Generac vs Honeywell International Which Offers More Value?

Generac and Honeywell International are two companies that operate in different sectors but both offer opportunities for investors looking to diversify their portfolios. Generac is a leading manufacturer of backup power generators, benefiting from the growing demand for reliable energy solutions. On the other hand, Honeywell International is a diversified technology and manufacturing company with a strong presence in aerospace, automotive, and building technologies. Both companies have shown resilience during market fluctuations, making them attractive investment options for those seeking long-term growth potential.

Generac or Honeywell International?

When comparing Generac 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 Generac 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. Generac has a dividend yield of -%, 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. Generac reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%. 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 Generac P/E ratio at 39.49 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. Generac P/B ratio is 4.84 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, Generac has seen a 5-year revenue growth of 1.00%, while Honeywell International's is -0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Generac's ROE at 12.44% 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 $188.79 for Generac and $219.20 for Honeywell International. Over the past year, Generac's prices ranged from $102.23 to $195.94, with a yearly change of 91.67%. 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.