Critical Analysis: Honeywell International (HON) versus Carlisle Companies (NYSE:CSL)
Honeywell International (NYSE: HON) and Carlisle Companies (NYSE:CSL) are both mid-cap multi-sector conglomerates companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, valuation, profitabiliy, institutional ownership, risk and earnings.
Volatility & Risk
Honeywell International has a beta of 0.94, suggesting that its share price is 6% less volatile than the S&P 500. Comparatively, Carlisle Companies has a beta of 0.77, suggesting that its share price is 23% less volatile than the S&P 500.
This is a breakdown of current ratings for Honeywell International and Carlisle Companies, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Honeywell International presently has a consensus target price of $139.47, indicating a potential upside of 1.62%. Carlisle Companies has a consensus target price of $125.00, indicating a potential upside of 31.69%. Given Carlisle Companies’ higher probable upside, analysts clearly believe Carlisle Companies is more favorable than Honeywell International.
Valuation & Earnings
This table compares Honeywell International and Carlisle Companies’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Honeywell International||$39.36 billion||2.65||$7.85 billion||$6.45||21.28|
|Carlisle Companies||$3.81 billion||1.57||$723.50 million||$3.53||26.89|
Honeywell International has higher revenue and earnings than Carlisle Companies. Honeywell International is trading at a lower price-to-earnings ratio than Carlisle Companies, indicating that it is currently the more affordable of the two stocks.
Honeywell International pays an annual dividend of $2.66 per share and has a dividend yield of 1.9%. Carlisle Companies pays an annual dividend of $1.40 per share and has a dividend yield of 1.5%. Honeywell International pays out 41.2% of its earnings in the form of a dividend. Carlisle Companies pays out 39.7% 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 40 consecutive years and Carlisle Companies has raised its dividend for 6 consecutive years. Honeywell International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Insider and Institutional Ownership
76.4% of Honeywell International shares are owned by institutional investors. Comparatively, 95.2% of Carlisle Companies shares are owned by institutional investors. 1.6% of Honeywell International shares are owned by company insiders. Comparatively, 2.1% of Carlisle Companies shares are owned 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.
This table compares Honeywell International and Carlisle Companies’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Honeywell International beats Carlisle Companies on 13 of the 17 factors compared between the two stocks.
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.
Carlisle Companies Company Profile
Carlisle Companies Incorporated is a manufacturing company. The Company designs, manufactures and markets a range of products that serve a range of markets, including commercial roofing, energy, agriculture, mining, construction, aerospace and defense electronics, medical technology, transportation, general industrial, protective coatings, wood, auto refinishing, foodservice, and healthcare and sanitary maintenance. The Company operates through five segments: Carlisle Construction Materials (Construction Materials); Carlisle Interconnect Technologies (Interconnect Technologies); Carlisle Fluid Technologies (Fluid Technologies); Carlisle Brake & Friction (Brake & Friction), and Carlisle FoodService Products (FoodService Products). The Company markets its products as a component supplier to original equipment manufacturers and distributors, among others.
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