Honeywell International (NASDAQ:HON – Get Free Report) and Marubeni (OTCMKTS:MARUY – Get Free Report) are both large-cap multi-sector conglomerates companies, but which is the better investment? We will compare the two companies based on the strength of their risk, earnings, institutional ownership, dividends, analyst recommendations, valuation and profitability.
Analyst Recommendations
This is a summary of recent ratings and recommmendations for Honeywell International and Marubeni, as reported by MarketBeat.
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Honeywell International | 0 | 8 | 8 | 1 | 2.59 |
Marubeni | 0 | 0 | 0 | 0 | 0.00 |
Honeywell International currently has a consensus price target of $249.21, indicating a potential upside of 12.36%. Given Honeywell International’s stronger consensus rating and higher probable upside, equities research analysts plainly believe Honeywell International is more favorable than Marubeni.
Insider and Institutional Ownership
Dividends
Honeywell International pays an annual dividend of $4.52 per share and has a dividend yield of 2.0%. Marubeni pays an annual dividend of $5.46 per share and has a dividend yield of 2.8%. Honeywell International pays out 52.0% of its earnings in the form of a dividend. Marubeni pays out 27.5% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Honeywell International has raised its dividend for 14 consecutive years. Marubeni is clearly the better dividend stock, given its higher yield and lower payout ratio.
Profitability
This table compares Honeywell International and Marubeni’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Honeywell International | 14.51% | 36.19% | 8.97% |
Marubeni | 6.45% | 13.37% | 5.48% |
Valuation and Earnings
This table compares Honeywell International and Marubeni”s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Honeywell International | $39.22 billion | 3.64 | $5.71 billion | $8.70 | 25.49 |
Marubeni | $51.16 billion | 0.64 | $3.32 billion | $19.82 | 9.91 |
Honeywell International has higher earnings, but lower revenue than Marubeni. Marubeni is trading at a lower price-to-earnings ratio than Honeywell International, indicating that it is currently the more affordable of the two stocks.
Risk and Volatility
Honeywell International has a beta of 1.08, suggesting that its stock price is 8% more volatile than the S&P 500. Comparatively, Marubeni has a beta of 0.8, suggesting that its stock price is 20% less volatile than the S&P 500.
Summary
Honeywell International beats Marubeni on 14 of the 18 factors compared between the two stocks.
About Honeywell International
Honeywell International Inc. engages in the aerospace technologies, building automation, energy and sustainable solutions, and industrial automation businesses in the United States, Europe, and internationally. The company’s Aerospace segment offers auxiliary power units, propulsion engines, integrated avionics, environmental control and electric power systems, engine controls, flight safety, communications, navigation hardware, data and software applications, radar and surveillance systems, aircraft lighting, advanced systems and instruments, satellite and space components, and aircraft wheels and brakes; spare parts; repair, overhaul, and maintenance services; and thermal systems, as well as wireless connectivity services. Its Honeywell Building Technologies segment provides software applications for building control and optimization; sensors, switches, control systems, and instruments for energy management; access control; video surveillance; fire products; and installation, maintenance, and upgrades of systems. The company’s Performance Materials and Technologies segment offers automation control, instrumentation, and software and related services; catalysts and adsorbents, equipment, and consulting; and materials to manufacture end products, such as bullet-resistant armor, nylon, computer chips, and pharmaceutical packaging, as well as provides materials based on hydrofluoro-olefin technology. Its Safety and Productivity Solutions segment provides personal protective equipment, apparel, gear, and footwear; gas detection technology; custom-engineered sensors, switches, and controls for sensing and productivity solution; cloud-based notification and emergency messaging; mobile devices and software; custom-engineered sensors, switches, and controls; and data and asset management productivity solutions. Honeywell International Inc. was founded in 1885 and is headquartered in Charlotte, North Carolina.
About Marubeni
Marubeni Corporation engages in various business activities. It manufactures, wholesales, and retails apparel, footwear, home furnishing and sport goods, industrial and textile materials, tire and rubber materials, and household and nursing care products; develops uranium, nuclear fuel cycle, iron ore, coking coal, copper mines, and related equipment and services; smelts and refines aluminum and magnesium; leases temporary steel construction materials; explores for, develops, and produces oil and gas; manages infrastructure funds; and develops and manages real estate. The company also offers insurance, technical, ICT, and logistic services; agri-inputs; fertilizer and crop protection product contracting services; crop protection product formulations; wood chips, biomass fuels, pulp and waste papers, paper, paperboards, sanitary, and building and construction materials; engineering, procurement, and construction services; and operation and maintenance services. It trades in fertilizers, dairy, agricultural, and marine products; sugar, processed food, beverages raw materials, and commercial use food materials; grains, oilseeds, feed ingredients, compound feeds, fresh and processed meat, petrochemicals, plastics, salts, chlor-alkalis, life science products, electronic materials, fertilizer materials, and inorganic mineral resources and chemicals; steelmaking raw materials, ferroalloys, nonferrous metals, and steel products; cement and ingots related materials; and petroleum and LPG. The company engages in infrastructure; water; automotive finance; power generation; power service and retail; natural gas; hydrogen; and fuel ammonia businesses. It owns, purchases, operates, leases, sells, and charters aerospace and ship products; leases refrigerated trailers, commercial vehicles, and freight cars; and sells, trades in, leases, finances, and services construction and industrial machinery, and mobility products. The company was founded in 1858 and is based in Tokyo, Japan.
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