Griffon (NYSE:GFF) vs. Honeywell International (NASDAQ:HON) Critical Survey

Griffon (NYSE:GFF) and Honeywell International (NASDAQ:HON) are both multi-sector conglomerates companies, but which is the better stock? We will compare the two companies based on the strength of their profitability, analyst recommendations, valuation, institutional ownership, dividends, earnings and risk.

Volatility and Risk

Griffon has a beta of 1.36, indicating that its stock price is 36% more volatile than the S&P 500. Comparatively, Honeywell International has a beta of 0.93, indicating that its stock price is 7% less volatile than the S&P 500.

Dividends

Griffon pays an annual dividend of $0.88 per share and has a dividend yield of 1.2%. Honeywell International pays an annual dividend of $4.76 per share and has a dividend yield of 2.0%. Griffon pays out 95.7% of its earnings in the form of a dividend, suggesting it may not have sufficient earnings to cover its dividend payment in the future. Honeywell International pays out 59.6% of its earnings in the form of a dividend. Griffon has raised its dividend for 1 consecutive years and Honeywell International has raised 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.

Analyst Ratings

This is a breakdown of current ratings and target prices for Griffon and Honeywell International, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Griffon	1	1	2	2	2.83
Honeywell International	1	7	14	0	2.59

Griffon currently has a consensus price target of $107.67, indicating a potential upside of 41.74%. Honeywell International has a consensus price target of $251.83, indicating a potential upside of 8.33%. Given Griffon’s stronger consensus rating and higher possible upside, research analysts clearly believe Griffon is more favorable than Honeywell International.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Griffon	1.76%	228.83%	12.35%
Honeywell International	12.74%	40.64%	8.89%

Institutional & Insider Ownership

73.2% of Griffon shares are held by institutional investors. Comparatively, 75.9% of Honeywell International shares are held by institutional investors. 10.2% of Griffon shares are held by company insiders. Comparatively, 0.2% of Honeywell International shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Valuation & Earnings

This table compares Griffon and Honeywell International”s revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Griffon	$2.52 billion	1.40	$51.11 million	$0.92	82.57
Honeywell International	$37.44 billion	3.95	$4.73 billion	$7.99	29.10

Honeywell International has higher revenue and earnings than Griffon. Honeywell International is trading at a lower price-to-earnings ratio than Griffon, indicating that it is currently the more affordable of the two stocks.

Summary

Honeywell International beats Griffon on 10 of the 18 factors compared between the two stocks.

About Griffon

Griffon Corporation, through its subsidiaries, provides consumer and professional, and home and building products in the United States, Europe, Canada, Australia, and internationally. The company operates through two segments: Home and Building Products, and Consumer and Professional Products. The Home and Building Products segment manufactures and markets residential and commercial sectional garage doors, rolling steel service doors, fire doors, shutters, steel security grilles, and room dividers for the use in commercial construction and repair, and home remodeling applications. The segment also sells related products, such as garage door openers. The Consumer and Professional Products segment manufactures and markets long-handled engineered tools, including spades, hoes, cultivators, weeders, post hole diggers, scrapers, edgers and forks; wheelbarrows and lawn carts; snow tools comprising pushers, roof rakes, sled sleigh shovels, scoops, and ice scrapers; and pruning products, such as pruners, loppers, shears, and other tools. The segment also offers striking tools, including axes, picks, mattocks, mauls, wood splitters, sledgehammers, pry bars, and repair handles; traditional and gardening hand tools comprising hammers, screwdrivers, pliers, adjustable wrenches, handsaws, tape measures, levels, clamps, trowels, cultivators, weeders, and other hand tools; indoor and outdoor planters and lawn accessories; and garden hoses and hose reels. In addition, the segment provides home organization products, including wire and wood shelving, containers, storage cabinets, and other closet and home organization accessories; residential, industrial, and commercial fans; and cleaning products, such as brooms, brushes, squeegees, and other cleaning products. The company was formerly known as Instrument Systems Corporation and changed its name to Griffon Corporation in June 1992. Griffon Corporation was founded in 1774 and is headquartered in New York, New York.

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.