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HON vs. WTS: Honeywell vs. Watts Water Stock Comparison

How do Honeywell (HON) and Watts Water (WTS) 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 Watts Water (WTS) both fall under the Capital Goods industry group, but HON is classified in Industrial Conglomerates while WTS is classified in Machinery.

Company profile comparison for Honeywell (HON) and Watts Water (WTS)
Profile ItemHONWTS
NameHoneywell International Inc.Watts Water Technologies, Inc. Class A Common Stock
Country/RegionUnited StatesUnited States
GICS SectorIndustrialsIndustrials
GICS Industry GroupCapital GoodsCapital Goods
GICS IndustryIndustrial ConglomeratesMachinery
GICS Sub-IndustryIndustrial ConglomeratesIndustrial Machinery & Supplies & Components
Market Capitalization69.74 billion USD11.55 billion USD
CurrencyUSDUSD
ExchangeNasdaqNYSE
Listing DateJanuary 2, 1962August 21, 1986
Security TypeCommon StockCommon Stock

Price Performance

Cumulative Growth

HON
WTS
GSPC
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Honeywell (HON) vs. Watts Water (WTS), 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 Watts Water (WTS). Returns over one year are annualized.

Calendar-Year Returns

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

Performance Metrics

Price performance metrics for Honeywell (HON) and Watts Water (WTS)
MetricHONWTS
Total Return (1Y)14.14%33.85%
Total Return (3Y, Annualized)9.90%25.59%
Total Return (5Y, Annualized)2.32%12.56%

Risk Profile

Drawdown History

HON
WTS
GSPC
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Honeywell (HON) vs. Watts Water (WTS), 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 Watts Water (WTS). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Honeywell (HON) and Watts Water (WTS)
MetricHONWTS
Volatility (1Y, Annualized)27.11%27.38%
Beta (5Y)0.801.11
Max Drawdown (5Y)-25.21%-44.08%
Avg. Volume (3M)2.82M225.08K

Risk-Adjusted Performance

Risk-Return Positioning

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HON and WTS 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 Watts Water (WTS)
MetricHONWTS
Sharpe Ratio (1Y)0.361.08
Sortino Ratio (1Y)0.521.78

Profitability

ROE (TTM)

Both companies show strong equity returns, but Honeywell (HON) at 44.39% is the standout with ROE above its industry range; Watts Water (WTS) at 20.91% 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%

WTS

Capital Goods industry group

20.91%

Max
40.55%
WTS
20.91%
Q3
19.29%
Median
12.12%
Q1
4.08%
Min
-17.12%
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Honeywell (HON) vs. Watts Water (WTS): A comparison of their ROE against the Capital Goods industry group benchmark.

Net Margin (TTM)

For every dollar of sales, both Honeywell (HON) at 18.68% and Watts Water (WTS) at 16.00% 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%

WTS

Capital Goods industry group

16.00%

Max
27.47%
WTS
16.00%
Q3
12.10%
Median
6.30%
Q1
1.40%
Min
-12.89%
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Honeywell (HON) vs. Watts Water (WTS): A comparison of their net margin against the Capital Goods industry group benchmark.

Operating Margin (TTM)

Watts Water (WTS) at 20.85% operates in the top operating margin quartile, ahead of Honeywell (HON) at 16.92%, which runs 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%

WTS

Capital Goods industry group

20.85%

Max
36.60%
WTS
20.85%
Q3
18.33%
Median
11.12%
Q1
5.14%
Min
-12.63%
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Honeywell (HON) vs. Watts Water (WTS): A comparison of their operating margin against the Capital Goods industry group benchmark.

Profitability Metrics

Profitability metrics for Honeywell (HON) and Watts Water (WTS)
MetricHONWTS
ROE (TTM)44.39%20.91%
ROA (TTM)7.13%12.05%
Net Margin (TTM)18.68%16.00%
Operating Margin (TTM)16.92%20.85%
Gross Margin (TTM)37.21%49.09%

Growth

Revenue Growth

Both Honeywell (HON) at 7.85% and Watts Water (WTS) at 8.27% 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. Watts Water (WTS): A comparison of their Revenue Growth across different time periods.

EPS Growth

Both Honeywell (HON) at -8.27% and Watts Water (WTS) at 17.03% 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. Watts Water (WTS): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Honeywell (HON) and Watts Water (WTS)
MetricHONWTS
Revenue Growth (YoY)7.85%8.27%
Revenue Growth (3Y CAGR)1.82%7.20%
EPS Growth (YoY)-8.27%17.03%
EPS Growth (3Y CAGR)3.20%10.78%

Financial Strength

Current Ratio (MRQ)

Watts Water (WTS) at 2.80 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

WTS

Capital Goods industry group

2.80

Max
5.22
Q3
2.95
WTS
2.80
Median
2.08
Q1
1.43
Min
0.36
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Honeywell (HON) vs. Watts Water (WTS): A comparison of their current ratio against the Capital Goods industry group benchmark.

Debt / Equity (MRQ)

Watts Water (WTS) at 0.08 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

WTS

Capital Goods industry group

0.08

Max
2.33
Q3
1.12
Median
0.60
Q1
0.29
WTS
0.08
Min
0.00
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Honeywell (HON) vs. Watts Water (WTS): 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 Watts Water (WTS)
MetricHONWTS
Current Ratio (MRQ)0.962.80
Debt / Equity (MRQ)0.760.08
Net Debt / EBITDA1.23-0.40

Dividends

Dividend Yield (TTM)

Watts Water (WTS) at 0.66% 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%

WTS

Capital Goods industry group

0.66%

Max
2.66%
Q3
1.14%
WTS
0.66%
Median
0.24%
Q1
0.00%
Min
0.00%
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Honeywell (HON) vs. Watts Water (WTS): A comparison of their dividend yield against the Capital Goods industry group benchmark.

Dividend Payout Ratio (TTM)

Watts Water (WTS) at 17.24% 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%

WTS

Capital Goods industry group

17.24%

Max
67.39%
Q3
28.02%
WTS
17.24%
Median
6.86%
Q1
0.00%
Min
0.00%
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Honeywell (HON) vs. Watts Water (WTS): A comparison of their payout ratio against the Capital Goods industry group benchmark.

Dividend Metrics

Dividend metrics for Honeywell (HON) and Watts Water (WTS)
MetricHONWTS
Dividend Yield (TTM)3.63%0.66%
Dividend Payout Ratio (TTM)38.87%17.24%

Valuation

P/E Ratio (TTM)

Honeywell (HON) at 10.91 sits in the cheaper P/E ratio quartile, while Watts Water (WTS) at 25.95 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

WTS

Capital Goods industry group

25.95

Max
59.38
Q3
35.92
WTS
25.95
Median
25.41
Q1
19.47
Min
3.03
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Honeywell (HON) vs. Watts Water (WTS): 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 Watts Water (WTS) at 4.14 sits in the pricier quartile — WTS 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

WTS

Capital Goods industry group

4.14

Max
7.54
WTS
4.14
Q3
3.76
Median
2.15
Q1
1.03
Min
0.03
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Honeywell (HON) vs. Watts Water (WTS): 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 Watts Water (WTS) at 4.98 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

WTS

Capital Goods industry group

4.98

Max
9.66
Q3
5.00
WTS
4.98
Median
3.12
Q1
1.81
Min
-1.08
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Honeywell (HON) vs. Watts Water (WTS): A comparison of their P/B ratio against the Capital Goods industry group benchmark.

Valuation Metrics

Valuation metrics for Honeywell (HON) and Watts Water (WTS)
MetricHONWTS
P/E Ratio (TTM)10.9125.95
P/S Ratio (TTM)1.854.14
P/B Ratio (MRQ)3.124.98
Free Cash Flow Yield (TTM)10.07%2.21%