Analyzing Honeywell Aerospace (HONA) and Its Peers

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

Insider & Institutional Ownership

50.1% of shares of all “Aerospace & Defense” companies are held by institutional investors. 12.1% of shares of all “Aerospace & Defense” companies are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Valuation & Earnings

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

	Gross Revenue	Net Income	Price/Earnings Ratio
Honeywell Aerospace	N/A	N/A	88.09
Honeywell Aerospace Competitors	$8.55 billion	$577.38 million	29.21

Honeywell Aerospace’s rivals have higher revenue and earnings than Honeywell Aerospace. 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.

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	-303.28%	-30.44%	-4.16%

Analyst Recommendations

This is a summary of current ratings for Honeywell Aerospace and its rivals, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Honeywell Aerospace	0	9	5	1	2.47
Honeywell Aerospace Competitors	2039	8013	12343	538	2.50

Honeywell Aerospace presently has a consensus price target of $224.17, indicating a potential upside of 36.08%. As a group, “Aerospace & Defense” companies have a potential upside of 36.62%. Given Honeywell Aerospace’s rivals stronger consensus rating and higher possible upside, analysts clearly believe Honeywell Aerospace has less favorable growth aspects than its rivals.

Summary

Honeywell Aerospace rivals beat Honeywell Aerospace on 6 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.