E.I. du Pont de Nemours and (DD) & Honeywell International (HON) Critical Analysis
E.I. du Pont de Nemours and (NYSE: DD) and Honeywell International (NYSE:HON) are both large-cap basic materials companies, but which is the better stock? We will contrast the two businesses based on the strength of their analyst recommendations, institutional ownership, profitability, valuation, risk, dividends and earnings.
This table compares E.I. du Pont de Nemours and and Honeywell International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|E.I. du Pont de Nemours and||8.86%||31.23%||8.10%|
Volatility and Risk
E.I. du Pont de Nemours and has a beta of 1.76, meaning that its stock price is 76% 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.
E.I. du Pont de Nemours and pays an annual dividend of $1.52 per share and has a dividend yield of 1.9%. Honeywell International pays an annual dividend of $2.66 per share and has a dividend yield of 2.0%. E.I. du Pont de Nemours and pays out 59.4% of its earnings in the form of a dividend. Honeywell International pays out 41.2% 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. E.I. du Pont de Nemours and has increased its dividend for 6 consecutive years. Honeywell International is clearly the better dividend stock, given its higher yield and lower payout ratio.
Institutional & Insider Ownership
71.2% of E.I. du Pont de Nemours and shares are owned by institutional investors. Comparatively, 76.5% of Honeywell International shares are owned by institutional investors. 0.3% of E.I. du Pont de Nemours and shares are owned by insiders. Comparatively, 1.6% of Honeywell International shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares E.I. du Pont de Nemours and and Honeywell International’s revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|E.I. du Pont de Nemours and||$25.30 billion||2.78||$5.32 billion||$2.56||31.71|
|Honeywell International||$39.36 billion||2.61||$7.85 billion||$6.45||20.92|
Honeywell International has higher revenue and earnings than E.I. du Pont de Nemours and. Honeywell International is trading at a lower price-to-earnings ratio than E.I. du Pont de Nemours and, indicating that it is currently the more affordable of the two stocks.
This is a summary of current recommendations for E.I. du Pont de Nemours and and Honeywell International, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|E.I. du Pont de Nemours and||0||4||6||0||2.60|
E.I. du Pont de Nemours and currently has a consensus target price of $80.19, suggesting a potential downside of 1.22%. Honeywell International has a consensus target price of $139.73, suggesting a potential upside of 3.54%. Given Honeywell International’s stronger consensus rating and higher possible upside, analysts plainly believe Honeywell International is more favorable than E.I. du Pont de Nemours and.
Honeywell International beats E.I. du Pont de Nemours and on 12 of the 17 factors compared between the two stocks.
About E.I. du Pont de Nemours and
E. I. du Pont de Nemours and Company is a science and technology-based company. It operates through six segments: Agriculture, Electronics & Communications (E&C), Industrial Biosciences, Nutrition & Health, Performance Materials and Protection Solutions. Its Agriculture segment includes products, such as corn hybrids and soybean varieties, herbicides, fungicides and insecticides. Its E&C segment includes products, such as printing and packaging materials, photopolymers and electronic materials. Its Industrial Biosciences segment includes products, such as enzymes, bio-based materials and process technologies. Its Nutrition & Health segment includes products, such as probiotics, cultures, emulsifiers, natural sweeteners and soy-based food ingredients. Its Performance Materials segment includes products, such as engineering polymers, packaging and industrial polymers, films and elastomers. Its Protection Solutions segment includes products, such as nonwovens, aramids and solid surfaces.
About Honeywell International
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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