HON vs. LECO: Honeywell vs. Lincoln Electric Stock Comparison
How do Honeywell (HON) and Lincoln Electric (LECO) 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
Honeywell (HON) and Lincoln Electric (LECO) both fall under the Capital Goods industry group, but HON is classified in Industrial Conglomerates while LECO is classified in Machinery.
| Profile Item | HON | LECO |
|---|---|---|
| Name | Honeywell International Inc. | Lincoln Electric Holdings, Inc. |
| Country/Region | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry Group | Capital Goods | Capital Goods |
| GICS Industry | Industrial Conglomerates | Machinery |
| GICS Sub-Industry | Industrial Conglomerates | Industrial Machinery & Supplies & Components |
| Market Capitalization | 69.74 billion USD | 14.91 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | Nasdaq |
| Listing Date | January 2, 1962 | April 7, 1994 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | HON | LECO |
|---|---|---|
| Total Return (1Y) | 14.14% | 27.30% |
| Total Return (3Y, Annualized) | 9.90% | 17.31% |
| Total Return (5Y, Annualized) | 2.32% | 16.33% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | HON | LECO |
|---|---|---|
| Volatility (1Y, Annualized) | 27.11% | 31.13% |
| Beta (5Y) | 0.80 | 1.17 |
| Max Drawdown (5Y) | -25.21% | -34.29% |
| Avg. Volume (3M) | 2.82M | 409.99K |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | HON | LECO |
|---|---|---|
| Sharpe Ratio (1Y) | 0.36 | 0.74 |
| Sortino Ratio (1Y) | 0.52 | 1.11 |
Profitability
ROE (TTM)
Both companies show strong equity returns, but Honeywell (HON) at 44.39% is the standout with ROE above its industry range; Lincoln Electric (LECO) at 38.75% also sits in the top quartile.
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%
LECO
Capital Goods industry group
38.75%
- Max
- 40.55%
- LECO
- 38.75%
- Q3
- 19.29%
- Median
- 12.12%
- Q1
- 4.08%
- Min
- -17.12%
Net Margin (TTM)
For every dollar of sales, both Honeywell (HON) at 18.68% and Lincoln Electric (LECO) at 12.40% retain more as net profit than most peers, landing in the top net margin quartile of their industries.
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%
LECO
Capital Goods industry group
12.40%
- Max
- 27.47%
- LECO
- 12.40%
- Q3
- 12.10%
- Median
- 6.30%
- Q1
- 1.40%
- Min
- -12.89%
Operating Margin (TTM)
Both Honeywell (HON) at 16.92% and Lincoln Electric (LECO) at 18.29% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.
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%
LECO
Capital Goods industry group
18.29%
- Max
- 36.60%
- Q3
- 18.33%
- LECO
- 18.29%
- Median
- 11.12%
- Q1
- 5.14%
- Min
- -12.63%
Profitability Metrics
| Metric | HON | LECO |
|---|---|---|
| ROE (TTM) | 44.39% | 38.75% |
| ROA (TTM) | 7.13% | 13.32% |
| Net Margin (TTM) | 18.68% | 12.40% |
| Operating Margin (TTM) | 16.92% | 18.29% |
| Gross Margin (TTM) | 37.21% | 35.54% |
Growth
Revenue Growth
Both Honeywell (HON) at 7.85% and Lincoln Electric (LECO) at 5.60% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.
EPS Growth
Both Honeywell (HON) at -8.27% and Lincoln Electric (LECO) at 14.36% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.
Growth Metrics
| Metric | HON | LECO |
|---|---|---|
| Revenue Growth (YoY) | 7.85% | 5.60% |
| Revenue Growth (3Y CAGR) | 1.82% | 4.02% |
| EPS Growth (YoY) | -8.27% | 14.36% |
| EPS Growth (3Y CAGR) | 3.20% | 5.05% |
Financial Strength
Current Ratio (MRQ)
Lincoln Electric (LECO) at 1.91 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.
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
LECO
Capital Goods industry group
1.91
- Max
- 5.22
- Q3
- 2.95
- Median
- 2.08
- LECO
- 1.91
- Q1
- 1.43
- Min
- 0.36
Debt / Equity (MRQ)
Both Honeywell (HON) at 0.76 and Lincoln Electric (LECO) at 0.78 fund their balance sheets with roughly industry-typical debt-to-equity mixes.
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
LECO
Capital Goods industry group
0.78
- Max
- 2.33
- Q3
- 1.12
- LECO
- 0.78
- Median
- 0.60
- Q1
- 0.29
- Min
- 0.00
Financial Strength Metrics
| Metric | HON | LECO |
|---|---|---|
| Current Ratio (MRQ) | 0.96 | 1.91 |
| Debt / Equity (MRQ) | 0.76 | 0.78 |
| Net Debt / EBITDA | 1.23 | 1.00 |
Dividends
Dividend Yield (TTM)
Lincoln Electric (LECO) at 1.16% earns its spot in the top quartile of its industry’s yields; Honeywell (HON) at 3.63% is past the top of its own peer range — territory where a dividend-safety check matters more than the headline number.
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%
LECO
Capital Goods industry group
1.16%
- Max
- 2.66%
- LECO
- 1.16%
- Q3
- 1.14%
- Median
- 0.24%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Both Honeywell (HON) at 38.87% and Lincoln Electric (LECO) at 30.30% pay out an above-typical share of earnings for their industries, leaving thinner cover if profits dip.
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%
LECO
Capital Goods industry group
30.30%
- Max
- 67.39%
- LECO
- 30.30%
- Q3
- 28.02%
- Median
- 6.86%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | HON | LECO |
|---|---|---|
| Dividend Yield (TTM) | 3.63% | 1.16% |
| Dividend Payout Ratio (TTM) | 38.87% | 30.30% |
Valuation
P/E Ratio (TTM)
Honeywell (HON) at 10.91 sits in the cheaper P/E ratio quartile, while Lincoln Electric (LECO) at 26.40 is closer to its industry’s usual earnings multiple — a discount for HON, though growth and earnings durability still matter.
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
LECO
Capital Goods industry group
26.40
- Max
- 59.38
- Q3
- 35.92
- LECO
- 26.40
- Median
- 25.41
- Q1
- 19.47
- Min
- 3.03
P/S Ratio (TTM)
On P/S ratio, both Honeywell (HON) at 1.85 and Lincoln Electric (LECO) at 3.21 are priced roughly in line with their industries — neither looks cheap nor rich on a sales basis.
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
LECO
Capital Goods industry group
3.21
- Max
- 7.54
- Q3
- 3.76
- LECO
- 3.21
- Median
- 2.15
- Q1
- 1.03
- Min
- 0.03
P/B Ratio (MRQ)
Honeywell (HON) at 3.12 is valued about in line with its industry on P/B ratio, while Lincoln Electric (LECO) at 9.59 carries an above-peer premium to book — LECO is pricier on assets.
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
LECO
Capital Goods industry group
9.59
- Max
- 9.66
- LECO
- 9.59
- Q3
- 5.00
- Median
- 3.12
- Q1
- 1.81
- Min
- -1.08
Valuation Metrics
| Metric | HON | LECO |
|---|---|---|
| P/E Ratio (TTM) | 10.91 | 26.40 |
| P/S Ratio (TTM) | 1.85 | 3.21 |
| P/B Ratio (MRQ) | 3.12 | 9.59 |
| Free Cash Flow Yield (TTM) | 10.07% | 2.68% |