Head to Head Analysis: Standard Motor Products (SMP) vs. Honeywell International (HON)
Honeywell International (NYSE: SMP) and Standard Motor Products (NYSE:SMP) are both multi-sector conglomerates companies, but which is the better investment? We will compare the two companies based on the strength of their dividends, risk, institutional ownership, earnings, analyst recommendations, profitability and valuation.
This table compares Honeywell International and Standard Motor Products’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Standard Motor Products||2.66%||12.38%||6.89%|
Honeywell International pays an annual dividend of $2.98 per share and has a dividend yield of 1.8%. Standard Motor Products pays an annual dividend of $0.84 per share and has a dividend yield of 1.6%. Honeywell International pays out 41.9% of its earnings in the form of a dividend. Standard Motor Products pays out 29.7% 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 raised its dividend for 7 consecutive years and Standard Motor Products has raised its dividend for 7 consecutive years.
This is a summary of recent recommendations and price targets for Honeywell International and Standard Motor Products, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Standard Motor Products||0||3||1||0||2.25|
Honeywell International presently has a consensus price target of $172.88, indicating a potential upside of 5.82%. Standard Motor Products has a consensus price target of $54.00, indicating a potential upside of 5.18%. Given Honeywell International’s stronger consensus rating and higher possible upside, equities analysts clearly believe Honeywell International is more favorable than Standard Motor Products.
Institutional and Insider Ownership
74.6% of Honeywell International shares are held by institutional investors. Comparatively, 83.3% of Standard Motor Products shares are held by institutional investors. 1.3% of Honeywell International shares are held by company insiders. Comparatively, 6.4% of Standard Motor Products shares are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Volatility & Risk
Honeywell International has a beta of 1.01, suggesting that its stock price is 1% more volatile than the S&P 500. Comparatively, Standard Motor Products has a beta of 1.66, suggesting that its stock price is 66% more volatile than the S&P 500.
Earnings and Valuation
This table compares Honeywell International and Standard Motor Products’ top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Honeywell International||$40.53 billion||2.99||$1.66 billion||$7.11||22.98|
|Standard Motor Products||$1.12 billion||1.03||$37.97 million||$2.83||18.14|
Honeywell International has higher revenue and earnings than Standard Motor Products. Standard Motor Products is trading at a lower price-to-earnings ratio than Honeywell International, indicating that it is currently the more affordable of the two stocks.
Honeywell International beats Standard Motor Products on 12 of the 16 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 Standard Motor Products
Standard Motor Products, Inc. manufactures and distributes replacement parts for motor vehicles in the automotive aftermarket industry. Its Engine Management segment manufactures and distributes engine management replacement parts, including electronic ignition control modules, fuel injectors, remanufactured diesel injectors and pumps, ignition wires, coils, switches, relays, EGR valves, distributor caps and rotors, various sensors primarily measuring temperature, vehicle systems, electronic throttle bodies, and other engine management components primarily under the Standard, Blue Streak, BWD, Select, Intermotor, OEM, LockSmart, TechSmart, Tech Expert, and GP Sorensen brands. The company's Temperature Control segment manufacture, remanufacture, and distribute replacement parts for automotive temperature control systems, engine cooling systems, power window accessories, and windshield washer systems, primarily under the Four Seasons, EVERCO, ACi, and Hayden brands. This segment provides new and remanufactured compressors, clutch assemblies, blower and radiator fan motors, filter dryers, evaporators, accumulators, hose assemblies, thermal expansion devices, heater valves, heater cores, AC service tools and chemicals, fan assemblies, fan clutches, oil coolers, window lift motors, window regulators and assemblies, and windshield washer pumps. The company sells its products primarily to large retail chains, warehouse distributors, original equipment manufacturers, and original equipment service part operations in the United States, Canada, Latin America, and Europe. Standard Motor Products, Inc. was founded in 1919 and is headquartered in Long Island City, New York.
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