Head-To-Head Review: Honeywell Aerospace (NASDAQ:HONA) and Ondas (NASDAQ:ONDS)

Honeywell Aerospace (NASDAQ:HONA) and Ondas (NASDAQ:ONDS) are both industrials companies, but which is the superior business? We will contrast the two companies based on the strength of their profitability, earnings, analyst recommendations, institutional ownership, dividends, valuation and risk.

Profitability

This table compares Honeywell Aerospace and Ondas’ 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
Ondas	93.55%	-14.20%	-7.15%

Analyst Recommendations

This is a summary of current ratings and target prices for Honeywell Aerospace and Ondas, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Honeywell Aerospace	2	9	6	0	2.24
Ondas	1	1	8	0	2.70

Honeywell Aerospace currently has a consensus target price of $219.29, suggesting a potential upside of 31.06%. Ondas has a consensus target price of $17.18, suggesting a potential upside of 122.47%. Given Ondas’ stronger consensus rating and higher probable upside, analysts plainly believe Ondas is more favorable than Honeywell Aerospace.

Valuation and Earnings

This table compares Honeywell Aerospace and Ondas”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Honeywell Aerospace	$17.91 billion	2.96	$592.70 million	$1.87	89.48
Ondas	$50.73 million	86.99	-$132.02 million	($0.07)	-110.29

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

Institutional & Insider Ownership

37.7% of Ondas shares are owned by institutional investors. 1.7% of Ondas shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Summary

Ondas beats Honeywell Aerospace on 7 of the 13 factors compared between the two stocks.

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.

About Ondas

Ondas Holdings Inc., through its subsidiaries, provides private wireless, drone, and automated data solutions. It operates in two segments, Ondas Networks and Ondas Autonomous Systems. The company designs, develops, manufactures, sells, and supports FullMAX, a software defined radio (SDR) platform for wide-area broadband networks. Its FullMAX SDR platform enables secure and reliable industrial-grade connectivity for truly mission-critical applications. The company also offers Optimus, an AI-powered drone with imaging payloads; the Airbase, a ruggedized weatherproof base station for housing, data processing, and cloud transfer; Insightful, a secure web portal and API, which enables remote interaction with the system, data, and resulting analytics anywhere in the world; and the Raider, a counter-drone system for security and the protection of critical infrastructure, assets, and people from the threat of hostile drones. It serves users in rail, energy, mining, agriculture, public safety, critical infrastructure, and government markets in the United States and internationally. The company is headquartered in Waltham, Massachusetts.