Analyzing Honeywell International (NYSE:HON) & LCI Industries (NYSE:LCII)

LCI Industries (NYSE:LCII) and Honeywell International (NYSE:HON) are both auto/tires/trucks companies, but which is the better business? We will contrast the two businesses based on the strength of their risk, valuation, profitability, earnings, analyst recommendations, institutional ownership and dividends.

Profitability

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

Net Margins Return on Equity Return on Assets
LCI Industries 5.61% 18.94% 10.84%
Honeywell International 16.73% 32.46% 10.02%

Valuation and Earnings

This table compares LCI Industries and Honeywell International’s revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
LCI Industries $2.48 billion 0.91 $148.55 million $5.86 15.42
Honeywell International $41.80 billion 3.08 $6.77 billion $8.01 22.11

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

Volatility and Risk

LCI Industries has a beta of 1.39, suggesting that its share price is 39% more volatile than the S&P 500. Comparatively, Honeywell International has a beta of 1.1, suggesting that its share price is 10% more volatile than the S&P 500.

Analyst Ratings

This is a breakdown of current recommendations for LCI Industries and Honeywell International, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
LCI Industries 0 2 4 0 2.67
Honeywell International 0 3 10 1 2.86

LCI Industries presently has a consensus target price of $101.25, indicating a potential upside of 12.04%. Honeywell International has a consensus target price of $177.18, indicating a potential upside of 0.02%. Given LCI Industries’ higher probable upside, analysts plainly believe LCI Industries is more favorable than Honeywell International.

Insider and Institutional Ownership

97.3% of LCI Industries shares are owned by institutional investors. Comparatively, 75.7% of Honeywell International shares are owned by institutional investors. 3.3% of LCI Industries shares are owned by company insiders. Comparatively, 0.7% of Honeywell International shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.

Dividends

LCI Industries pays an annual dividend of $2.60 per share and has a dividend yield of 2.9%. Honeywell International pays an annual dividend of $3.28 per share and has a dividend yield of 1.9%. LCI Industries pays out 44.4% of its earnings in the form of a dividend. Honeywell International pays out 40.9% 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 8 consecutive years.

Summary

Honeywell International beats LCI Industries on 12 of the 18 factors compared between the two stocks.

LCI Industries Company Profile

LCI Industries, together with its subsidiaries, manufactures and supplies components for the manufacturers of recreational vehicles (RVs) and adjacent industries in the United States and internationally. It operates in two segments, Original Equipment Manufacturers (OEM) and Aftermarket. The OEM segment manufactures or distributes various components for the OEMs of RVs and adjacent industries, including buses; trailers used to haul boats, livestock, equipment, and other cargo; travel trailers, fifth-wheel travel trailers, folding camping trailers, and truck campers; trucks; pontoon boats; trains; manufactured homes; and modular housing. Its products include steel chassis and related components; axles and suspension solutions; slide-out mechanisms and solutions; thermoformed bath, kitchen, and other products; vinyl, aluminum, and frameless windows; manual, electric, and hydraulic stabilizer and leveling systems; entry, luggage, patio, and ramp doors; furniture and mattresses; electric and manual entry steps; awnings and awning accessories; electronic components; appliances; televisions and sound systems; navigation systems; backup cameras; and other accessories. The Aftermarket segment supplies various components of RV and adjacent industries to retail dealers, wholesale distributors, and service centers. It also sells replacement glass and awnings to fulfill insurance claims. The company was formerly known as Drew Industries Incorporated and changed its name to LCI Industries in December 2016. LCI Industries was founded in 1962 and is based in Elkhart, Indiana.

Honeywell International Company Profile

Honeywell International Inc. operates as a diversified technology and manufacturing company worldwide. Its Aerospace segment supplies products, software, and services for aircrafts and vehicles. This 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 connected solutions and data services for the aftermarket, as well as provides wireless connectivity and management and technical services. The company's Honeywell Building Technologies segment offers products, software, solutions, and technologies, such as sensors, switches, control systems and instruments for energy management; access control; video surveillance; fire products; remote patient monitoring systems; advanced software applications; and installation, maintenance and upgrades of systems. Its Performance Materials and Technologies segment develops and manufactures process technology products, including catalysts and adsorbents, equipment, and consulting services. The company's Safety and Productivity Solutions segment provides products, software, and connected solutions. Its safety products comprise personal protection equipment, apparel, gear, and footwear; gas detection technology; and cloud-based notification and emergency messaging. This segment's productivity solutions products and services include mobile devices and software; supply chain and warehouse automation equipment, software and solutions; custom-engineered sensors, switches, and controls; and software-based data and asset management productivity solutions. Honeywell International Inc. was incorporated in 1985 and is based in Morris Plains, New Jersey.

Receive News & Ratings for LCI Industries Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for LCI Industries and related companies with MarketBeat.com's FREE daily email newsletter.