HON
Honeywell International Inc.
Conglomerates
Market Cap$137.39B
5Y Perf.+48.1%
Compare Stocks
2 / 10Try these comparisons:
Stock Comparison
HON vs ITW
Revenue, margins, valuation, and 5-year total return — side by side.
ITW
Illinois Tool Works Inc.
Industrial - Machinery
Market Cap$75.08B
5Y Perf.+48.2%
HON vs ITW — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | HON | ITW |
|---|---|---|
| Industry | Conglomerates | Industrial - Machinery |
| Market Cap | $137.39B | $75.08B |
| Revenue (TTM) | $36.76B | $16.22B |
| Net Income (TTM) | $4.10B | $3.13B |
| Gross Margin | 36.9% | 44.1% |
| Operating Margin | 14.9% | 26.4% |
| Forward P/E | 20.5x | 22.7x |
| Total Debt | $34.58B | $8.97B |
| Cash & Equiv. | $12.49B | $851M |
HON vs ITW — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
HON
ITW
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Honeywell Internati… (HON) | 100 | 148.1 | +48.1% |
| Illinois Tool Works… (ITW) | 100 | 148.2 | +48.2% |
Price return only. Dividends and distributions are not included.
Quick Verdict: HON vs ITW
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: ITW leads in 5 of 7 categories, making it the strongest pick for profitability and margin quality and capital preservation and lower volatility. Honeywell International Inc. is the stronger pick specifically for growth and revenue expansion and valuation and capital efficiency. As sector peers, any of these can serve as alternatives in the same allocation.
HON
Honeywell International Inc.
The Growth Play
HON is the clearest fit if your priority is growth exposure and sleep-well-at-night.
- Rev growth 7.8%, EPS growth -15.5%, 3Y rev CAGR 1.8%
- Lower volatility, beta 0.74, current ratio 1.32x
- 7.8% revenue growth vs ITW's 0.9%
Best for: growth exposure and sleep-well-at-night
ITW
Illinois Tool Works Inc.
The Income Pick
ITW carries the broadest edge in this set and is the clearest fit for income & stability and long-term compounding.
- Dividend streak 12 yrs, beta 0.67, yield 2.3%
- 193.9% 10Y total return vs HON's 134.6%
- PEG 2.36 vs HON's 11.18
Best for: income & stability and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | HON | 7.8% revenue growth vs ITW's 0.9% |
| Value | HON | Lower P/E (20.5x vs 22.7x) |
| Quality / Margins | ITW | 19.3% margin vs HON's 11.2% |
| Stability / Safety | ITW | Beta 0.67 vs HON's 0.74 |
| Dividends | ITW | 2.3% yield, 12-year raise streak, vs HON's 2.1% |
| Momentum (1Y) | ITW | +11.2% vs HON's +5.5% |
| Efficiency (ROA) | ITW | 19.4% ROA vs HON's 5.3%, ROIC 29.0% vs 12.6% |
HON vs ITW — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2025
FY 2025
HON vs ITW — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLITWLAGGINGHON
HONHoneywell Internation…
1leads
ITWIllinois Tool Works I…
3leads
6 Total Categories
CATEGORYLEADERvs HONMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
ITW6/6
Valuation MetricsMultiples, price ratios, and targets
HON4/7
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
ITW7/9
Total Returns1Y, 3Y, 5Y total returns with dividends
ITW5/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
Tied
—
Income & Cash Flow (Last 12 Months)
ITW leads this category, winning 6 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
HON is the larger business by revenue, generating $36.8B annually — 2.3x ITW's $16.2B. ITW is the more profitable business, keeping 19.3% of every revenue dollar as net income compared to HON's 11.2%. On growth, ITW holds the edge at +4.6% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | HONHoneywell Interna… | ITWIllinois Tool Wor… |
|---|---|---|
| RevenueTrailing 12 months | $36.8B | $16.2B |
| EBITDAEarnings before interest/tax | $6.5B | $4.6B |
| Net IncomeAfter-tax profit | $4.1B | $3.1B |
| Free Cash FlowCash after capex | $4.2B | $2.2B |
| Gross MarginGross profit ÷ Revenue | +36.9% | +44.1% |
| Operating MarginEBIT ÷ Revenue | +14.9% | +26.4% |
| Net MarginNet income ÷ Revenue | +11.2% | +19.3% |
| FCF MarginFCF ÷ Revenue | +11.4% | +13.6% |
| Rev. Growth (YoY)Latest quarter vs prior year | -6.9% | +4.6% |
| EPS Growth (YoY)Latest quarter vs prior year | -41.9% | +11.8% |
ITW leads this category, winning 6 of 6 comparable metrics.
Valuation Metrics
HON leads this category, winning 4 of 7 comparable metrics.
