Eastman Chemical vs Honeywell International Which Is More Promising?

Eastman Chemical and Honeywell International are two well-established companies in the chemical and manufacturing industries. Eastman Chemical is a global specialty materials company, while Honeywell International is a diversified technology and manufacturing company. Both stocks have shown steady growth over the years, with Eastman Chemical focusing on innovation and sustainability, and Honeywell International known for its cutting-edge technologies. Investors looking for stable and diverse investments may find both Eastman Chemical and Honeywell International stocks appealing options for their portfolios.

Eastman Chemical or Honeywell International?

When comparing Eastman Chemical and Honeywell International, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Eastman Chemical and Honeywell International.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Eastman Chemical has a dividend yield of 3.96%, while Honeywell International has a dividend yield of 1.44%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Eastman Chemical reports a 5-year dividend growth of 6.69% year and a payout ratio of 42.82%. On the other hand, Honeywell International reports a 5-year dividend growth of 6.42% year and a payout ratio of 50.54%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Eastman Chemical P/E ratio at 13.46 and Honeywell International's P/E ratio at 25.78. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Eastman Chemical P/B ratio is 2.11 while Honeywell International's P/B ratio is 8.42.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Eastman Chemical has seen a 5-year revenue growth of 0.08%, while Honeywell International's is -0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Eastman Chemical's ROE at 15.89% and Honeywell International's ROE at 34.10%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $100.92 for Eastman Chemical and $219.20 for Honeywell International. Over the past year, Eastman Chemical's prices ranged from $76.28 to $114.50, with a yearly change of 50.10%. Honeywell International's prices fluctuated between $185.71 and $225.32, with a yearly change of 21.33%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.