HON vs GE

For growth investors, GE Aerospace (GE) is the stronger pick with 18.

5% revenue growth year-over-year, versus 7. 8% for Honeywell International Inc. (HON). Honeywell International Inc. (HON) offers the better valuation at 29. 5x trailing P/E (20. 6x forward), making it the more compelling value choice. Analysts rate Honeywell International Inc. (HON) a "Buy" — based on 28 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On trailing P/E, Honeywell International Inc.

(HON) is the cheapest at 29. 5x versus GE Aerospace at 37. 5x. On forward P/E, Honeywell International Inc. is actually cheaper at 20. 6x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: GE Aerospace wins at 3. 42x versus Honeywell International Inc. 's 11. 22x.

Over the past 5 years, GE Aerospace (GE) delivered a total return of +370.

5%, compared to +3. 6% for Honeywell International Inc. (HON). Over 10 years, the gap is even starker: HON returned +134. 6% versus GE's +121. 3%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Honeywell International Inc.

(HON) is the lower-risk stock at 0. 74β versus GE Aerospace's 1. 14β — meaning GE is approximately 54% more volatile than HON relative to the S&P 500. On balance sheet safety, GE Aerospace (GE) carries a lower debt/equity ratio of 108% versus 2% for Honeywell International Inc. — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), GE Aerospace (GE) is pulling ahead at 18.

5% versus 7. 8% for Honeywell International Inc. (HON). On earnings-per-share growth, the picture is similar: GE Aerospace grew EPS 36. 2% year-over-year, compared to -15. 5% for Honeywell International Inc.. Over a 3-year CAGR, GE leads at 16. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

GE Aerospace (GE) is the more profitable company, earning 19.

0% net margin versus 12. 6% for Honeywell International Inc. — meaning it keeps 19. 0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: GE leads at 19. 1% versus 17. 5% for HON. At the gross margin level — before operating expenses — HON leads at 36. 9%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential.

By this metric, GE Aerospace (GE) is the more undervalued stock at a PEG of 3. 42x versus Honeywell International Inc. 's 11. 22x. Both stocks trade at elevated growth-adjusted valuations, so expected growth needs to materialise. On forward earnings alone, Honeywell International Inc. (HON) trades at 20. 6x forward P/E versus 40. 4x for GE Aerospace — 19. 8x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GE: 26. 3% to $386. 20.

All stocks in this comparison pay dividends.

Honeywell International Inc. (HON) offers the highest yield at 2. 1%, versus 0. 4% for GE Aerospace (GE).

For long-horizon retirement investors, Honeywell International Inc.

(HON) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 74), 2. 1% yield, +134. 6% 10Y return). Both have compounded well over 10 years (HON: +134. 6%, GE: +121. 3%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: HON is a mid-cap quality compounder stock; GE is a large-cap high-growth stock. HON pays a dividend while GE does not, making them suitable for different income and tax situations. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.