Head to Head Comparison: Honeywell International (NASDAQ:HON) vs. Benev Capital (OTCMKTS:BEVFF)

Benev Capital (OTCMKTS:BEVFF) and Honeywell International (NASDAQ:HON) are both industrials companies, but which is the superior business? We will compare the two businesses based on the strength of their earnings, analyst recommendations, risk, institutional ownership, valuation, dividends and profitability.

Analyst Ratings

This is a breakdown of recent recommendations for Benev Capital and Honeywell International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Benev Capital	0	0	0	0	0.00
Honeywell International	1	11	13	0	2.48

Honeywell International has a consensus target price of $253.83, indicating a potential upside of 18.19%. Given Honeywell International’s stronger consensus rating and higher probable upside, analysts clearly believe Honeywell International is more favorable than Benev Capital.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Benev Capital	39.72%	13.10%	6.03%
Honeywell International	23.90%	34.00%	7.37%

Dividends

Benev Capital pays an annual dividend of $0.20 per share and has a dividend yield of 6.8%. Honeywell International pays an annual dividend of $9.52 per share and has a dividend yield of 4.4%. Benev Capital pays out 166.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Honeywell International pays out 36.8% of its earnings in the form of a dividend. Honeywell International has raised its dividend for 14 consecutive years.

Earnings & Valuation

This table compares Benev Capital and Honeywell International”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Benev Capital	$50.66 million	10.94	$26.24 million	$0.12	24.46
Honeywell International	$38.06 billion	1.79	$4.73 billion	$25.87	8.30

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

Institutional & Insider Ownership

75.9% of Honeywell International shares are owned by institutional investors. 12.0% of Benev Capital shares are owned by company insiders. Comparatively, 0.2% of Honeywell International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.

Risk & Volatility

Benev Capital has a beta of 0.75, suggesting that its stock price is 25% less volatile than the S&P 500. Comparatively, Honeywell International has a beta of 0.89, suggesting that its stock price is 11% less volatile than the S&P 500.

Summary

Honeywell International beats Benev Capital on 12 of the 17 factors compared between the two stocks.

About Benev Capital

Diversified Royalty Corp., a multi-royalty corporation, engages in the acquisition of royalties from multi-location businesses and franchisors in North America. It owns the Sutton, Mr. Lube + Tires, AIR MILES, Mr. Mikes, Nurse Next Door, Oxford Learning Centres, Stratus Building Solutions, and BarBurrito trademarks. The company was formerly known as BENEV Capital Inc. and changed its name to Diversified Royalty Corp. in September 2014. Diversified Royalty Corp. was founded in 1960 and is headquartered in Vancouver, Canada.

About Honeywell International

Honeywell International Inc. engages in the aerospace technologies, building automation, energy and sustainable solutions, and industrial automation businesses in the United States, Europe, and internationally. The company’s Aerospace segment offers auxiliary power units, propulsion engines, integrated avionics, environmental control and electric power systems, engine controls, flight safety, communications, navigation hardware, data and software applications, radar and surveillance systems, aircraft lighting, advanced systems and instruments, satellite and space components, and aircraft wheels and brakes; spare parts; repair, overhaul, and maintenance services; and thermal systems, as well as wireless connectivity services. Its Honeywell Building Technologies segment provides software applications for building control and optimization; sensors, switches, control systems, and instruments for energy management; access control; video surveillance; fire products; and installation, maintenance, and upgrades of systems. The company’s Performance Materials and Technologies segment offers automation control, instrumentation, and software and related services; catalysts and adsorbents, equipment, and consulting; and materials to manufacture end products, such as bullet-resistant armor, nylon, computer chips, and pharmaceutical packaging, as well as provides materials based on hydrofluoro-olefin technology. Its Safety and Productivity Solutions segment provides personal protective equipment, apparel, gear, and footwear; gas detection technology; custom-engineered sensors, switches, and controls for sensing and productivity solution; cloud-based notification and emergency messaging; mobile devices and software; custom-engineered sensors, switches, and controls; and data and asset management productivity solutions. Honeywell International Inc. was founded in 1885 and is headquartered in Charlotte, North Carolina.