Analyzing Honeywell International (NASDAQ:HON) and Ayala (OTCMKTS:AYYLF)

Honeywell International (NASDAQ:HON) and Ayala (OTCMKTS:AYYLF) are both industrials companies, but which is the superior stock? We will compare the two businesses based on the strength of their institutional ownership, profitability, dividends, earnings, analyst recommendations, valuation and risk.

Profitability

This table compares Honeywell International and Ayala’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Honeywell International	23.90%	34.00%	7.37%
Ayala	N/A	N/A	N/A

Insider & Institutional Ownership

75.9% of Honeywell International shares are held by institutional investors. Comparatively, 11.9% of Ayala shares are held by institutional investors. 0.2% of Honeywell International shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Dividends

Honeywell International pays an annual dividend of $9.52 per share and has a dividend yield of 4.1%. Ayala pays an annual dividend of C$3.98 per share and has a dividend yield of 45.5%. Honeywell International pays out 36.8% of its earnings in the form of a dividend. Ayala pays out 14.6% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Honeywell International has increased its dividend for 14 consecutive years. Ayala is clearly the better dividend stock, given its higher yield and lower payout ratio.

Analyst Recommendations

This is a summary of recent recommendations for Honeywell International and Ayala, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Honeywell International	1	11	13	0	2.48
Ayala	0	0	0	0	0.00

Honeywell International presently has a consensus target price of $254.25, indicating a potential upside of 10.49%. Given Honeywell International’s stronger consensus rating and higher possible upside, research analysts clearly believe Honeywell International is more favorable than Ayala.

Valuation & Earnings

This table compares Honeywell International and Ayala”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Honeywell International	$37.44 billion	1.95	$4.73 billion	$25.87	8.90
Ayala	N/A	N/A	N/A	C$27.26	0.32

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

Summary

Honeywell International beats Ayala on 11 of the 14 factors compared between the two stocks.

About Honeywell International

Honeywell International Inc. engages in the aerospace technologies, building automation, energy and sustainable solutions, and industrial automation businesses in the United States, Europe, and internationally. The company’s Aerospace segment offers auxiliary power units, propulsion engines, integrated avionics, environmental control and electric power systems, engine controls, flight safety, communications, navigation hardware, data and software applications, radar and surveillance systems, aircraft lighting, advanced systems and instruments, satellite and space components, and aircraft wheels and brakes; spare parts; repair, overhaul, and maintenance services; and thermal systems, as well as wireless connectivity services. Its Honeywell Building Technologies segment provides software applications for building control and optimization; sensors, switches, control systems, and instruments for energy management; access control; video surveillance; fire products; and installation, maintenance, and upgrades of systems. The company’s Performance Materials and Technologies segment offers automation control, instrumentation, and software and related services; catalysts and adsorbents, equipment, and consulting; and materials to manufacture end products, such as bullet-resistant armor, nylon, computer chips, and pharmaceutical packaging, as well as provides materials based on hydrofluoro-olefin technology. Its Safety and Productivity Solutions segment provides personal protective equipment, apparel, gear, and footwear; gas detection technology; custom-engineered sensors, switches, and controls for sensing and productivity solution; cloud-based notification and emergency messaging; mobile devices and software; custom-engineered sensors, switches, and controls; and data and asset management productivity solutions. Honeywell International Inc. was founded in 1885 and is headquartered in Charlotte, North Carolina.

About Ayala

Ayala Corporation engages in the real estate and hotel businesses in the Philippines, Europe, Asia, and the United States. It develops, constructs, leases, and sells residential and commercial lots, as well as develops and sells leisure properties; manages land bank; operates hotels, cinema, and theaters; and provides construction and property management services. The company also provides saving and time deposits, corporate, consumer, mortgage, leasing, and agri business loans; deposit and cash management, asset management, securities brokerage, foreign exchange and capital markets investment, corporate finance and consulting, investment banking, internet banking, foreign exchange, and safety deposit services; and life, non-life, pre-need, and reinsurance services. In addition, it offers digital wireless communication, long distance communication, broadband internet, wireline voice and data communication, and local exchange carrier services; and designs, develops, operates, administers, and manages software applications and systems. Further, the company offers electronics manufacturing, and power semiconductor assembly and testing services; and generates power using renewable and conventional technologies. Additionally, the company manufactures, distributes, sells, repairs, and services passenger cars, commercial vehicles, and motorcycles; and provides water delivery, sewerage, sanitation, and distribution services, as well as pipe works, used water management, and management services, as well as offers venture capital for technologies and businesses; and onshore and offshore outsourcing, air-chartered, consultancy, healthcare, infrastructure, logistics, and education services. It also provides agriculture services. The company was founded in 1834 and is headquartered in Makati City, the Philippines.