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HON vs. TDG: Honeywell vs. TransDigm Stock Comparison

How do Honeywell (HON) and TransDigm (TDG) 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 TransDigm (TDG) both fall under the Capital Goods industry group, but HON is classified in Industrial Conglomerates while TDG is classified in Aerospace & Defense.

Company profile comparison for Honeywell (HON) and TransDigm (TDG)
Profile ItemHONTDG
NameHoneywell International Inc.TransDigm Group Inc.
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryIndustrial ConglomeratesAerospace & Defense
GICS Sub-IndustryIndustrial ConglomeratesAerospace & Defense
Market Capitalization69.74 billion USD66.17 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateJanuary 2, 1962March 15, 2006
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

HON
TDG
GSPC
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Honeywell (HON) vs. TransDigm (TDG), 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 Honeywell (HON) and TransDigm (TDG). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Honeywell (HON) and TransDigm (TDG)
MetricHONTDG
Total Return (1Y)14.14%-3.42%
Total Return (3Y, Annualized)9.90%14.26%
Total Return (5Y, Annualized)2.32%16.86%

Risk Profile

Drawdown History

HON
TDG
GSPC
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Honeywell (HON) vs. TransDigm (TDG), 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 Honeywell (HON) and TransDigm (TDG). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Honeywell (HON) and TransDigm (TDG)
MetricHONTDG
Volatility (1Y, Annualized)27.11%28.03%
Beta (5Y)0.800.94
Max Drawdown (5Y)-25.21%-29.05%
Avg. Volume (3M)2.82M369.72K

Risk-Adjusted Performance

Risk-Return Positioning

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HON and TDG 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 Honeywell (HON) and TransDigm (TDG)
MetricHONTDG
Sharpe Ratio (1Y)0.36-0.27
Sortino Ratio (1Y)0.52-0.38

Profitability

ROE (TTM)

Capital efficiency shows on one side only: Honeywell (HON) earns 44.39% on shareholders’ equity, ranked against its industry; TransDigm (TDG) has no ROE this period.

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%

TDG

Capital Goods industry group

--

Max
40.55%
Q3
19.29%
Median
12.12%
Q1
4.08%
Min
-17.12%
TDG
--
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Honeywell (HON) vs. TransDigm (TDG): TDG does not report ROE, so it has no value marker; HON is benchmarked against the Capital Goods industry group.

Net Margin (TTM)

For every dollar of sales, both Honeywell (HON) at 18.68% and TransDigm (TDG) at 21.28% 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%

TDG

Capital Goods industry group

21.28%

Max
27.47%
TDG
21.28%
Q3
12.10%
Median
6.30%
Q1
1.40%
Min
-12.89%
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Honeywell (HON) vs. TransDigm (TDG): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

TransDigm (TDG) at 46.01% turns sales into operating profit above its industry’s benchmark range, while Honeywell (HON) at 16.92% operates around its industry’s norm.

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%

TDG

Capital Goods industry group

46.01%

TDG
46.01%
Max
36.60%
Q3
18.33%
Median
11.12%
Q1
5.14%
Min
-12.63%
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Honeywell (HON) vs. TransDigm (TDG): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Honeywell (HON) and TransDigm (TDG)
MetricHONTDG
ROE (TTM)44.39%--
ROA (TTM)7.13%11.82%
Net Margin (TTM)18.68%21.28%
Operating Margin (TTM)16.92%46.01%
Gross Margin (TTM)37.21%59.82%

Growth

Revenue Growth

Both Honeywell (HON) at 7.85% and TransDigm (TDG) at 11.22% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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Honeywell (HON) vs. TransDigm (TDG): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Honeywell (HON) at -8.27% and TransDigm (TDG) at 25.21% land near their industries' usual EPS growth ranges, so bottom-line momentum looks broadly in line with peers on both sides.

