AVAV vs. HON: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at AVAV and HON, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.
Company Overview
HON’s market capitalization of 154.50 billion USD is significantly greater than AVAV’s 11.24 billion USD, highlighting its more substantial market valuation.
With betas of 0.81 for AVAV and 1.07 for HON, both stocks show similar sensitivity to overall market movements.
| Symbol | AVAV | HON |
|---|---|---|
| Company Name | AeroVironment, Inc. | Honeywell International Inc. |
| Country | US | US |
| Sector | Industrials | Industrials |
| Industry | Aerospace & Defense | Conglomerates |
| CEO | Wahid Nawabi | Vimal M. Kapur |
| Price | 246.23 USD | 240.4 USD |
| Market Cap | 11.24 billion USD | 154.50 billion USD |
| Beta | 0.81 | 1.07 |
| Exchange | NASDAQ | NASDAQ |
| IPO Date | January 23, 2007 | February 21, 2001 |
| ADR | No | No |
Historical Performance
This chart compares the performance of AVAV and HON by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period.
Data is adjusted for dividends and splits.
Profitability
Return on Equity
AVAV
5.06%
Aerospace & Defense Industry
- Max
- 42.57%
- Q3
- 16.67%
- Median
- 8.39%
- Q1
- -0.77%
- Min
- -23.36%
AVAV’s Return on Equity of 5.06% is on par with the norm for the Aerospace & Defense industry, indicating its profitability relative to shareholder equity is typical for the sector.
HON
32.32%
Conglomerates Industry
- Max
- 32.32%
- Q3
- 19.13%
- Median
- 1.34%
- Q1
- -7.64%
- Min
- -24.88%
In the upper quartile for the Conglomerates industry, HON’s Return on Equity of 32.32% signals a highly effective use of shareholder capital to drive profitability compared to most of its peers.
Return on Invested Capital
AVAV
4.16%
Aerospace & Defense Industry
- Max
- 23.42%
- Q3
- 8.86%
- Median
- 5.47%
- Q1
- -5.60%
- Min
- -22.46%
AVAV’s Return on Invested Capital of 4.16% is in line with the norm for the Aerospace & Defense industry, reflecting a standard level of efficiency in generating profits from its capital base.
HON
10.56%
Conglomerates Industry
- Max
- 14.84%
- Q3
- 10.21%
- Median
- 2.12%
- Q1
- -1.56%
- Min
- -8.42%
In the upper quartile for the Conglomerates industry, HON’s Return on Invested Capital of 10.56% signifies a highly effective use of its capital to generate profits when compared to its peers.
Net Profit Margin
AVAV
5.54%
Aerospace & Defense Industry
- Max
- 22.67%
- Q3
- 8.04%
- Median
- 4.95%
- Q1
- -5.07%
- Min
- -16.58%
AVAV’s Net Profit Margin of 5.54% is aligned with the median group of its peers in the Aerospace & Defense industry. This indicates its ability to convert revenue into profit is typical for the sector.
HON
14.51%
Conglomerates Industry
- Max
- 17.79%
- Q3
- 8.39%
- Median
- 0.20%
- Q1
- -6.01%
- Min
- -15.20%
A Net Profit Margin of 14.51% places HON in the upper quartile for the Conglomerates industry, signifying strong profitability and more effective cost management than most of its peers.
Operating Profit Margin
AVAV
5.18%
Aerospace & Defense Industry
- Max
- 22.01%
- Q3
- 11.49%
- Median
- 8.96%
- Q1
- 3.77%
- Min
- -4.96%
AVAV’s Operating Profit Margin of 5.18% is around the midpoint for the Aerospace & Defense industry, indicating that its efficiency in managing core business operations is typical for the sector.
HON
20.46%
Conglomerates Industry
- Max
- 20.46%
- Q3
- 13.14%
- Median
- 4.91%
- Q1
- -3.97%
- Min
- -12.21%
An Operating Profit Margin of 20.46% places HON in the upper quartile for the Conglomerates industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.
