Honeywell International (NYSE:HON) and AAR (NYSE:AIR) are both multi-sector conglomerates companies, but which is the superior stock? We will compare the two companies based on the strength of their dividends, valuation, analyst recommendations, risk, institutional ownership, earnings and profitability.
Earnings and Valuation
This table compares Honeywell International and AAR's top-line revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio |
---|
Honeywell International | $36.71 billion | 4.00 | $6.14 billion | $8.16 | 25.86 |
AAR | $2.07 billion | 0.73 | $4.40 million | $2.15 | 19.89 |
Honeywell International has higher revenue and earnings than AAR. AAR is trading at a lower price-to-earnings ratio than Honeywell International, indicating that it is currently the more affordable of the two stocks.
Analyst Ratings
This is a breakdown of current ratings and recommmendations for Honeywell International and AAR, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score |
---|
Honeywell International | 0 | 9 | 10 | 0 | 2.53 |
AAR | 0 | 1 | 4 | 0 | 2.80 |
Honeywell International presently has a consensus price target of $196.1176, suggesting a potential downside of 7.07%. AAR has a consensus price target of $33.00, suggesting a potential downside of 22.84%. Given Honeywell International's higher probable upside, equities research analysts clearly believe Honeywell International is more favorable than AAR.
Volatility and Risk
Honeywell International has a beta of 1.13, indicating that its share price is 13% more volatile than the S&P 500. Comparatively, AAR has a beta of 1.84, indicating that its share price is 84% more volatile than the S&P 500.
Profitability
This table compares Honeywell International and AAR's net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets |
---|
Honeywell International | 14.99% | 27.69% | 8.34% |
AAR | -1.16% | 5.46% | 2.72% |
Insider and Institutional Ownership
76.0% of Honeywell International shares are owned by institutional investors. Comparatively, 85.7% of AAR shares are owned by institutional investors. 0.6% of Honeywell International shares are owned by insiders. Comparatively, 8.3% of AAR shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock will outperform the market over the long term.
Summary
Honeywell International beats AAR on 10 of the 14 factors compared between the two stocks.