Head to Head Survey: Honeywell International (HON) versus Superior Industries International (SUP)

Honeywell International (NYSE:HON) and Superior Industries International (NYSE:SUP) are both multi-sector conglomerates companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, institutional ownership, valuation, profitability, earnings, analyst recommendations and dividends.

Dividends

Honeywell International pays an annual dividend of $2.98 per share and has a dividend yield of 1.9%. Superior Industries International pays an annual dividend of $0.36 per share and has a dividend yield of 2.9%. Honeywell International pays out 41.9% of its earnings in the form of a dividend. Superior Industries International pays out 32.7% 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 7 consecutive years. Superior Industries International is clearly the better dividend stock, given its higher yield and lower payout ratio.

Insider & Institutional Ownership

74.8% of Honeywell International shares are held by institutional investors. Comparatively, 84.5% of Superior Industries International shares are held by institutional investors. 1.3% of Honeywell International shares are held by company insiders. Comparatively, 1.5% of Superior Industries International shares are held by company 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.

Earnings and Valuation

This table compares Honeywell International and Superior Industries International’s gross revenue, earnings per share and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Honeywell International $40.53 billion 2.81 $1.66 billion $7.11 21.59
Superior Industries International $1.11 billion 0.28 -$6.20 million $1.10 11.32

Honeywell International has higher revenue and earnings than Superior Industries International. Superior Industries International is trading at a lower price-to-earnings ratio than Honeywell International, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Honeywell International and Superior Industries International’s net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Honeywell International 3.88% 31.46% 9.85%
Superior Industries International 1.12% 10.77% 3.15%

Risk and Volatility

Honeywell International has a beta of 1, meaning that its stock price has a similar volatility profile to the S&P 500.Comparatively, Superior Industries International has a beta of 1.33, meaning that its stock price is 33% more volatile than the S&P 500.

Analyst Recommendations

This is a summary of current ratings and price targets for Honeywell International and Superior Industries International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Honeywell International 0 3 17 0 2.85
Superior Industries International 0 1 2 0 2.67

Honeywell International presently has a consensus target price of $174.83, suggesting a potential upside of 13.92%. Superior Industries International has a consensus target price of $23.67, suggesting a potential upside of 90.09%. Given Superior Industries International’s higher probable upside, analysts clearly believe Superior Industries International is more favorable than Honeywell International.

Summary

Honeywell International beats Superior Industries International on 11 of the 17 factors compared between the two stocks.

About Honeywell International

Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. It operates through four segments: Aerospace; Home and Building Technologies; Performance Materials and Technologies; and Safety and Productivity Solutions. The Aerospace segment supplies products, software, and services for aircraft and vehicles that it sells to original equipment manufacturers and other customers in various markets, including air transport, regional, business and general aviation aircraft, airlines, aircraft operators, defense and space contractors, and automotive and truck manufacturers. The Home and Building Technologies segment provides products, software, solutions, and technologies that help homes owners, commercial building owners, and occupants. The Performance Materials and Technologies segment develops and manufactures advanced materials, process technologies, and automation solutions. The Safety and Productivity Solutions segment provides products, software, and connected solutions to customers that enhance productivity, workplace safety, and asset performance. Honeywell International Inc. was founded in 1920 and is headquartered in Morris Plains, New Jersey.

About Superior Industries International

Superior Industries International, Inc. designs, manufactures, and sells aluminum wheels to the original equipment manufacturers in North America. It supplies cast aluminum wheels to the automobile and light truck manufacturers. The company was founded in 1957 and is headquartered in Southfield, Michigan.

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