Analyzing Honeywell International (NASDAQ:HON) and Shanghai Industrial (OTCMKTS:SGHIY)

Honeywell International (NASDAQ:HON) and Shanghai Industrial (OTCMKTS:SGHIY) are both multi-sector conglomerates companies, but which is the better investment? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, profitability, valuation and earnings.

Dividends

Honeywell International pays an annual dividend of $4.76 per share and has a dividend yield of 2.2%. Shanghai Industrial pays an annual dividend of $1.04 per share and has a dividend yield of 5.8%. Honeywell International pays out 67.4% of its earnings in the form of a dividend. Honeywell International has raised its dividend for 14 consecutive years.

Risk and Volatility

Honeywell International has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Shanghai Industrial has a beta of 0.07, indicating that its stock price is 93% less volatile than the S&P 500.

Institutional & Insider Ownership

75.9% of Honeywell International shares are owned by institutional investors. 0.2% of Honeywell International shares are owned by insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Honeywell International	11.37%	42.29%	8.83%
Shanghai Industrial	N/A	N/A	N/A

Earnings & Valuation

This table compares Honeywell International and Shanghai Industrial”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Honeywell International	$37.44 billion	3.68	$4.73 billion	$7.06	30.79
Shanghai Industrial	$2.67 billion	0.73	$259.09 million	N/A	N/A

Honeywell International has higher revenue and earnings than Shanghai Industrial.

Analyst Recommendations

This is a breakdown of current ratings and target prices for Honeywell International and Shanghai Industrial, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Honeywell International	1	8	13	0	2.55
Shanghai Industrial	0	0	0	0	0.00

Honeywell International currently has a consensus target price of $248.25, indicating a potential upside of 14.20%. Given Honeywell International’s stronger consensus rating and higher possible upside, research analysts plainly believe Honeywell International is more favorable than Shanghai Industrial.

Summary

Honeywell International beats Shanghai Industrial on 13 of the 15 factors compared between the two stocks.

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.

About Shanghai Industrial

Shanghai Industrial Holdings Limited, an investment holding company, engages in the infrastructure and environmental protection, real estate, consumer products, and comprehensive healthcare operations businesses in Hong Kong, China, rest of Asia, and internationally. The company invests in toll road projects and water services/clean energy businesses. It engages in the property development and investment activities, as well as operates hotel. In addition, the company manufactures and sells cigarettes, packaging materials, and printed products; and pharmaceutical and healthcare products. Further, the company involved in the raw materials sourcing business; provision of distribution and supply chain solutions services; and operation and franchise of a network of retail pharmacies. The company was incorporated in 1996 and is based in Wan Chai, Hong Kong. Shanghai Industrial Holdings Limited operates as a subsidiary of Shanghai Industrial Investment (Holding) Co., Ltd.