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HON vs UNP

HON
Honeywell International Inc.
BEARISH
Price
$219.97
Market Cap
$139.38B
Sector
Industrials
AI Confidence
85%
UNP
Union Pacific Corporation
NEUTRAL
Price
$249.40
Market Cap
$148.06B
Sector
Industrials
AI Confidence
85%

Valuation

P/E Ratio
HON
31.74
UNP
20.84
Forward P/E
HON
19.18
UNP
18.37
P/B Ratio
HON
10.05
UNP
8.01
P/S Ratio
HON
3.72
UNP
6.04
EV/EBITDA
HON
19.32
UNP
14.41

Profitability

Gross Margin
HON
36.93%
UNP
56.35%
Operating Margin
HON
15.41%
UNP
40.89%
Profit Margin
HON
12.63%
UNP
29.12%
ROE
HON
26.14%
UNP
40.38%
ROA
HON
5.95%
UNP
9.07%

Growth

Revenue Growth
HON
-3.3%
UNP
-0.6%
Earnings Growth
HON
-76.4%
UNP
6.8%

Financial Health

Debt/Equity
HON
2.37
UNP
1.78
Current Ratio
HON
1.3
UNP
0.91
Quick Ratio
HON
0.88
UNP
0.67

Dividends

Dividend Yield
HON
2.16%
UNP
2.21%
Payout Ratio
HON
65.99%
UNP
45.41%

AI Verdict

HON BEARISH

Honeywell exhibits a stable but mediocre Piotroski F-Score of 4/9, while its current price of $219.97 represents a massive premium over its Graham Number ($58.42) and Intrinsic Value ($48.51). Despite a stellar 25-quarter track record of earnings beats, the company is currently facing a severe growth crisis with YoY earnings plummeting by 76.40% and Q/Q revenue dropping 32%. High leverage (Debt/Equity 2.37) and bearish insider activity further compound the risk of a significant price correction.

Strengths
Exceptional earnings track record with consistent beats over 25 quarters
Strong Return on Equity (ROE) of 26.14%
Healthy gross margins at 36.93%
Risks
Extreme overvaluation relative to Graham Number and Intrinsic Value
Severe contraction in growth metrics (YoY Earnings -76.40%)
High financial leverage with a Debt/Equity ratio of 2.37
UNP NEUTRAL

Union Pacific exhibits a stable but mediocre deterministic health profile with a Piotroski F-Score of 4/9 and a bearish technical trend. While the company maintains exceptional profitability metrics, including an ROE of 40.38% and operating margins of 40.89%, it is currently trading at a significant premium to both its Graham Number ($91.56) and Intrinsic Value ($205.88). The combination of stagnant revenue growth (-0.60% YoY) and a high PEG ratio (2.84) suggests that the current market price is pricing in growth that is not yet evident in the fundamentals.

Strengths
Exceptional Return on Equity (ROE) of 40.38%
Strong operating margins (40.89%) indicating high operational efficiency
Consistent earnings track record with 3 of the last 4 quarters beating estimates
Risks
Negative year-over-year revenue growth (-0.60%)
Significant overvaluation relative to book value (P/B of 8.01)
Liquidity concerns with a current ratio of 0.91 and quick ratio of 0.67

Compare Another Pair

HON vs UNP: Head-to-Head Comparison

This page compares Honeywell International Inc. (HON) and Union Pacific Corporation (UNP) across key fundamental metrics including valuation ratios, profitability margins, growth rates, financial health indicators, and dividend metrics. Each metric highlights the better-performing stock so you can quickly identify relative strengths and weaknesses.

Our AI engine independently analyzes each company's financials, competitive position, and market conditions to produce a verdict (Bullish, Neutral, or Bearish) along with key strengths and risks. Use this comparison alongside your own research to make informed investment decisions.

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