Profitability at a Glance
| Symbol | AVAV | HON |
|---|---|---|
| Return on Equity (TTM) | 5.06% | 32.32% |
| Return on Assets (TTM) | 3.89% | 7.57% |
| Return on Invested Capital (TTM) | 4.16% | 10.56% |
| Net Profit Margin (TTM) | 5.54% | 14.51% |
| Operating Profit Margin (TTM) | 5.18% | 20.46% |
| Gross Profit Margin (TTM) | 40.23% | 38.11% |
Financial Strength
Current Ratio
AVAV
3.52
Aerospace & Defense Industry
- Max
- 5.13
- Q3
- 3.36
- Median
- 2.16
- Q1
- 1.20
- Min
- 0.41
AVAV’s Current Ratio of 3.52 is in the upper quartile for the Aerospace & Defense industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
HON
1.25
Conglomerates Industry
- Max
- 4.07
- Q3
- 2.46
- Median
- 1.62
- Q1
- 1.05
- Min
- 0.85
HON’s Current Ratio of 1.25 aligns with the median group of the Conglomerates industry, indicating that its short-term liquidity is in line with its sector peers.
Debt-to-Equity Ratio
AVAV
0.04
Aerospace & Defense Industry
- Max
- 1.20
- Q3
- 0.73
- Median
- 0.51
- Q1
- 0.09
- Min
- 0.00
Falling into the lower quartile for the Aerospace & Defense industry, AVAV’s Debt-to-Equity Ratio of 0.04 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.
HON
1.88
Conglomerates Industry
- Max
- 3.15
- Q3
- 1.88
- Median
- 1.37
- Q1
- 0.53
- Min
- 0.08
HON’s Debt-to-Equity Ratio of 1.88 is typical for the Conglomerates industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.
Interest Coverage Ratio
AVAV
245.75
Aerospace & Defense Industry
- Max
- 12.62
- Q3
- 7.38
- Median
- 2.95
- Q1
- 1.68
- Min
- -6.68
With an Interest Coverage Ratio of 245.75, AVAV demonstrates a superior capacity to service its debt, placing it well above the typical range for the Aerospace & Defense industry. This stems from either robust earnings or a conservative debt load.
HON
7.14
Conglomerates Industry
- Max
- 9.89
- Q3
- 4.13
- Median
- 2.19
- Q1
- -0.55
- Min
- -0.55
HON’s Interest Coverage Ratio of 7.14 is in the upper quartile for the Conglomerates industry, signifying a strong and healthy capacity to meet its interest payments from operating profits.
Financial Strength at a Glance
| Symbol | AVAV | HON |
|---|---|---|
| Current Ratio (TTM) | 3.52 | 1.25 |
| Quick Ratio (TTM) | 2.69 | 0.95 |
| Debt-to-Equity Ratio (TTM) | 0.04 | 1.88 |
| Debt-to-Asset Ratio (TTM) | 0.03 | 0.44 |
| Net Debt-to-EBITDA Ratio (TTM) | -0.11 | 2.43 |
| Interest Coverage Ratio (TTM) | 245.75 | 7.14 |
Growth
The following charts compare key year-over-year (YoY) growth metrics for AVAV and HON. These metrics are based on the companies’ annual financial reports.
Revenue Growth
Earnings Per Share (EPS) Growth
Free Cash Flow Growth
Dividend
Dividend Yield
AVAV
0.00%
Aerospace & Defense Industry
- Max
- 6.00%
- Q3
- 0.66%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AVAV currently does not pay a dividend, resulting in a yield of 0%. This is a common strategy for growth-focused companies that prioritize reinvesting earnings, though it may be less typical in mature, income-oriented sectors.
HON
1.86%
Conglomerates Industry
- Max
- 30.53%
- Q3
- 8.27%
- Median
- 1.92%
- Q1
- 0.96%
- Min
- 0.00%
HON’s Dividend Yield of 1.86% is consistent with its peers in the Conglomerates industry, providing a dividend return that is standard for its sector.
