Graham Holdings Company (GHC) vs Honeywell International Inc. (HON)

Graham Holdings Company and Honeywell International Inc. are both Conglomerates companies. Honeywell International Inc. is the larger, with a market value of $69.3B against $5.0B — 14.0× the size. Honeywell International Inc. trades at the lower P/E: 8.4× against 9.3×. Honeywell International Inc. grew revenue faster over the last twelve months: 5.03% against 4.83%. Honeywell International Inc. has the higher net margin (21.6% vs 10.7%) and the higher return on invested capital (8.78% vs 3.64%). Both pay a dividend; Honeywell International Inc. yields more (3.91% vs 0.64%). Across the 23 metrics below, Honeywell International Inc. leads on 15 and Graham Holdings Company on 8.

Valuation

Metric GHC HON Conglomerates median
P/E 9.32 8.44 9.83
P/S 0.98 1.82 0.65
P/B 1.04 3.67 1.08
Price to free cash flow 20.10 17.13 15.10
EV/EBITDA 10.11 11.60 11.06
EV/Sales 0.91 2.41 1.27
Earnings yield 10.73% 11.85% 1.00%
Free cash flow yield 4.98% 5.84% 0.00%

Profitability

Metric GHC HON Conglomerates median
Gross margin 29.95% 36.51% 30.37%
Operating margin 5.05% 15.20% 3.36%
Net margin 10.69% 21.58% 0.52%
Free cash flow margin 4.89% 10.62% 0.00%
Return on equity 11.80% 46.27% 0.14%
Return on assets 6.88% 10.55% 0.00%
Return on invested capital 3.64% 8.78% 0.00%

Growth

Metric GHC HON Conglomerates median
Revenue growth (TTM) 4.83% 5.03% 5.03%
EPS growth (last fiscal year) (59.32%) (15.50%) 4.94%
Revenue growth, 5-year CAGR 11.20% 2.79% 6.01%
Net income growth, 5-year CAGR (0.54%) (0.21%) 0.00%

Health

Metric GHC HON Conglomerates median
Debt to equity 0.19 1.67 0.46
Current ratio 1.86 1.21 1.71
Net debt to EBITDA (1.24) 1.98 1.17

Dividend

Metric GHC HON Conglomerates median
Dividend yield 0.64% 3.91% 2.67%
Payout ratio 0.06 0.33 0.30

Size

Metric GHC HON Conglomerates median
Market cap 4.95b 69.29b 391.34m

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