Marubeni (OTCMKTS:MARUY – Get Free Report) and Honeywell International (NASDAQ:HON – Get Free Report) are both large-cap industrials companies, but which is the superior stock? We will contrast the two companies based on the strength of their valuation, earnings, analyst recommendations, risk, dividends, institutional ownership and profitability.
Analyst Ratings
This is a summary of current ratings and price targets for Marubeni and Honeywell International, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Marubeni | 0 | 1 | 0 | 1 | 3.00 |
| Honeywell International | 1 | 12 | 12 | 0 | 2.44 |
Honeywell International has a consensus price target of $249.29, suggesting a potential upside of 9.23%. Given Honeywell International’s higher probable upside, analysts plainly believe Honeywell International is more favorable than Marubeni.
Insider and Institutional Ownership
0.1% of Marubeni shares are held by institutional investors. Comparatively, 75.9% of Honeywell International shares are held by institutional investors. 0.2% of Honeywell International shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company will outperform the market over the long term.
Dividends
Marubeni pays an annual dividend of $0.55 per share and has a dividend yield of 1.7%. Honeywell International pays an annual dividend of $7.14 per share and has a dividend yield of 3.1%. Marubeni pays out 32.0% of its earnings in the form of a dividend. Honeywell International pays out 32.1% 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.
Profitability
This table compares Marubeni and Honeywell International’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Marubeni | 6.34% | 9.73% | 4.19% |
| Honeywell International | 24.36% | 25.62% | 6.56% |
Risk & Volatility
Marubeni has a beta of 0.6, suggesting that its stock price is 40% less volatile than the S&P 500. Comparatively, Honeywell International has a beta of 0.86, suggesting that its stock price is 14% less volatile than the S&P 500.
Earnings & Valuation
This table compares Marubeni and Honeywell International”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Marubeni | $54.91 billion | 0.96 | $3.59 billion | $1.72 | 18.44 |
| Honeywell International | $37.44 billion | 1.93 | $4.73 billion | $22.23 | 10.27 |
Honeywell International has lower revenue, but higher earnings than Marubeni. Honeywell International is trading at a lower price-to-earnings ratio than Marubeni, indicating that it is currently the more affordable of the two stocks.
Summary
Honeywell International beats Marubeni on 13 of the 18 factors compared between the two stocks.
About Marubeni
Marubeni is a Japanese general trading and investment company with business activities spanning multiple industries. Its operations include trading, developing projects, and investing in businesses across global markets. The company’s portfolio includes food and agricultural products, metals and mineral resources, energy and chemicals, power and infrastructure, transportation equipment, and forest products. It also provides services in areas such as finance, logistics, leasing, real estate, and information technology.
About Honeywell International
Honeywell International is a technology and manufacturing company whose products and services support aerospace, buildings, industrial operations and energy applications. Its offerings include aircraft systems and components, building controls and safety technologies, industrial automation and process-control systems, and specialty materials. The company serves commercial and government customers in markets around the world. Its technologies are used in settings ranging from aircraft and commercial buildings to factories, warehouses and energy facilities.
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