AIT vs. HON: Applied Industrial vs. Honeywell Stock Comparison

November 11, 2026

How do Applied Industrial (AIT) and Honeywell (HON) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Applied Industrial (AIT) and Honeywell (HON) both fall under the Capital Goods industry group, but AIT is classified in Trading Companies & Distributors while HON is classified in Industrial Conglomerates.

Company profile comparison for Applied Industrial (AIT) and Honeywell (HON)
Profile Item	AIT	HON
Name	Applied Industrial Technologies Inc.	Honeywell International Inc.
Country/Region	United States	United States
GICS Sector	Industrials	Industrials
GICS Industry Group	Capital Goods	Capital Goods
GICS Industry	Trading Companies & Distributors	Industrial Conglomerates
GICS Sub-Industry	Trading Companies & Distributors	Industrial Conglomerates
Market Capitalization	10.35 billion USD	69.74 billion USD
Currency	USD	USD
Exchange	NYSE	Nasdaq
Listing Date	March 17, 1980	January 2, 1962
Security Type	Common Stock	Common Stock

Price Performance

Cumulative Growth

AIT

HON

GSPC

Applied Industrial (AIT) vs. Honeywell (HON), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Applied Industrial (AIT) and Honeywell (HON). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Applied Industrial (AIT) and Honeywell (HON). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Applied Industrial (AIT) and Honeywell (HON)
Metric	AIT	HON
Total Return (1Y)	15.62%	14.14%
Total Return (3Y, Annualized)	24.49%	9.90%
Total Return (5Y, Annualized)	24.56%	2.32%

Risk Profile

Drawdown History

AIT

HON

GSPC

Applied Industrial (AIT) vs. Honeywell (HON), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Applied Industrial (AIT) and Honeywell (HON). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Applied Industrial (AIT) and Honeywell (HON)
Metric	AIT	HON
Volatility (1Y, Annualized)	28.72%	27.11%
Beta (5Y)	0.86	0.80
Max Drawdown (5Y)	-26.42%	-25.21%
Avg. Volume (3M)	295.41K	2.82M

Risk-Adjusted Performance

Risk-Return Positioning

AIT and HON are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Applied Industrial (AIT) and Honeywell (HON)
Metric	AIT	HON
Sharpe Ratio (1Y)	0.39	0.36
Sortino Ratio (1Y)	0.53	0.52

Profitability

ROE (TTM)

Both companies show strong equity returns, but Honeywell (HON) at 44.39% is the standout with ROE above its industry range; Applied Industrial (AIT) at 22.51% also sits in the top quartile.

AIT

Capital Goods industry group

22.51%

Max: 40.55%
AIT: 22.51%
Q3: 19.29%
Median: 12.12%
Q1: 4.08%
Min: -17.12%

HON

Capital Goods industry group

44.39%

HON: 44.39%
Max: 40.55%
Q3: 19.29%
Median: 12.12%
Q1: 4.08%
Min: -17.12%

Applied Industrial (AIT) vs. Honeywell (HON): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

Honeywell (HON) at 18.68% retains a top-quartile share of revenue as profit, ahead of Applied Industrial (AIT) at 8.39%, which keeps about the industry-typical share.

AIT

Capital Goods industry group

8.39%

Max: 27.47%
Q3: 12.10%
AIT: 8.39%
Median: 6.30%
Q1: 1.40%
Min: -12.89%

HON

Capital Goods industry group

18.68%

Max: 27.47%
HON: 18.68%
Q3: 12.10%
Median: 6.30%
Q1: 1.40%
Min: -12.89%

Applied Industrial (AIT) vs. Honeywell (HON): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Both Applied Industrial (AIT) at 11.12% and Honeywell (HON) at 16.92% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

AIT

Capital Goods industry group

11.12%

Max: 36.60%
Q3: 18.33%
AIT: 11.12%
Median: 11.12%
Q1: 5.14%
Min: -12.63%

HON

Capital Goods industry group

16.92%

Max: 36.60%
Q3: 18.33%
HON: 16.92%
Median: 11.12%
Q1: 5.14%
Min: -12.63%

Applied Industrial (AIT) vs. Honeywell (HON): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Applied Industrial (AIT) and Honeywell (HON)
Metric	AIT	HON
ROE (TTM)	22.51%	44.39%
ROA (TTM)	11.43%	7.13%
Net Margin (TTM)	8.39%	18.68%
Operating Margin (TTM)	11.12%	16.92%
Gross Margin (TTM)	30.40%	37.21%

Growth

Revenue Growth

Both Applied Industrial (AIT) at 8.84% and Honeywell (HON) at 7.85% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

Applied Industrial (AIT) vs. Honeywell (HON): A comparison of their Revenue Growth across different time periods.

EPS Growth

Only one side can be read here: Honeywell (HON) reports EPS growth of -8.27%, ranked against its industry; Applied Industrial (AIT) has no EPS growth figure this period.

