In the competitive landscape of the industrial sector, Honeywell International Inc. (HON) and Roper Technologies, Inc. (ROP) stand out as leaders, each with distinct approaches to innovation and market strategy. While both companies operate within the broader industrials sector, their specialized offerings—Honeywell’s diversified technology and manufacturing solutions versus Roper’s focus on software and engineered products—create a fascinating comparison. Join me as we explore which of these companies presents a more compelling investment opportunity for your portfolio.
Table of contents
Company Overview
Honeywell International Inc. Overview
Honeywell International Inc. (HON) operates as a diversified technology and manufacturing company globally, focusing on innovation across various sectors. Its mission is to enhance productivity, safety, and sustainability through advanced solutions in aerospace, building technologies, performance materials, and safety products. Honeywell’s comprehensive portfolio includes aerospace systems, automation controls, and personal protective equipment, positioning it as a leader in the industrial sector. With a market capitalization of approximately $119.4B, Honeywell continues to adapt to market demands and technological advancements, providing integrated solutions that address the complexities of modern industries.
Roper Technologies, Inc. Overview
Roper Technologies, Inc. (ROP) specializes in designing and developing engineered products and software solutions, aligning its mission with the evolving needs of various industries. The company offers a wide array of software applications and engineered products, focusing on automation, data analytics, and precision instruments. With a market cap of about $47.5B, Roper’s approach combines technology and engineering to create value-added solutions for sectors like healthcare, financial services, and industrial machinery. This strategic focus has cemented Roper’s reputation as a reliable partner in enhancing operational efficiency.
Key similarities between Honeywell and Roper Technologies include their commitment to innovation and their presence in the industrial sector. However, while Honeywell offers a broader range of physical products alongside software solutions, Roper focuses more on specialized software and engineered products, highlighting distinct approaches to market needs.
Income Statement Comparison
The following table provides a concise comparison of the income statements for Honeywell International Inc. and Roper Technologies, Inc. for the most recent fiscal year, showcasing key financial metrics.
| Metric | Honeywell International Inc. | Roper Technologies, Inc. |
|---|---|---|
| Revenue | 38.50B | 7.04B |
| EBITDA | 9.61B | 3.04B |
| EBIT | 8.27B | 2.23B |
| Net Income | 5.71B | 1.55B |
| EPS | 8.76 | 14.47 |
Interpretation of Income Statement
In the most recent fiscal year, Honeywell reported a revenue increase to 38.50B, up from 36.65B the previous year, indicating a strong growth trend. Net income also rose to 5.71B, reflecting improved profitability despite rising operational costs. Roper Technologies, while smaller in scale, showed significant growth in revenue, jumping from 6.18B to 7.04B, with net income increasing to 1.55B. Both companies maintained stable margins, but Honeywell’s margins slightly improved, suggesting better cost management strategies. Overall, both companies displayed robust financial health, but investors should remain cautious due to potential market volatility.
Financial Ratios Comparison
The following table presents a comparison of key financial metrics and ratios for Honeywell International Inc. (HON) and Roper Technologies, Inc. (ROP) based on the most recent fiscal year data.
| Metric | Honeywell (HON) | Roper (ROP) |
|---|---|---|
| ROE | 30.64% | 8.21% |
| ROIC | 10.48% | 5.50% |
| P/E | 25.77 | 35.94 |
| P/B | 7.90 | 3.33 |
| Current Ratio | 1.31 | 0.40 |
| Quick Ratio | 1.01 | 0.37 |
| D/E | 1.73 | 0.41 |
| Debt-to-Assets | 42.85% | 22.63% |
| Interest Coverage | 7.44 | 10.60 |
| Asset Turnover | 0.51 | 0.22 |
| Fixed Asset Turnover | 6.22 | 47.02 |
| Payout ratio | 50.87% | 21.27% |
| Dividend yield | 1.97% | 0.50% |
Interpretation of Financial Ratios
Honeywell shows stronger financial health with a higher return on equity (ROE) and return on invested capital (ROIC), indicating efficient use of shareholder equity and capital. Its current and quick ratios suggest good liquidity, while Roper’s metrics reveal a significantly lower current ratio, indicating potential liquidity concerns. Roper’s higher P/E suggests greater market expectations but also comes with higher risk. Both companies have manageable debt levels, but Honeywell’s higher debt-to-equity (D/E) ratio indicates more leverage, which could be a risk factor.
