Head to Head Review: Honeywell International (NASDAQ:HON) and Barloworld (OTCMKTS:BRRAY)

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

Insider and Institutional Ownership

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

Profitability

This table compares Honeywell International and Barloworld’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%
Barloworld	N/A	N/A	N/A

Valuation & Earnings

This table compares Honeywell International and Barloworld”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Honeywell International	$37.44 billion	3.94	$4.73 billion	$7.06	33.00
Barloworld	$2.09 billion	1.41	$79.96 million	N/A	N/A

Honeywell International has higher revenue and earnings than Barloworld.

Dividends

Honeywell International pays an annual dividend of $4.76 per share and has a dividend yield of 2.0%. Barloworld pays an annual dividend of $0.08 per share and has a dividend yield of 0.5%. Honeywell International pays out 67.4% of its earnings in the form of a dividend. Honeywell International has increased its dividend for 14 consecutive years. Honeywell International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Honeywell International has a beta of 0.82, indicating that its stock price is 18% less volatile than the S&P 500. Comparatively, Barloworld has a beta of -0.29, indicating that its stock price is 129% less volatile than the S&P 500.

Analyst Ratings

This is a summary of recent ratings for Honeywell International and Barloworld, as reported by MarketBeat.com.

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

Honeywell International currently has a consensus price target of $248.17, indicating a potential upside of 6.51%. Given Honeywell International’s stronger consensus rating and higher probable upside, research analysts clearly believe Honeywell International is more favorable than Barloworld.

Summary

Honeywell International beats Barloworld on 14 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 Barloworld

Barloworld Limited operates as an industrial processing, distribution, and services company in Southern Africa, Australia, Russia, and Mongolia. The company operates through Equipment Southern Africa, Automotive, Ingrain, Equipment Eurasia, and Other segments. The company offers industrial equipment and services comprising of earthmoving equipment, industrial services, and power systems that enable various mining, construction, and power solutions. It also manufactures various products, which includes food, beverages, paper, pharmaceuticals, building material and adhesives, and others. In addition, the company offers starch, glucose, and other products; and salvage management and disposal services. It serves mining, construction, energy, and transportation sectors. The company was founded in 1902 and is based in Sandton, South Africa.