Applied Industrial (AIT) vs. Honeywell (HON): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Applied Industrial (AIT) and Honeywell (HON)
Metric	AIT	HON
Revenue Growth (YoY)	8.84%	7.85%
Revenue Growth (3Y CAGR)	4.02%	1.82%
EPS Growth (YoY)	--	-8.27%
EPS Growth (3Y CAGR)	7.40%	3.20%

Financial Strength

Current Ratio (MRQ)

Applied Industrial (AIT) at 2.89 keeps current ratio within its industry’s typical mid-range, while Honeywell (HON) at 0.96 runs in the tighter-liquidity quartile — a thinner cushion against current liabilities for HON.

AIT

Capital Goods industry group

2.89

Max: 5.22
Q3: 2.95
AIT: 2.89
Median: 2.08
Q1: 1.43
Min: 0.36

HON

Capital Goods industry group

0.96

Max: 5.22
Q3: 2.95
Median: 2.08
Q1: 1.43
HON: 0.96
Min: 0.36

Applied Industrial (AIT) vs. Honeywell (HON): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Applied Industrial (AIT) at 0.15 keeps leverage in the lower industry quartile, while Honeywell (HON) at 0.76 runs a more typical debt-to-equity mix.

AIT

Capital Goods industry group

0.15

Max: 2.33
Q3: 1.12
Median: 0.60
Q1: 0.29
AIT: 0.15
Min: 0.00

HON

Capital Goods industry group

0.76

Max: 2.33
Q3: 1.12
HON: 0.76
Median: 0.60
Q1: 0.29
Min: 0.00

Applied Industrial (AIT) vs. Honeywell (HON): A comparison of their debt-to-equity ratio against the Capital Goods industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Applied Industrial (AIT) and Honeywell (HON)
Metric	AIT	HON
Current Ratio (MRQ)	2.89	0.96
Debt / Equity (MRQ)	0.15	0.76
Net Debt / EBITDA	0.27	1.23

Dividends

Dividend Yield (TTM)

Applied Industrial (AIT) at 0.71% pays an industry-typical yield; Honeywell (HON) at 3.63% is above its entire peer range — the higher number, but one that calls for a look at payout sustainability before treating it as an advantage.

AIT

Capital Goods industry group

0.71%

Max: 2.66%
Q3: 1.14%
AIT: 0.71%
Median: 0.24%
Q1: 0.00%
Min: 0.00%

HON

Capital Goods industry group

3.63%

HON: 3.63%
Max: 2.66%
Q3: 1.14%
Median: 0.24%
Q1: 0.00%
Min: 0.00%

Applied Industrial (AIT) vs. Honeywell (HON): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Applied Industrial (AIT) at 17.63% pays out a band-typical share of earnings, while Honeywell (HON) at 38.87% distributes more than its industry norm — less retained, thinner cover.

AIT

Capital Goods industry group

17.63%

Max: 67.39%
Q3: 28.02%
AIT: 17.63%
Median: 6.86%
Q1: 0.00%
Min: 0.00%

HON

Capital Goods industry group

38.87%

Max: 67.39%
HON: 38.87%
Q3: 28.02%
Median: 6.86%
Q1: 0.00%
Min: 0.00%

Applied Industrial (AIT) vs. Honeywell (HON): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Applied Industrial (AIT) and Honeywell (HON)
Metric	AIT	HON
Dividend Yield (TTM)	0.71%	3.63%
Dividend Payout Ratio (TTM)	17.63%	38.87%

Valuation

P/E Ratio (TTM)

Honeywell (HON) at 10.91 sits in the cheaper P/E ratio quartile, while Applied Industrial (AIT) at 25.10 is closer to its industry’s usual earnings multiple — a discount for HON, though growth and earnings durability still matter.

AIT

Capital Goods industry group

25.10

Max: 59.38
Q3: 35.92
Median: 25.41
AIT: 25.10
Q1: 19.47
Min: 3.03

HON

Capital Goods industry group

10.91

Max: 59.38
Q3: 35.92
Median: 25.41
Q1: 19.47
HON: 10.91
Min: 3.03

Applied Industrial (AIT) vs. Honeywell (HON): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Applied Industrial (AIT) at 2.05 and Honeywell (HON) at 1.85 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.

AIT

Capital Goods industry group

2.05

Max: 7.54
Q3: 3.76
Median: 2.15
AIT: 2.05
Q1: 1.03
Min: 0.03

HON

Capital Goods industry group

1.85

Max: 7.54
Q3: 3.76
Median: 2.15
HON: 1.85
Q1: 1.03
Min: 0.03

Applied Industrial (AIT) vs. Honeywell (HON): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

Honeywell (HON) at 3.12 is valued about in line with its industry on P/B ratio, while Applied Industrial (AIT) at 5.50 carries an above-peer premium to book — AIT is pricier on assets.

AIT

Capital Goods industry group

5.50

Max: 9.66
AIT: 5.50
Q3: 5.00
Median: 3.12
Q1: 1.81
Min: -1.08

HON

Capital Goods industry group

3.12

Max: 9.66
Q3: 5.00
HON: 3.12
Median: 3.12
Q1: 1.81
Min: -1.08

Applied Industrial (AIT) vs. Honeywell (HON): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Applied Industrial (AIT) and Honeywell (HON)
Metric	AIT	HON
P/E Ratio (TTM)	25.10	10.91
P/S Ratio (TTM)	2.05	1.85
P/B Ratio (MRQ)	5.50	3.12
Free Cash Flow Yield (TTM)	3.24%	10.07%