HC2 Holdings (NYSE: HCHC) and Honeywell International (NYSE:HON) are both industrial conglomerates companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, institutional ownership, dividends, risk, earnings, profitability and valuation.
Honeywell International pays an annual dividend of $2.66 per share and has a dividend yield of 1.8%. HC2 Holdings does not pay a dividend. Honeywell International pays out 40.3% of its earnings in the form of a dividend. HC2 Holdings has raised its dividend for 6 consecutive years.
Risk and Volatility
HC2 Holdings has a beta of 0.68, suggesting that its share price is 32% less volatile than the S&P 500. Comparatively, Honeywell International has a beta of 0.97, suggesting that its share price is 3% less volatile than the S&P 500.
Earnings & Valuation
This table compares HC2 Holdings and Honeywell International’s gross revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||NetIncome||Earnings Per Share||Price/Earnings Ratio|
|Honeywell International||$39.30 billion||2.86||$4.81 billion||$6.60||22.32|
Honeywell International has higher revenue and earnings than HC2 Holdings. HC2 Holdings is trading at a lower price-to-earnings ratio than Honeywell International, indicating that it is currently the more affordable of the two stocks.
This table compares HC2 Holdings and Honeywell International’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider & Institutional Ownership
76.2% of Honeywell International shares are owned by institutional investors. 1.6% of Honeywell International shares are owned by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.
This is a summary of recent ratings and price targets for HC2 Holdings and Honeywell International, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
HC2 Holdings currently has a consensus target price of $11.50, suggesting a potential upside of 131.85%. Honeywell International has a consensus target price of $153.17, suggesting a potential upside of 3.97%. Given HC2 Holdings’ stronger consensus rating and higher possible upside, research analysts clearly believe HC2 Holdings is more favorable than Honeywell International.
Honeywell International beats HC2 Holdings on 10 of the 14 factors compared between the two stocks.
About HC2 Holdings
HC2 Holdings, Inc. engages in construction, marine services, insurance, telecommunications, energy, life sciences, and other businesses in the United States, the United Kingdom, and internationally. The company fabricates and erects structural steel for commercial and industrial construction projects, such as buildings and office complexes, hotels and casinos, convention centers, sports arenas and stadiums, shopping malls, hospitals, dams, bridges, mines, and power plants. It also fabricates trusses and girders; and fabricates and erects water pipes, water storage tanks, pollution control scrubbers, tunnel liners, pressure vessels, strainers, filters, separators, and various customized products. In addition, the company provides subsea cable installation and maintenance services for the telecommunications sector; installation, maintenance, and repair services for fiber optic communication and power infrastructure to offshore platforms; and installation services for power cables for use in offshore wind farms and in the offshore wind market. Further, it distributes natural gas motor fuels; designs, builds, owns, acquires, operates, and maintains compressed natural gas fueling stations for transportation vehicles; and offers voice communication services for national telecommunications, mobile, prepaid, and voice over Internet protocol service operators, as well as wholesale carriers and Internet service providers. Additionally, the company provides long-term care, life, and annuity insurance products to individuals. Furthermore, it focuses on developing products to treat early osteoarthritis of the knee; develops skin lightening technology; owns licenses to create and distribute NASCAR video games; and offers analytics on broadcast TV, digital, and social media online platforms. The company was formerly known as PTGi Holding Inc. and changed its name to HC2 Holdings, Inc. in April 2014. HC2 Holdings, Inc. was founded in 1994 and is headquartered in New York, New York.
About Honeywell International
Honeywell International Inc. is a technology and manufacturing company. The Company operates through four segments: Aerospace, Home and Building Technologies, Performance Materials and Technologies, and Safety and Productivity Solutions. The Company’s Aerospace segment supplies products, software and services for aircraft and vehicles that it sells to original equipment manufacturers (OEMs) and other customers. The Home and Building Technologies segment provides products, software, solutions and technologies that help owners of homes stay connected and in control of their comfort, security and energy use. The Performance Materials and Technologies segment is engaged in developing and manufacturing materials, process technologies and automation solutions. The Safety and Productivity Solutions segment is engaged in providing products, software and connected solutions to customers that manage productivity, workplace safety and asset performance.
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