Brookfield Business Partners L.P. (BBUC) vs Honeywell International Inc. (HON)

Brookfield Business Partners L.P. and Honeywell International Inc. are both Conglomerates companies. Honeywell International Inc. is the larger, with a market value of $65.5B against $5.4B — 12.1× the size. Brookfield Business Partners L.P. has negative trailing earnings, so its P/E is not meaningful; Honeywell International Inc. trades at 8.0×. Honeywell International Inc. grew revenue faster over the last twelve months: 11.0% against −10.5%. Honeywell International Inc. has the higher net margin (21.6% vs −0.20%) and the higher return on invested capital (8.78% vs 4.68%). Both pay a dividend; Honeywell International Inc. yields more (3.77% vs 3.05%). Across the 22 metrics below, Honeywell International Inc. leads on 12 and Brookfield Business Partners L.P. on 10.

Valuation

Metric BBUC HON Conglomerates median
P/E n/m 8.00 17.97
P/S 0.20 1.73 0.85
P/B 0.37 3.49 1.50
Price to free cash flow 12.17 16.31 12.94
EV/EBITDA 6.31 11.17 11.24
EV/Sales 1.69 2.32 1.29
Earnings yield (1.46%) 12.50% 0.33%
Free cash flow yield 8.22% 6.13% (0.73%)

Profitability

Metric BBUC HON Conglomerates median
Gross margin 19.71% 36.51% 33.55%
Operating margin 15.43% 15.20% 2.86%
Net margin (0.20%) 21.58% 0.49%
Free cash flow margin 1.68% 10.62% (0.47%)
Return on equity (0.38%) 46.27% 0.27%
Return on assets (0.07%) 10.55% 0.00%
Return on invested capital 4.68% 8.78% 1.29%

Growth

Metric BBUC HON Conglomerates median
Revenue growth (TTM) (10.49%) 11.01% 8.17%
EPS growth (last fiscal year) 40.00% (8.27%) (8.46%)
Revenue growth, 5-year CAGR (6.11%) 2.79% 6.01%
Net income growth, 5-year CAGR 0.00% (0.21%) 0.00%

Health

Metric BBUC HON Conglomerates median
Debt to equity 2.90 1.67 0.51
Current ratio 1.44 1.21 1.77
Net debt to EBITDA 5.42 1.98 1.29

Dividend

Metric BBUC HON Conglomerates median
Dividend yield 3.05% 3.77% 3.05%
Payout ratio — 0.30 0.30

Size

Metric BBUC HON Conglomerates median
Market cap 5.39b 65.48b 470.57m

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