Valuation Metrics
At 24.8x trailing earnings, ITW trades at a 16% valuation discount to HON's 29.5x P/E. Adjusting for growth (PEG ratio), ITW offers better value at 2.58x vs HON's 16.04x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | HONHoneywell Interna… | ITWIllinois Tool Wor… |
|---|---|---|
| Market CapShares × price | $137.4B | $75.1B |
| Enterprise ValueMkt cap + debt − cash | $159.5B | $83.2B |
| Trailing P/EPrice ÷ TTM EPS | 29.46x | 24.84x |
| Forward P/EPrice ÷ next-FY EPS est. | 20.52x | 22.68x |
| PEG RatioP/E ÷ EPS growth rate | 16.04x | 2.58x |
| EV / EBITDAEnterprise value multiple | 20.05x | 18.06x |
| Price / SalesMarket cap ÷ Revenue | 3.67x | 4.68x |
| Price / BookPrice ÷ Book value/share | 9.03x | 23.61x |
| Price / FCFMarket cap ÷ FCF | 25.48x | 27.74x |
HON leads this category, winning 4 of 7 comparable metrics.
Profitability & Efficiency
ITW leads this category, winning 7 of 9 comparable metrics.
Profitability & Efficiency
ITW delivers a 97.4% return on equity — every $100 of shareholder capital generates $97 in annual profit, vs $23 for HON. HON carries lower financial leverage with a 2.24x debt-to-equity ratio, signaling a more conservative balance sheet compared to ITW's 2.78x. On the Piotroski fundamental quality scale (0–9), HON scores 6/9 vs ITW's 5/9, reflecting solid financial health.
| Metric | HONHoneywell Interna… | ITWIllinois Tool Wor… |
|---|---|---|
| ROE (TTM)Return on equity | +23.1% | +97.4% |
| ROA (TTM)Return on assets | +5.3% | +19.4% |
| ROICReturn on invested capital | +12.6% | +29.0% |
| ROCEReturn on capital employed | +12.6% | +38.7% |
| Piotroski ScoreFundamental quality 0–9 | 6 | 5 |
| Debt / EquityFinancial leverage | 2.24x | 2.78x |
| Net DebtTotal debt minus cash | $22.1B | $8.1B |
| Cash & Equiv.Liquid assets | $12.5B | $851M |
| Total DebtShort + long-term debt | $34.6B | $9.0B |
| Interest CoverageEBIT ÷ Interest expense | 3.92x | 14.53x |
ITW leads this category, winning 7 of 9 comparable metrics.
Total Returns (Dividends Reinvested)
ITW leads this category, winning 5 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in ITW five years ago would be worth $12,158 today (with dividends reinvested), compared to $10,364 for HON. Over the past 12 months, ITW leads with a +11.2% total return vs HON's +5.5%. The 3-year compound annual growth rate (CAGR) favors ITW at 6.8% vs HON's 5.2% — a key indicator of consistent wealth creation.
| Metric | HONHoneywell Interna… | ITWIllinois Tool Wor… |
|---|---|---|
| YTD ReturnYear-to-date | +11.3% | +5.1% |
| 1-Year ReturnPast 12 months | +5.5% | +11.2% |
| 3-Year ReturnCumulative with dividends | +16.6% | +21.7% |
| 5-Year ReturnCumulative with dividends | +3.6% | +21.6% |
| 10-Year ReturnCumulative with dividends | +134.6% | +193.9% |
| CAGR (3Y)Annualised 3-year return | +5.2% | +6.8% |
ITW leads this category, winning 5 of 6 comparable metrics.
Risk & Volatility
Evenly matched — HON and ITW each lead in 1 of 2 comparable metrics.
Risk & Volatility
ITW is the less volatile stock with a 0.67 beta — it tends to amplify market swings less than HON's 0.74 beta. A beta below 1.0 means the stock typically moves less than the S&P 500.
| Metric | HONHoneywell Interna… | ITWIllinois Tool Wor… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.74x | 0.67x |
| 52-Week HighHighest price in past year | $248.18 | $303.16 |
| 52-Week LowLowest price in past year | $186.76 | $236.68 |
| % of 52W HighCurrent price vs 52-week peak | +87.4% | +85.9% |
| RSI (14)Momentum oscillator 0–100 | 32.3 | 37.8 |
| Avg Volume (50D)Average daily shares traded | 3.7M | 1.2M |
Evenly matched — HON and ITW each lead in 1 of 2 comparable metrics.
Analyst Outlook
Evenly matched — HON and ITW each lead in 1 of 2 comparable metrics.