Dividend Payout Ratio
AVAV
0.00%
Aerospace & Defense Industry
- Max
- 172.02%
- Q3
- 32.47%
- Median
- 0.00%
- Q1
- 0.00%
- Min
- 0.00%
AVAV has a Dividend Payout Ratio of 0%, indicating it does not currently pay a dividend. This is a common strategy for growth-oriented companies that reinvest all profits back into the business.
HON
51.50%
Conglomerates Industry
- Max
- 1,392.58%
- Q3
- 51.50%
- Median
- 35.38%
- Q1
- 13.88%
- Min
- 0.00%
HON’s Dividend Payout Ratio of 51.50% is within the typical range for the Conglomerates industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | AVAV | HON |
|---|---|---|
| Dividend Yield (TTM) | 0.00% | 1.86% |
| Dividend Payout Ratio (TTM) | 0.00% | 51.50% |
Valuation
Price-to-Earnings Ratio
AVAV
158.45
Aerospace & Defense Industry
- Max
- 75.34
- Q3
- 54.40
- Median
- 38.63
- Q1
- 26.10
- Min
- 16.44
At 158.45, AVAV’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Aerospace & Defense industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
HON
27.38
Conglomerates Industry
- Max
- 63.95
- Q3
- 37.12
- Median
- 22.66
- Q1
- 17.80
- Min
- 12.89
HON’s P/E Ratio of 27.38 is within the middle range for the Conglomerates industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.
Forward P/E to Growth Ratio
AVAV
4.65
Aerospace & Defense Industry
- Max
- 10.68
- Q3
- 5.36
- Median
- 2.31
- Q1
- 1.47
- Min
- 0.01
AVAV’s Forward PEG Ratio of 4.65 is within the middle range of its peers in the Aerospace & Defense industry. This suggests a reasonable balance between the stock’s price and its expected growth, aligning with sector valuation norms.
HON
3.58
Conglomerates Industry
- Max
- 3.39
- Q3
- 2.48
- Median
- 1.54
- Q1
- 1.36
- Min
- 0.00
HON’s Forward PEG Ratio of 3.58 is exceptionally high for the Conglomerates industry. This suggests its stock price is very high relative to its expected earnings growth, signaling significant overvaluation risk.
Price-to-Sales Ratio
AVAV
14.27
Aerospace & Defense Industry
- Max
- 19.34
- Q3
- 9.54
- Median
- 2.71
- Q1
- 1.59
- Min
- 0.35
AVAV’s P/S Ratio of 14.27 is in the upper echelon for the Aerospace & Defense industry. This means the company is valued richly on its revenue stream compared to its peers, suggesting the stock is priced for a high level of future performance.
HON
3.94
Conglomerates Industry
- Max
- 3.75
- Q3
- 1.98
- Median
- 0.99
- Q1
- 0.45
- Min
- 0.06
With a P/S Ratio of 3.94, HON trades at a valuation that eclipses even the highest in the Conglomerates industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
Price-to-Book Ratio
AVAV
7.80
Aerospace & Defense Industry
- Max
- 16.08
- Q3
- 8.12
- Median
- 4.12
- Q1
- 2.69
- Min
- 0.69
AVAV’s P/B Ratio of 7.80 is within the conventional range for the Aerospace & Defense industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.
HON
8.92
Conglomerates Industry
- Max
- 8.49
- Q3
- 4.09
- Median
- 1.23
- Q1
- 0.97
- Min
- 0.36
At 8.92, HON’s P/B Ratio is at an extreme premium to the Conglomerates industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.
Valuation at a Glance
| Symbol | AVAV | HON |
|---|---|---|
| Price-to-Earnings Ratio (P/E, TTM) | 158.45 | 27.38 |
| Forward PEG Ratio (TTM) | 4.65 | 3.58 |
| Price-to-Sales Ratio (P/S, TTM) | 14.27 | 3.94 |
| Price-to-Book Ratio (P/B, TTM) | 7.80 | 8.92 |
| Price-to-Free Cash Flow Ratio (P/FCF, TTM) | -821.15 | 30.51 |
| EV-to-EBITDA (TTM) | 188.22 | 18.60 |
| EV-to-Sales (TTM) | 14.26 | 4.53 |