Honeywell International (NASDAQ:HON) versus Siemens (OTCMKTS:SIEGY) Financial Review

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

Analyst Recommendations

This is a breakdown of current recommendations and price targets for Siemens and Honeywell International, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Siemens	1	4	5	1	2.55
Honeywell International	0	13	13	0	2.50

Honeywell International has a consensus price target of $251.48, suggesting a potential upside of 18.74%. Given Honeywell International’s higher possible upside, analysts plainly believe Honeywell International is more favorable than Siemens.

Dividends

Siemens pays an annual dividend of $2.33 per share and has a dividend yield of 1.5%. Honeywell International pays an annual dividend of $9.52 per share and has a dividend yield of 4.5%. Siemens pays out 39.5% of its earnings in the form of a dividend. Honeywell International pays out 36.8% 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. Honeywell International is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Insider & Institutional Ownership

0.7% of Siemens shares are owned by institutional investors. Comparatively, 75.9% of Honeywell International shares are owned by institutional investors. 0.2% of Honeywell International shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Siemens	9.79%	11.13%	4.75%
Honeywell International	23.90%	34.00%	7.37%

Risk & Volatility

Siemens has a beta of 1.38, meaning that its stock price is 38% more volatile than the S&P 500. Comparatively, Honeywell International has a beta of 0.87, meaning that its stock price is 13% less volatile than the S&P 500.

Valuation and Earnings

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Siemens	$87.26 billion	2.82	$10.65 billion	$5.90	26.67
Honeywell International	$38.06 billion	1.76	$4.73 billion	$25.87	8.19

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

Summary

Honeywell International beats Siemens on 11 of the 18 factors compared between the two stocks.

About Siemens

Siemens Aktiengesellschaft, a technology company, focuses in the areas of automation and digitalization in Europe, Commonwealth of Independent States, Africa, the Middle East, the Americas, Asia, and Australia. It operates through Digital Industries, Smart Infrastructure, Mobility, Siemens Healthineers, and Siemens Financial Services (SFS) segments. The Digital Industries segment provides automation systems and software for factories, numerical control systems, servo motors, drives and inverters, and integrated automation systems for machine tools and production machines; process control systems, machine-to-machine communication products, sensors and radio frequency identification systems; software for production and product lifecycle management, and simulation and testing of mechatronic systems; and the Mendix cloud-native low-code application development platform. The Smart Infrastructure segment offers products, systems, solutions, services, and software to support sustainable transition in energy generation from fossil and renewable sources; sustainable buildings and communities; and buildings, electrification, and electrical products. The Mobility segment provides rail passenger and freight transportation, such as vehicles, trams and light rail, and commuter trains, as well as trains and passenger coaches; locomotives and solutions for automated transportation; products and solutions for rail automation; electrification products; maintenance and digital services; and digital and cloud-based solutions, and related services. The Siemens Healthineers segment develops, manufactures, and sells various diagnostic and therapeutic products and services; and provides clinical consulting and training services. The SFS segment offers debt and equity investments; leasing, lending, and working capital, structured, equipment, and project financing; and financial advisory services. Siemens Aktiengesellschaft was founded in 1847 and is headquartered in Munich, Germany.

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.