Analyst Outlook
Wall Street rates HON as "Buy" and ITW as "Hold". Consensus price targets imply 12.5% upside for HON (target: $244) vs 5.0% for ITW (target: $274). For income investors, ITW offers the higher dividend yield at 2.34% vs HON's 2.14%.
| Metric | HONHoneywell Interna… | ITWIllinois Tool Wor… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Buy | Hold |
| Price TargetConsensus 12-month target | $243.83 | $273.67 |
| # AnalystsCovering analysts | 28 | 28 |
| Dividend YieldAnnual dividend ÷ price | +2.1% | +2.3% |
| Dividend StreakConsecutive years of raises | 15 | 12 |
| Dividend / ShareAnnual DPS | $4.63 | $6.11 |
| Buyback YieldShare repurchases ÷ mkt cap | +2.8% | +2.0% |
Evenly matched — HON and ITW each lead in 1 of 2 comparable metrics.
Key Takeaway
ITW leads in 3 of 6 categories (Income & Cash Flow, Profitability & Efficiency). HON leads in 1 (Valuation Metrics). 2 tied.
Best OverallIllinois Tool Works Inc. (ITW)Leads 3 of 6 categories
Loading custom metrics...
HON vs ITW: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is HON or ITW a better buy right now?
For growth investors, Honeywell International Inc.
(HON) is the stronger pick with 7. 8% revenue growth year-over-year, versus 0. 9% for Illinois Tool Works Inc. (ITW). Illinois Tool Works Inc. (ITW) offers the better valuation at 24. 8x trailing P/E (22. 7x 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.
02Which has the better valuation — HON or ITW?
On trailing P/E, Illinois Tool Works Inc.
(ITW) is the cheapest at 24. 8x versus Honeywell International Inc. at 29. 5x. On forward P/E, Honeywell International Inc. is actually cheaper at 20. 5x — notably different from the trailing picture, reflecting expected earnings growth. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Illinois Tool Works Inc. wins at 2. 36x versus Honeywell International Inc. 's 11. 18x.
03Which is the better long-term investment — HON or ITW?
Over the past 5 years, Illinois Tool Works Inc.
(ITW) delivered a total return of +21. 6%, compared to +3. 6% for Honeywell International Inc. (HON). Over 10 years, the gap is even starker: ITW returned +189. 4% versus HON's +135. 1%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — HON or ITW?
By beta (market sensitivity over 5 years), Illinois Tool Works Inc.
(ITW) is the lower-risk stock at 0. 67β versus Honeywell International Inc. 's 0. 74β — meaning HON is approximately 11% more volatile than ITW relative to the S&P 500. On balance sheet safety, Honeywell International Inc. (HON) carries a lower debt/equity ratio of 2% versus 3% for Illinois Tool Works Inc. — giving it more financial flexibility in a downturn.
05Which is growing faster — HON or ITW?
By revenue growth (latest reported year), Honeywell International Inc.
(HON) is pulling ahead at 7. 8% versus 0. 9% for Illinois Tool Works Inc. (ITW). On earnings-per-share growth, the picture is similar: Illinois Tool Works Inc. grew EPS -10. 4% year-over-year, compared to -15. 5% for Honeywell International Inc.. Over a 3-year CAGR, HON leads at 1. 8% 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.
06Which has better profit margins — HON or ITW?
Illinois Tool Works Inc.
(ITW) is the more profitable company, earning 19. 1% net margin versus 12. 6% for Honeywell International Inc. — meaning it keeps 19. 1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: ITW leads at 26. 3% versus 17. 5% for HON. At the gross margin level — before operating expenses — ITW leads at 44. 1%, 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.
07Is HON or ITW more undervalued right now?
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, Illinois Tool Works Inc. (ITW) is the more undervalued stock at a PEG of 2. 36x versus Honeywell International Inc. 's 11. 18x. 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. 5x forward P/E versus 22. 7x for Illinois Tool Works Inc. — 2. 2x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HON: 12. 5% to $243. 83.
08Which pays a better dividend — HON or ITW?
All stocks in this comparison pay dividends.
Illinois Tool Works Inc. (ITW) offers the highest yield at 2. 3%, versus 2. 1% for Honeywell International Inc. (HON).
09Is HON or ITW better for a retirement portfolio?
For long-horizon retirement investors, Illinois Tool Works Inc.
(ITW) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0. 67), 2. 3% yield, +189. 4% 10Y return). Both have compounded well over 10 years (ITW: +189. 4%, HON: +135. 1%), 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.
10What are the main differences between HON and ITW?
Both stocks operate in the Industrials sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.
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.
Find Stocks Like These
Explore pre-built screens for each stock's profile, or build a custom screen to find stocks that outperform both.
Revenue Growth>
%
(HON: -6.9% · ITW: 4.6%)Net Margin>
%
(HON: 11.2% · ITW: 19.3%)P/E Ratio<
x
(HON: 29.5x · ITW: 24.8x)You Might Also Compare
Based on how these companies actually compete and overlap — not just which sector they're filed under.