Dividend and Shareholder Returns
Honeywell International Inc. (HON) offers a steady dividend with a payout ratio of approximately 51%, yielding about 2.0%. The company follows a consistent trend in dividend payments, supported by strong free cash flow, although risks include potential unsustainable distributions if profits decline. In contrast, Roper Technologies, Inc. (ROP) pays a modest dividend with a lower payout ratio of about 21%, indicating a focus on reinvestment for growth. While ROP also engages in share buybacks, its limited dividends reflect a high-growth strategy, potentially enhancing long-term shareholder value. Overall, both companies prioritize returns, but HON’s approach may provide more immediate income, whereas ROP’s strategy aims at growth and capital appreciation.
Strategic Positioning
Honeywell International Inc. (HON) holds a significant market share in the diversified technology sector, leveraging its extensive portfolio across aerospace and building technologies. In contrast, Roper Technologies, Inc. (ROP) focuses on software and engineered solutions, carving out a niche in industrial machinery. Both companies face competitive pressure from emerging technologies and shifting market demands, necessitating continual adaptation. As technological disruption accelerates, the ability to innovate will be crucial for maintaining their market positions.
Stock Comparison
In the past year, we have observed significant price movements in the stocks of Honeywell International Inc. (HON) and Roper Technologies, Inc. (ROP), reflecting the varying trading dynamics and investor sentiment surrounding these companies.
Trend Analysis
For Honeywell International Inc. (HON), the stock has experienced a percentage change of -10.29% over the past year, indicating a bearish trend. The highest price recorded was 240.4, while the lowest was 188.14. The trend is currently showing deceleration, with a standard deviation of 12.07, suggesting some volatility in price movements.
In the recent period from September 7, 2025, to November 23, 2025, HON’s price change was -12.19%, maintaining the bearish outlook. The standard deviation during this timeframe was 8.55, further emphasizing volatility.
For Roper Technologies, Inc. (ROP), the stock has seen a more pronounced decline with a percentage change of -19.13% over the past year, also reflecting a bearish trend. The highest price recorded for ROP was 588.38, while the lowest was 440.86. This trend is likewise characterized by deceleration, with a standard deviation of 28.7, indicating higher volatility compared to HON.
In the recent period from September 7, 2025, to November 23, 2025, ROP experienced a price change of -14.96%. The standard deviation here was 28.63, confirming substantial volatility during this timeframe.
In summary, both stocks are currently in a bearish trend, with notable price declines and signs of deceleration in their overall price movements.
Analyst Opinions
Recent recommendations for Honeywell International Inc. (HON) and Roper Technologies, Inc. (ROP) indicate a consensus rating of “B+”. Analysts highlight strong return on equity and assets as key strengths for both companies. For HON, the overall score is solid, supported by a favorable discounted cash flow score. ROP also shows promise with a balanced financial profile, though slightly lower on return metrics. Given this analysis, the consensus is a “buy” for both companies, reflecting positive investor sentiment for the current year.
Stock Grades
In this section, I present the latest stock grades from reputable grading companies for Honeywell International Inc. (HON) and Roper Technologies, Inc. (ROP).
