HON vs. TXT: Honeywell vs. Textron Stock Comparison
How do Honeywell (HON) and Textron (TXT) 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 Textron (TXT) both fall under the Capital Goods industry group, but HON is classified in Industrial Conglomerates while TXT is classified in Aerospace & Defense.
| Profile Item | HON | TXT |
|---|---|---|
| Name | Honeywell International Inc. | Textron Inc. |
| Country/Region | United States | United States |
| GICS Sector | Industrials | Industrials |
| GICS Industry Group | Capital Goods | Capital Goods |
| GICS Industry | Industrial Conglomerates | Aerospace & Defense |
| GICS Sub-Industry | Industrial Conglomerates | Aerospace & Defense |
| Market Capitalization | 69.74 billion USD | 14.15 billion USD |
| Currency | USD | USD |
| Exchange | Nasdaq | NYSE |
| Listing Date | January 2, 1962 | February 21, 1973 |
| Security Type | Common Stock | Common Stock |
Price Performance
Cumulative Growth
Trailing Returns
Calendar-Year Returns
Performance Metrics
| Metric | HON | TXT |
|---|---|---|
| Total Return (1Y) | 14.14% | 3.94% |
| Total Return (3Y, Annualized) | 9.90% | 4.49% |
| Total Return (5Y, Annualized) | 2.32% | 2.30% |
Risk Profile
Drawdown History
Return Distribution
Risk Metrics
| Metric | HON | TXT |
|---|---|---|
| Volatility (1Y, Annualized) | 27.11% | 29.18% |
| Beta (5Y) | 0.80 | 0.87 |
| Max Drawdown (5Y) | -25.21% | -37.33% |
| Avg. Volume (3M) | 2.82M | 1.72M |
Risk-Adjusted Performance
Risk-Return Positioning
Risk-Adjusted Metrics
| Metric | HON | TXT |
|---|---|---|
| Sharpe Ratio (1Y) | 0.36 | -0.01 |
| Sortino Ratio (1Y) | 0.52 | -0.02 |
Profitability
ROE (TTM)
Honeywell (HON) at 44.39% clears its industry range for ROE, a sharper capital-efficiency signal than Textron (TXT) at 12.48%, which is closer to a typical peer reading.
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%
TXT
Capital Goods industry group
12.48%
- Max
- 40.55%
- Q3
- 19.29%
- TXT
- 12.48%
- Median
- 12.12%
- Q1
- 4.08%
- Min
- -17.12%
Net Margin (TTM)
Honeywell (HON) at 18.68% retains a top-quartile share of revenue as profit, ahead of Textron (TXT) at 6.30%, which keeps about the industry-typical share.
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%
TXT
Capital Goods industry group
6.30%
- Max
- 27.47%
- Q3
- 12.10%
- TXT
- 6.30%
- Median
- 6.30%
- Q1
- 1.40%
- Min
- -12.89%
Operating Margin (TTM)
Both Honeywell (HON) at 16.92% and Textron (TXT) at 9.33% 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%
TXT
Capital Goods industry group
9.33%
- Max
- 36.60%
- Q3
- 18.33%
- Median
- 11.12%
- TXT
- 9.33%
- Q1
- 5.14%
- Min
- -12.63%
Profitability Metrics
| Metric | HON | TXT |
|---|---|---|
| ROE (TTM) | 44.39% | 12.48% |
| ROA (TTM) | 7.13% | 4.51% |
| Net Margin (TTM) | 18.68% | 6.30% |
| Operating Margin (TTM) | 16.92% | 9.33% |
| Gross Margin (TTM) | 37.21% | 17.53% |
Growth
Revenue Growth
Both Honeywell (HON) at 7.85% and Textron (TXT) at 8.01% 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 Textron (TXT) at 18.02% 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 | TXT |
|---|---|---|
| Revenue Growth (YoY) | 7.85% | 8.01% |
| Revenue Growth (3Y CAGR) | 1.82% | 4.77% |
| EPS Growth (YoY) | -8.27% | 18.02% |
| EPS Growth (3Y CAGR) | 3.20% | 8.42% |
Financial Strength
Current Ratio (MRQ)
Textron (TXT) at 1.80 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
TXT
Capital Goods industry group
1.80
- Max
- 5.22
- Q3
- 2.95
- Median
- 2.08
- TXT
- 1.80
- Q1
- 1.43
- Min
- 0.36
Debt / Equity (MRQ)
Both Honeywell (HON) at 0.76 and Textron (TXT) at 0.52 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
TXT
Capital Goods industry group
0.52
- Max
- 2.33
- Q3
- 1.12
- Median
- 0.60
- TXT
- 0.52
- Q1
- 0.29
- Min
- 0.00
Financial Strength Metrics
| Metric | HON | TXT |
|---|---|---|
| Current Ratio (MRQ) | 0.96 | 1.80 |
| Debt / Equity (MRQ) | 0.76 | 0.52 |
| Net Debt / EBITDA | 1.23 | 1.54 |
Dividends
Dividend Yield (TTM)
Textron (TXT) at 0.09% 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.
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%
TXT
Capital Goods industry group
0.09%
- Max
- 2.66%
- Q3
- 1.14%
- Median
- 0.24%
- TXT
- 0.09%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Payout Ratio (TTM)
Textron (TXT) at 1.44% pays out a band-typical share of earnings, while Honeywell (HON) at 38.87% distributes more than its industry norm — less retained, thinner cover.
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%
TXT
Capital Goods industry group
1.44%
- Max
- 67.39%
- Q3
- 28.02%
- Median
- 6.86%
- TXT
- 1.44%
- Q1
- 0.00%
- Min
- 0.00%
Dividend Metrics
| Metric | HON | TXT |
|---|---|---|
| Dividend Yield (TTM) | 3.63% | 0.09% |
| Dividend Payout Ratio (TTM) | 38.87% | 1.44% |
Valuation
P/E Ratio (TTM)
Both Honeywell (HON) at 10.91 and Textron (TXT) at 15.03 sit in the cheaper earnings-multiple quartile for P/E ratio, with the market paying less for a dollar of trailing earnings than it pays for typical peers.
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
TXT
Capital Goods industry group
15.03
- Max
- 59.38
- Q3
- 35.92
- Median
- 25.41
- Q1
- 19.47
- TXT
- 15.03
- Min
- 3.03
P/S Ratio (TTM)
Textron (TXT) at 0.92 sits in the cheaper P/S ratio quartile while Honeywell (HON) at 1.85 prices around its industry’s middle — TXT costs less per dollar of sales, though read it alongside growth and margins.
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
TXT
Capital Goods industry group
0.92
- Max
- 7.54
- Q3
- 3.76
- Median
- 2.15
- Q1
- 1.03
- TXT
- 0.92
- Min
- 0.03
P/B Ratio (MRQ)
Textron (TXT) at 1.74 sits in the lower P/B ratio quartile against book while Honeywell (HON) at 3.12 is valued near its industry’s middle — TXT is cheaper on assets, though weigh it against ROE and asset quality.
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
TXT
Capital Goods industry group
1.74
- Max
- 9.66
- Q3
- 5.00
- Median
- 3.12
- Q1
- 1.81
- TXT
- 1.74
- Min
- -1.08
Valuation Metrics
| Metric | HON | TXT |
|---|---|---|
| P/E Ratio (TTM) | 10.91 | 15.03 |
| P/S Ratio (TTM) | 1.85 | 0.92 |
| P/B Ratio (MRQ) | 3.12 | 1.74 |
| Free Cash Flow Yield (TTM) | 10.07% | 5.35% |