Honeywell International (NASDAQ: CAAS) and China Automotive Systems (NASDAQ:CAAS) are both multi-sector conglomerates companies, but which is the superior stock? We will contrast the two companies based on the strength of their analyst recommendations, dividends, valuation, profitability, risk, earnings and institutional ownership.
Volatility & Risk
Honeywell International has a beta of 1.03, meaning that its stock price is 3% more volatile than the S&P 500. Comparatively, China Automotive Systems has a beta of 1.72, meaning that its stock price is 72% more volatile than the S&P 500.
Valuation & Earnings
This table compares Honeywell International and China Automotive Systems’ gross revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Honeywell International||$40.53 billion||2.88||$1.66 billion||$7.11||22.08|
|China Automotive Systems||$499.06 million||0.25||-$19.34 million||$0.64||6.28|
Honeywell International has higher revenue and earnings than China Automotive Systems. China Automotive Systems 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 is a summary of recent recommendations and price targets for Honeywell International and China Automotive Systems, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|China Automotive Systems||0||0||0||0||N/A|
Honeywell International presently has a consensus target price of $171.69, suggesting a potential upside of 9.37%. Given Honeywell International’s higher possible upside, research analysts clearly believe Honeywell International is more favorable than China Automotive Systems.
Honeywell International pays an annual dividend of $2.98 per share and has a dividend yield of 1.9%. China Automotive Systems does not pay a dividend. Honeywell International pays out 41.9% of its earnings in the form of a dividend. Honeywell International has raised its dividend for 7 consecutive years.
Insider and Institutional Ownership
74.5% of Honeywell International shares are held by institutional investors. Comparatively, 5.2% of China Automotive Systems shares are held by institutional investors. 1.3% of Honeywell International shares are held by company insiders. Comparatively, 62.2% of China Automotive Systems shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock is poised for long-term growth.
This table compares Honeywell International and China Automotive Systems’ net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|China Automotive Systems||-5.52%||3.39%||1.53%|
Honeywell International beats China Automotive Systems on 13 of the 16 factors compared between the two stocks.
Honeywell International Company Profile
Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. It operates through four segments: Aerospace; Home and Building Technologies; Performance Materials and Technologies; and Safety and Productivity Solutions. The Aerospace segment supplies products, software, and services for aircraft and vehicles that it sells to original equipment manufacturers and other customers in various markets, including air transport, regional, business and general aviation aircraft, airlines, aircraft operators, defense and space contractors, and automotive and truck manufacturers. The Home and Building Technologies segment provides products, software, solutions, and technologies that help homes owners, commercial building owners, and occupants. The Performance Materials and Technologies segment develops and manufactures advanced materials, process technologies, and automation solutions. The Safety and Productivity Solutions segment provides products, software, and connected solutions to customers that enhance productivity, workplace safety, and asset performance. Honeywell International Inc. was founded in 1920 and is headquartered in Morris Plains, New Jersey.
China Automotive Systems Company Profile
China Automotive Systems, Inc., through its subsidiaries, manufactures and sells automotive systems and components in the People's Republic of China. The company produces rack and pinion power steering gears for cars and light duty vehicles; integral power steering gears for heavy-duty vehicles; power steering parts for light duty vehicles; sensor modules; automobile steering systems and columns; and automobile electronic systems and parts. It is also involved in the marketing of automotive parts in North America and Brazil, as well as the provision of after sales, and research and development support services. The company primarily sells its products to the original equipment manufacturing customers. China Automotive Systems, Inc. was founded in 2003 and is headquartered in Jing Zhou, the People's Republic of China.
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