Honeywell International Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| B of A Securities | downgrade | Underperform | 2025-11-18 |
| TD Cowen | maintain | Buy | 2025-11-10 |
| Morgan Stanley | maintain | Equal Weight | 2025-10-28 |
| Wells Fargo | maintain | Equal Weight | 2025-10-27 |
| RBC Capital | upgrade | Outperform | 2025-10-27 |
| JP Morgan | maintain | Neutral | 2025-10-24 |
| RBC Capital | maintain | Sector Perform | 2025-10-24 |
| Barclays | maintain | Overweight | 2025-10-24 |
| JP Morgan | maintain | Neutral | 2025-10-15 |
| Wells Fargo | maintain | Equal Weight | 2025-10-06 |
Roper Technologies, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| RBC Capital | downgrade | Sector Perform | 2025-10-27 |
| Barclays | maintain | Underweight | 2025-10-27 |
| TD Cowen | maintain | Buy | 2025-10-24 |
| Raymond James | maintain | Strong Buy | 2025-10-24 |
| RBC Capital | maintain | Outperform | 2025-10-24 |
| Jefferies | maintain | Buy | 2025-10-24 |
| Mizuho | maintain | Neutral | 2025-10-17 |
| JP Morgan | downgrade | Underweight | 2025-10-15 |
| Barclays | maintain | Underweight | 2025-10-01 |
| Truist Securities | maintain | Buy | 2025-07-22 |
Overall, the trend for Honeywell shows a mix of downgrades and maintenance of grades, with a notable downgrade from B of A Securities. Roper Technologies has also experienced a downgrade from RBC Capital, but maintains several strong ratings from other firms. Investors should consider these trends while assessing their positions in these stocks.
Target Prices
Analysts have provided reliable target prices for both Honeywell International Inc. (HON) and Roper Technologies, Inc. (ROP), indicating a positive outlook for these companies.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Honeywell International Inc. (HON) | 258 | 230 | 244.2 |
| Roper Technologies, Inc. (ROP) | 650 | 506 | 574.2 |
For Honeywell, the consensus target price of 244.2 suggests a significant upside from its current price of 188.14, while Roper’s consensus of 574.2 reflects a solid growth potential from its current price of 440.86. Both stocks appear to have favorable analyst expectations compared to their market prices.
Strengths and Weaknesses
The following table summarizes the strengths and weaknesses of Honeywell International Inc. (HON) and Roper Technologies, Inc. (ROP), based on recent financial and operational metrics.
| Criterion | Honeywell International (HON) | Roper Technologies (ROP) |
|---|---|---|
| Diversification | Strong across multiple sectors | Focused on software and engineered products |
| Profitability | Net Profit Margin: 14.8% | Net Profit Margin: 22.0% |
| Innovation | High R&D investment | Strong software development |
| Global presence | Extensive global operations | Primarily U.S.-focused |
| Market Share | Significant in aerospace | Niche leader in tech solutions |
| Debt level | Debt to Equity: 1.73 | Debt to Equity: 0.41 |
Key takeaways suggest that while Honeywell boasts a diversified portfolio and significant global presence, Roper excels in profitability and specialized technologies. Investors should weigh these factors when considering investments in these companies.
Risk Analysis
In the following table, I present a comparative analysis of the risks associated with Honeywell International Inc. (HON) and Roper Technologies, Inc. (ROP) based on the latest available data.
| Metric | Honeywell (HON) | Roper Technologies (ROP) |
|---|---|---|
| Market Risk | Moderate | High |
| Regulatory Risk | High | Moderate |
| Operational Risk | Moderate | Low |
| Environmental Risk | High | Moderate |
| Geopolitical Risk | Moderate | High |
Both companies face significant market and regulatory risks, with Honeywell particularly vulnerable due to its diverse operations. Roper’s higher market risk reflects its reliance on software solutions, making it sensitive to tech market fluctuations. Investors should remain cautious, especially in the current volatile market environment.
Which one to choose?
When comparing Honeywell International Inc. (HON) and Roper Technologies, Inc. (ROP), both companies exhibit strong fundamentals, earning them an overall grade of B+. HON shows a higher net profit margin of 14.8% compared to ROP’s 22.0%, indicating better profitability. However, ROP has a superior current ratio of 0.40 versus HON’s 1.31, suggesting stronger liquidity management. The stock trends for both companies are bearish, with HON experiencing a -10.3% decline and ROP a -19.1% drop over the last year. Analysts generally favor HON for its higher return on equity and assets, while ROP’s growth potential is considered higher.
Investors focused on growth may prefer ROP, while those prioritizing stability and consistent returns may favor HON, especially given its higher liquidity and profitability ratios.
Risks include competition and market dependence, which could impact both companies’ future performance.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Go further
I encourage you to read the complete analyses of Honeywell International Inc. and Roper Technologies, Inc. to enhance your investment decisions:
