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HON vs. WSO.B: Honeywell vs. Watsco Stock Comparison

How do Honeywell (HON) and Watsco (WSO.B) 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 Watsco (WSO.B) both fall under the Capital Goods industry group, but HON is classified in Industrial Conglomerates while WSO.B is classified in Trading Companies & Distributors.

Company profile comparison for Honeywell (HON) and Watsco (WSO.B)
Profile ItemHONWSO.B
NameHoneywell International Inc.Watsco Inc. Class B Common Stock
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryIndustrial ConglomeratesTrading Companies & Distributors
GICS Sub-IndustryIndustrial ConglomeratesTrading Companies & Distributors
Market Capitalization69.74 billion USD12.92 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateJanuary 2, 1962March 17, 1980
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

HON
WSO.B
GSPC
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Honeywell (HON) vs. Watsco (WSO.B), 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 Watsco (WSO.B). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Honeywell (HON) and Watsco (WSO.B)
MetricHONWSO.B
Total Return (1Y)14.14%-11.21%
Total Return (3Y, Annualized)9.90%-3.05%
Total Return (5Y, Annualized)2.32%4.30%

Risk Profile

Drawdown History

HON
WSO.B
GSPC
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Honeywell (HON) vs. Watsco (WSO.B), 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 Watsco (WSO.B). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Honeywell (HON) trades around 2.82M shares per day on average, while Watsco (WSO.B) sees only 74 — a volume gap that can matter for position sizing, exit liquidity, and order execution.

Risk profile metrics for Honeywell (HON) and Watsco (WSO.B)
MetricHONWSO.B
Volatility (1Y, Annualized)27.11%40.28%
Beta (5Y)0.800.64
Max Drawdown (5Y)-25.21%-43.41%
Avg. Volume (3M)2.82M74

Risk-Adjusted Performance

Risk-Return Positioning

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HON and WSO.B 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 Watsco (WSO.B)
MetricHONWSO.B
Sharpe Ratio (1Y)0.36-0.38
Sortino Ratio (1Y)0.52-0.57

Profitability

ROE (TTM)

Honeywell (HON) at 44.39% clears its industry range for ROE, a sharper capital-efficiency signal than Watsco (WSO.B) at 16.21%, 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%

WSO.B

Capital Goods industry group

16.21%

Max
40.55%
Q3
19.29%
WSO.B
16.21%
Median
12.12%
Q1
4.08%
Min
-17.12%
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Honeywell (HON) vs. Watsco (WSO.B): 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 Watsco (WSO.B) at 6.31%, 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%

WSO.B

Capital Goods industry group

6.31%

Max
27.47%
Q3
12.10%
WSO.B
6.31%
Median
6.30%
Q1
1.40%
Min
-12.89%
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Honeywell (HON) vs. Watsco (WSO.B): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Both Honeywell (HON) at 16.92% and Watsco (WSO.B) at 10.14% 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%

WSO.B

Capital Goods industry group

10.14%

Max
36.60%
Q3
18.33%
Median
11.12%
WSO.B
10.14%
Q1
5.14%
Min
-12.63%
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Honeywell (HON) vs. Watsco (WSO.B): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Honeywell (HON) and Watsco (WSO.B)
MetricHONWSO.B
ROE (TTM)44.39%16.21%
ROA (TTM)7.13%8.27%
Net Margin (TTM)18.68%6.31%
Operating Margin (TTM)16.92%10.14%
Gross Margin (TTM)37.21%27.18%

Growth

Revenue Growth

Honeywell (HON) at 7.85% is around its peer norm for revenue growth, while Watsco (WSO.B) at -4.98% drops into the bottom quartile, signaling weaker demand or pricing momentum.

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Honeywell (HON) vs. Watsco (WSO.B): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Honeywell (HON) at -8.27% and Watsco (WSO.B) at -7.47% 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. Watsco (WSO.B): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Honeywell (HON) and Watsco (WSO.B)
MetricHONWSO.B
Revenue Growth (YoY)7.85%-4.98%
Revenue Growth (3Y CAGR)1.82%-0.16%
EPS Growth (YoY)-8.27%-7.47%
EPS Growth (3Y CAGR)3.20%-6.89%

Financial Strength

Current Ratio (MRQ)

Watsco (WSO.B) at 3.15 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

WSO.B

Capital Goods industry group

3.15

Max
5.22
WSO.B
3.15
Q3
2.95
Median
2.08
Q1
1.43
Min
0.36
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Honeywell (HON) vs. Watsco (WSO.B): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Watsco (WSO.B) at 0.16 keeps leverage in the lower industry quartile, while Honeywell (HON) at 0.76 runs a more typical debt-to-equity mix.

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

WSO.B

Capital Goods industry group

0.16

Max
2.33
Q3
1.12
Median
0.60
Q1
0.29
WSO.B
0.16
Min
0.00
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Honeywell (HON) vs. Watsco (WSO.B): A comparison of their debt-to-equity ratio against the Capital Goods industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Honeywell (HON) and Watsco (WSO.B)
MetricHONWSO.B
Current Ratio (MRQ)0.963.15
Debt / Equity (MRQ)0.760.16
Net Debt / EBITDA1.23-0.14

Dividends

Dividend Yield (TTM)

Both Honeywell (HON) at 3.63% and Watsco (WSO.B) at 4.02% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

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%

WSO.B

Capital Goods industry group

4.02%

WSO.B
4.02%
Max
2.66%
Q3
1.14%
Median
0.24%
Q1
0.00%
Min
0.00%
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Honeywell (HON) vs. Watsco (WSO.B): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Watsco (WSO.B) reports payout ratio above 100% at 109.66%, meaning dividends exceeded current-period earnings and sustainability needs extra context. Meanwhile Honeywell (HON) reports 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%

WSO.B

Capital Goods industry group

109.66%

WSO.B
109.66%
Max
67.39%
Q3
28.02%
Median
6.86%
Q1
0.00%
Min
0.00%
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Honeywell (HON) vs. Watsco (WSO.B): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Honeywell (HON) and Watsco (WSO.B)
MetricHONWSO.B
Dividend Yield (TTM)3.63%4.02%
Dividend Payout Ratio (TTM)38.87%109.66%

Valuation

P/E Ratio (TTM)

Honeywell (HON) at 10.91 sits in the cheaper P/E ratio quartile, while Watsco (WSO.B) at 27.26 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

WSO.B

Capital Goods industry group

27.26

Max
59.38
Q3
35.92
WSO.B
27.26
Median
25.41
Q1
19.47
Min
3.03
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Honeywell (HON) vs. Watsco (WSO.B): A comparison of their P/E ratio against the Capital Goods industry group benchmark.

P/S Ratio (TTM)

On P/S ratio, both Honeywell (HON) at 1.85 and Watsco (WSO.B) at 1.74 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

WSO.B

Capital Goods industry group

1.74

Max
7.54
Q3
3.76
Median
2.15
WSO.B
1.74
Q1
1.03
Min
0.03
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Honeywell (HON) vs. Watsco (WSO.B): A comparison of their P/S ratio against the Capital Goods industry group benchmark.

P/B Ratio (MRQ)

On P/B ratio, both Honeywell (HON) at 3.12 and Watsco (WSO.B) at 3.99 are valued close to their industries’ norm against book — neither stands out from peers.

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

WSO.B

Capital Goods industry group

3.99

Max
9.66
Q3
5.00
WSO.B
3.99
Median
3.12
Q1
1.81
Min
-1.08
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Honeywell (HON) vs. Watsco (WSO.B): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Honeywell (HON) and Watsco (WSO.B)
MetricHONWSO.B
P/E Ratio (TTM)10.9127.26
P/S Ratio (TTM)1.851.74
P/B Ratio (MRQ)3.123.99
Free Cash Flow Yield (TTM)10.07%3.50%