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Honeywell (HON) vs. TransDigm (TDG): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Honeywell (HON) and TransDigm (TDG)
MetricHONTDG
Revenue Growth (YoY)7.85%11.22%
Revenue Growth (3Y CAGR)1.82%17.61%
EPS Growth (YoY)-8.27%25.21%
EPS Growth (3Y CAGR)3.20%33.78%

Financial Strength

Current Ratio (MRQ)

TransDigm (TDG) at 3.02 carries current ratio above its industry’s typical mid-range, while Honeywell (HON) at 0.96 runs in the tighter-liquidity quartile — different working-capital profiles, both worth examining.

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

TDG

Capital Goods industry group

3.02

Max
5.22
TDG
3.02
Q3
2.95
Median
2.08
Q1
1.43
Min
0.36
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Honeywell (HON) vs. TransDigm (TDG): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Only one side’s leverage can be read here: Honeywell (HON) carries debt-to-equity ratio of 0.76 against its industry range, while TransDigm (TDG) reports no figure this period.

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

TDG

Capital Goods industry group

--

Max
2.33
Q3
1.12
Median
0.60
Q1
0.29
Min
0.00
TDG
--
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Honeywell (HON) vs. TransDigm (TDG): TDG does not report debt-to-equity ratio, so it has no value marker; HON is benchmarked against the Capital Goods industry group.

Financial Strength Metrics

Financial strength metrics for Honeywell (HON) and TransDigm (TDG)
MetricHONTDG
Current Ratio (MRQ)0.963.02
Debt / Equity (MRQ)0.76--
Net Debt / EBITDA1.236.03

Dividends

Dividend Yield (TTM)

TransDigm (TDG) pays no dividend (yield 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Honeywell (HON) reports a yield of 3.63%, ranking against industry peers normally.

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%

TDG

Capital Goods industry group

0.00%

Max
2.66%
Q3
1.14%
Median
0.24%
TDG
0.00%
Q1
0.00%
Min
0.00%
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Honeywell (HON) vs. TransDigm (TDG): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

TransDigm (TDG) pays no dividend (payout 0.00%) — it may be reinvesting, using buybacks, or simply not returning cash through dividends. Meanwhile Honeywell (HON) reports a payout of 38.87%, ranking against industry peers normally.

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%

TDG

Capital Goods industry group

0.00%

Max
67.39%
Q3
28.02%
Median
6.86%
TDG
0.00%
Q1
0.00%
Min
0.00%
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Honeywell (HON) vs. TransDigm (TDG): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Honeywell (HON) and TransDigm (TDG)
MetricHONTDG
Dividend Yield (TTM)3.63%0.00%
Dividend Payout Ratio (TTM)38.87%0.00%

Valuation

P/E Ratio (TTM)

Honeywell (HON) at 10.91 sits in the cheaper P/E ratio quartile, while TransDigm (TDG) at 36.31 sits in the richer quartile — a clear split in what investors pay for each dollar of trailing earnings.

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

TDG

Capital Goods industry group

36.31

Max
59.38
TDG
36.31
Q3
35.92
Median
25.41
Q1
19.47
Min
3.03
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Honeywell (HON) vs. TransDigm (TDG): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

Honeywell (HON) at 1.85 is priced about in line with its industry on P/S ratio, while TransDigm (TDG) at 6.61 sits in the pricier quartile — TDG costs more per dollar of sales.

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

TDG

Capital Goods industry group

6.61

Max
7.54
TDG
6.61
Q3
3.76
Median
2.15
Q1
1.03
Min
0.03
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Honeywell (HON) vs. TransDigm (TDG): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

TransDigm (TDG) reports a negative P/B ratio of -6.74, meaning negative book equity — the multiple itself is not meaningful for valuation. Meanwhile Honeywell (HON) reports 3.12, ranking against industry peers normally.

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

TDG

Capital Goods industry group

-6.74

Max
9.66
Q3
5.00
Median
3.12
Q1
1.81
Min
-1.08
TDG
-6.74
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Honeywell (HON) vs. TransDigm (TDG): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Honeywell (HON) and TransDigm (TDG)
MetricHONTDG
P/E Ratio (TTM)10.9136.31
P/S Ratio (TTM)1.856.61
P/B Ratio (MRQ)3.12-6.74
Free Cash Flow Yield (TTM)10.07%2.20%