Analyzing Honeywell International (NASDAQ:HON) and China Resources Enterprise (OTCMKTS:CRHKY)

Honeywell International (NASDAQ:HON) and China Resources Enterprise (OTCMKTS:CRHKY) are both large-cap multi-sector conglomerates companies, but which is the superior business? We will compare the two businesses based on the strength of their institutional ownership, risk, analyst recommendations, earnings, valuation, profitability and dividends.

Profitability

This table compares Honeywell International and China Resources Enterprise’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Honeywell International	14.30%	37.37%	8.87%
China Resources Enterprise	N/A	N/A	N/A

Dividends

Honeywell International pays an annual dividend of $4.52 per share and has a dividend yield of 2.2%. China Resources Enterprise pays an annual dividend of $0.22 per share and has a dividend yield of 3.2%. Honeywell International pays out 51.4% of its earnings in the form of a dividend. Honeywell International has increased its dividend for 14 consecutive years.

Institutional & Insider Ownership

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 large money managers, hedge funds and endowments believe a company is poised for long-term growth.

Volatility and Risk

Honeywell International has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500. Comparatively, China Resources Enterprise has a beta of 0.05, indicating that its stock price is 95% less volatile than the S&P 500.

Valuation and Earnings

This table compares Honeywell International and China Resources Enterprise”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Honeywell International	$38.50 billion	3.43	$5.71 billion	$8.79	23.68
China Resources Enterprise	$5.37 billion	2.06	$659.20 million	N/A	N/A

Honeywell International has higher revenue and earnings than China Resources Enterprise.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Honeywell International and China Resources Enterprise, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Honeywell International	0	8	8	1	2.59
China Resources Enterprise	0	0	0	0	0.00

Honeywell International currently has a consensus target price of $254.00, indicating a potential upside of 22.00%. Given Honeywell International’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Honeywell International is more favorable than China Resources Enterprise.

Summary

Honeywell International beats China Resources Enterprise on 14 of the 16 factors compared between the two stocks.

About Honeywell International

Honeywell International Inc. engages in the aerospace technologies, building automation, energy and sustainable solutions, and industrial automation businesses in the United States, Europe, and internationally. The company’s Aerospace segment offers auxiliary power units, propulsion engines, integrated avionics, environmental control and electric power systems, engine controls, flight safety, communications, navigation hardware, data and software applications, radar and surveillance systems, aircraft lighting, advanced systems and instruments, satellite and space components, and aircraft wheels and brakes; spare parts; repair, overhaul, and maintenance services; and thermal systems, as well as wireless connectivity services. Its Honeywell Building Technologies segment provides software applications for building control and optimization; sensors, switches, control systems, and instruments for energy management; access control; video surveillance; fire products; and installation, maintenance, and upgrades of systems. The company’s Performance Materials and Technologies segment offers automation control, instrumentation, and software and related services; catalysts and adsorbents, equipment, and consulting; and materials to manufacture end products, such as bullet-resistant armor, nylon, computer chips, and pharmaceutical packaging, as well as provides materials based on hydrofluoro-olefin technology. Its Safety and Productivity Solutions segment provides personal protective equipment, apparel, gear, and footwear; gas detection technology; custom-engineered sensors, switches, and controls for sensing and productivity solution; cloud-based notification and emergency messaging; mobile devices and software; custom-engineered sensors, switches, and controls; and data and asset management productivity solutions. Honeywell International Inc. was founded in 1885 and is headquartered in Charlotte, North Carolina.

About China Resources Enterprise

China Resources Beer (Holdings) Company Limited, an investment holding company, manufactures, distributes, and sells beer products in Mainland China. The company offers its products under the Nong Li, Snow, and Jinsha brands. The company was formerly known as China Resources Enterprise, Limited and changed its name to China Resources Beer (Holdings) Company Limited in October 2015. The company was incorporated in 1965 and is based in Wan Chai, Hong Kong. China Resources Beer (Holdings) Company Limited operates as a subsidiary of CRH (Beer) Limited.