power and drilling industries; Energy Connections & Lighting, which includes Energy Connections and Lighting businesses, and Capital, which is a financial services division.
Honeywell International Company Profile
Honeywell International Inc. is a technology and manufacturing company. The Company operates through four segments: Aerospace, Home and Building Technologies, Performance Materials and Technologies, and Safety and Productivity Solutions. The Company’s Aerospace segment supplies products, software and services for aircraft and vehicles that it sells to original equipment manufacturers (OEMs) and other customers. The Home and Building Technologies segment provides products, software, solutions and technologies that help owners of homes stay connected and in control of their comfort, security and energy use. The Performance Materials and Technologies segment is engaged in developing and manufacturing materials, process technologies and automation solutions. The Safety and Productivity Solutions segment is engaged in providing products, software and connected solutions to customers that manage productivity, workplace safety and asset performance.
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