Financial Review: Honeywell Aerospace (HONA) versus The Competition

Honeywell Aerospace (NASDAQ:HONA) is one of 229 public companies in the “Aerospace & Defense” industry, but how does it contrast to its competitors? We will compare Honeywell Aerospace to related businesses based on the strength of its dividends, risk, analyst recommendations, valuation, earnings, profitability and institutional ownership.

Valuation and Earnings

This table compares Honeywell Aerospace and its competitors top-line revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Honeywell Aerospace	N/A	N/A	86.83
Honeywell Aerospace Competitors	$8.45 billion	$577.38 million	28.25

Honeywell Aerospace’s competitors have higher revenue and earnings than Honeywell Aerospace. Honeywell Aerospace is trading at a higher price-to-earnings ratio than its competitors, indicating that it is currently more expensive than other companies in its industry.

Insider and Institutional Ownership

49.8% of shares of all “Aerospace & Defense” companies are owned by institutional investors. 12.2% of shares of all “Aerospace & Defense” companies are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of recent recommendations for Honeywell Aerospace and its competitors, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Honeywell Aerospace	0	9	5	1	2.47
Honeywell Aerospace Competitors	2045	8022	12352	539	2.50

Honeywell Aerospace currently has a consensus price target of $224.17, indicating a potential upside of 38.06%. As a group, “Aerospace & Defense” companies have a potential upside of 40.38%. Given Honeywell Aerospace’s competitors stronger consensus rating and higher possible upside, analysts plainly believe Honeywell Aerospace has less favorable growth aspects than its competitors.

Profitability

This table compares Honeywell Aerospace and its competitors’ 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	-303.46%	-30.49%	-4.18%

Summary

Honeywell Aerospace competitors beat Honeywell Aerospace on 6 of the 11 factors compared.

Honeywell Aerospace Company Profile

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.