DHR vs. HON, MMM, MKL, CSL, ITT, IEP, FSS, IAC, GFF, and WOR
Should you be buying Danaher stock or one of its competitors? The main competitors of Danaher include Honeywell International (HON), 3M (MMM), Markel Group (MKL), Carlisle Companies (CSL), ITT (ITT), Icahn Enterprises (IEP), Federal Signal (FSS), IAC (IAC), Griffon (GFF), and Worthington Enterprises (WOR). These companies are all part of the "multi-sector conglomerates" sector.
Honeywell International (NASDAQ:HON) and Danaher (NYSE:DHR) are both large-cap multi-sector conglomerates companies, but which is the superior business? We will compare the two businesses based on the strength of their profitability, valuation, risk, institutional ownership, media sentiment, earnings, community ranking, analyst recommendations and dividends.
Honeywell International pays an annual dividend of $4.32 per share and has a dividend yield of 2.2%. Danaher pays an annual dividend of $1.08 per share and has a dividend yield of 0.4%. Honeywell International pays out 50.1% of its earnings in the form of a dividend. Danaher pays out 18.3% 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 increased its dividend for 13 consecutive years and Danaher has increased its dividend for 1 consecutive years. Honeywell International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
In the previous week, Danaher had 7 more articles in the media than Honeywell International. MarketBeat recorded 30 mentions for Danaher and 23 mentions for Honeywell International. Danaher's average media sentiment score of 0.53 beat Honeywell International's score of 0.53 indicating that Honeywell International is being referred to more favorably in the media.
Honeywell International has higher revenue and earnings than Danaher. Honeywell International is trading at a lower price-to-earnings ratio than Danaher, indicating that it is currently the more affordable of the two stocks.
Honeywell International presently has a consensus target price of $215.71, indicating a potential upside of 8.19%. Danaher has a consensus target price of $267.31, indicating a potential upside of 2.26%. Given Danaher's higher possible upside, equities research analysts plainly believe Honeywell International is more favorable than Danaher.
Honeywell International received 158 more outperform votes than Danaher when rated by MarketBeat users. Likewise, 75.61% of users gave Honeywell International an outperform vote while only 74.73% of users gave Danaher an outperform vote.
75.9% of Honeywell International shares are owned by institutional investors. Comparatively, 79.1% of Danaher shares are owned by institutional investors. 0.4% of Honeywell International shares are owned by insiders. Comparatively, 11.1% of Danaher shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Danaher has a net margin of 16.78% compared to Danaher's net margin of 15.52%. Danaher's return on equity of 35.88% beat Honeywell International's return on equity.
Honeywell International has a beta of 1.02, suggesting that its share price is 2% more volatile than the S&P 500. Comparatively, Danaher has a beta of 0.83, suggesting that its share price is 17% less volatile than the S&P 500.
Summary
Honeywell International beats Danaher on 12 of the 21 factors compared between the two stocks.
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This chart shows the number of new MarketBeat users adding DHR and its top 5 competitors to their watchlist. Each company is represented with a line over a 90 day period.
This chart shows the average media sentiment of NYSE and its competitors over the past 90 days as caculated by MarketBeat. The averaged score is equivalent to the following: Very Negative Sentiment <= -1.5, Negative Sentiment > -1.5 and <= -0.5, Neutral Sentiment > -0.5 and < 0.5, Positive Sentiment >= 0.5 and < 1.5, and Very Positive Sentiment >= 1.5.
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