Critical Review: Honeywell Aerospace (HONA) & Its Rivals

Honeywell Aerospace (NASDAQ:HONA) is one of 230 publicly-traded companies in the “Aerospace & Defense” industry, but how does it compare to its rivals? We will compare Honeywell Aerospace to similar companies based on the strength of its valuation, analyst recommendations, profitability, risk, institutional ownership, dividends and earnings.

Analyst Ratings

This is a breakdown of current ratings and recommmendations for Honeywell Aerospace and its rivals, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Honeywell Aerospace	0	9	5	1	2.47
Honeywell Aerospace Competitors	2072	8037	12365	539	2.49

Honeywell Aerospace presently has a consensus target price of $224.17, suggesting a potential upside of 46.95%. As a group, “Aerospace & Defense” companies have a potential upside of 31.22%. Given Honeywell Aerospace’s higher probable upside, research analysts clearly believe Honeywell Aerospace is more favorable than its rivals.

Earnings and Valuation

This table compares Honeywell Aerospace and its rivals top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Honeywell Aerospace	$17.91 billion	N/A	81.58
Honeywell Aerospace Competitors	$8.48 billion	$576.73 million	26.66

Honeywell Aerospace has higher revenue, but lower earnings than its rivals. Honeywell Aerospace is trading at a higher price-to-earnings ratio than its rivals, indicating that it is currently more expensive than other companies in its industry.

Insider & Institutional Ownership

49.5% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 12.1% of shares of all “Aerospace & Defense” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company will outperform the market over the long term.

Profitability

This table compares Honeywell Aerospace and its rivals’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Honeywell Aerospace	N/A	N/A	N/A
Honeywell Aerospace Competitors	-305.55%	-31.46%	-4.73%

Summary

Honeywell Aerospace beats its rivals on 7 of the 11 factors compared.

About Honeywell Aerospace

Honeywell Aerospace Inc. manufactures and supplies aircraft components, avionics, engines, and systems for airframe manufacturing, commercial airline, military and defense, business aviation, and space markets, as well as other markets in the aerospace industry. The company offers actuation products, air and thermal management products, auxiliary power units, cabin management and entertainment products, cockpit systems and displays, electric power products, engines, health and usage monitoring products, lighting products, microelectronics, navigation products and radios, recorders and transmitters, satellite communications, sensors, space products, terrain and traffic awareness, vehicle turbochargers, weather radars, and wheels and braking systems. It also provides aerospace trading, asset availability, cabin connectivity, maintenance and service plans, certifications, training, and other flight services; and GoDirect Trade, an e-commerce platform that offers access to new and used air transport and business aircraft parts. The company’s platform includes business jets, airlines/cargo planes, helicopters, defense, space, general aviation, and automotive platforms. It provides products and services to military fixed and rotary wing operators in South America, Latin America, Africa, and the Middle East. The company was founded in 1914 and is based in Phoenix, Arizona. Honeywell Aerospace Inc. is as a prior subsidiary of Honeywell International Inc.