Emerson Electric vs Honeywell International Which Is More Profitable?

Emerson Electric Co. and Honeywell International Inc. are two leading companies in the industrial manufacturing sector with a focus on technology and innovation. Emerson Electric specializes in producing a wide range of electrical products and automation solutions, while Honeywell International is known for its diverse portfolio of aerospace, building technologies, and performance materials. Both stocks have shown consistent growth and profitability over the years, making them attractive investment options for those interested in the industrial manufacturing industry.

Emerson Electric or Honeywell International?

When comparing Emerson Electric 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 Emerson Electric 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. Emerson Electric has a dividend yield of 1.63%, 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. Emerson Electric reports a 5-year dividend growth of 1.40% year and a payout ratio of 61.03%. 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 Emerson Electric P/E ratio at 37.68 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. Emerson Electric P/B ratio is 3.43 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, Emerson Electric has seen a 5-year revenue growth of -0.04%, while Honeywell International's is -0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Emerson Electric's ROE at 9.37% 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 $126.12 for Emerson Electric and $219.20 for Honeywell International. Over the past year, Emerson Electric's prices ranged from $85.91 to $130.00, with a yearly change of 51.32%. 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.