Honeywell International vs Rockwell Automation Which Outperforms?

Honeywell International and Rockwell Automation are two leading companies in the industrial automation and technology sector. Honeywell is a diversified technology and manufacturing company, offering solutions in aerospace, buildings, and performance materials. Meanwhile, Rockwell Automation specializes in providing industrial automation and information solutions. Both companies have seen strong growth in recent years, and their stocks have performed well in the market. Investors looking to capitalize on the growth potential of the industrial automation sector may find these stocks appealing for their investment portfolios.

Honeywell International or Rockwell Automation?

When comparing Honeywell International and Rockwell Automation, 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 Honeywell International and Rockwell Automation.

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. Honeywell International has a dividend yield of 1.39%, while Rockwell Automation has a dividend yield of 1.74%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Honeywell International reports a 5-year dividend growth of 6.42% year and a payout ratio of 50.54%. On the other hand, Rockwell Automation reports a 5-year dividend growth of 5.62% year and a payout ratio of 59.30%.

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 Honeywell International P/E ratio at 26.67 and Rockwell Automation's P/E ratio at 34.21. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Honeywell International P/B ratio is 8.71 while Rockwell Automation's P/B ratio is 9.31.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Honeywell International has seen a 5-year revenue growth of -0.02%, while Rockwell Automation's is 0.43%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Honeywell International's ROE at 34.10% and Rockwell Automation's ROE at 27.26%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $232.18 for Honeywell International and $279.81 for Rockwell Automation. Over the past year, Honeywell International's prices ranged from $188.78 to $242.77, with a yearly change of 28.60%. Rockwell Automation's prices fluctuated between $242.81 and $312.76, with a yearly change of 28.81%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.