Head to Head Review: Honeywell International (HON) vs. Carlisle Companies (CSL)

Honeywell International (NYSE: HON) and Carlisle Companies (NYSE:CSL) are both mid-cap industrials companies, but which is the better investment? We will compare the two businesses based on the strength of their risk, analyst recommendations, dividends, institutional ownership, earnings, valuation and profitability.

Volatility & Risk

Honeywell International has a beta of 0.94, indicating that its share price is 6% less volatile than the S&P 500. Comparatively, Carlisle Companies has a beta of 0.77, indicating that its share price is 23% less volatile than the S&P 500.

Earnings & Valuation

This table compares Honeywell International and Carlisle Companies’ top-line revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio EBITDA Earnings Per Share Price/Earnings Ratio
Honeywell International $39.36 billion 2.67 $7.85 billion $6.45 21.44
Carlisle Companies $3.81 billion 1.60 $723.50 million $3.53 27.35

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.

Institutional & Insider Ownership

76.5% of Honeywell International shares are held by institutional investors. Comparatively, 93.7% of Carlisle Companies shares are held by institutional investors. 1.6% of Honeywell International shares are held by company insiders. Comparatively, 2.1% of Carlisle Companies shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Analyst Recommendations

This is a breakdown of current recommendations for Honeywell International and Carlisle Companies, as reported by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Honeywell International 0 1 15 0 2.94
Carlisle Companies 0 3 3 0 2.50

Honeywell International presently has a consensus price target of $139.47, suggesting a potential upside of 0.87%. Carlisle Companies has a consensus price target of $125.00, suggesting a potential upside of 29.49%. Given Carlisle Companies’ higher probable upside, analysts plainly believe Carlisle Companies is more favorable than Honeywell International.

Dividends

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 increased its dividend for 40 consecutive years and Carlisle Companies has increased 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.

Profitability

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 13.89% 27.40% 10.17%
Carlisle Companies 6.04% 15.18% 9.26%

Summary

Honeywell International beats Carlisle Companies on 13 of the 17 factors compared between the two stocks.

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.

About Carlisle Companies

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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