In the dynamic world of industrial technology, two prominent players stand out: Honeywell International Inc. (HON) and Roper Technologies, Inc. (ROP). Both companies operate within the same sector, focusing on innovation and diverse offerings, yet they pursue distinct strategies that shape their market presence. Honeywell excels in a wide array of technology and manufacturing solutions, while Roper specializes in engineered products and software. As we explore their strengths and market strategies, I aim to help you identify which company could be a more compelling investment opportunity for your portfolio.
Table of contents
Company Overview
Honeywell International Inc. Overview
Honeywell International Inc. (Ticker: HON) is a diversified technology and manufacturing company headquartered in Charlotte, North Carolina. Founded in 1906, Honeywell operates across various segments, including Aerospace, Building Technologies, Performance Materials and Technologies, and Safety and Productivity Solutions. The company’s mission is to create a safer, more sustainable world through innovative solutions that enhance productivity and efficiency. With a market capitalization of approximately $122B, Honeywell is a significant player in the industrial sector, offering a broad array of products and services, from advanced avionics to smart building technologies.
Roper Technologies, Inc. Overview
Roper Technologies, Inc. (Ticker: ROP), based in Sarasota, Florida, specializes in designing and developing software and engineered products. Established in 1981, Roper focuses on providing cloud-based solutions across various industries, including healthcare, financial services, and foodservice operations. The company’s mission emphasizes leveraging technology to improve operational efficiency and data management for its clients. With a market capitalization of around $48B, Roper is known for its innovative approach in the industrial machinery sector, delivering a wide range of software and analytical solutions that cater to diverse market needs.
Key similarities and differences
Both Honeywell and Roper Technologies operate within the industrial sector but differ significantly in their product offerings. Honeywell focuses on a diverse range of technologies and manufacturing solutions, whereas Roper specializes in software and engineered products. While both companies emphasize innovation and efficiency, their market positions reflect distinct strategies—Honeywell’s breadth versus Roper’s software-centric approach.
Income Statement Comparison
The following table provides a comparative analysis of the most recent income statements for Honeywell International Inc. (HON) and Roper Technologies, Inc. (ROP). This comparison highlights key financial metrics that are essential for evaluating each company’s performance.
| Metric | Honeywell International Inc. (HON) | Roper Technologies, Inc. (ROP) |
|---|---|---|
| Market Cap | 122.02B | 48.03B |
| 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 |
| Fiscal Year | 2024 | 2024 |
Interpretation of Income Statement
In the most recent fiscal year, Honeywell displayed a revenue increase to 38.50B, reflecting a growth trend, while Roper’s revenue rose to 7.04B, indicating positive momentum as well. Honeywell’s net income also improved to 5.71B, showcasing robust profitability, while Roper’s net income reached 1.55B, signaling a healthy performance as well. Margins remained stable for both companies, with Honeywell achieving an EBITDA margin of approximately 24.9% and Roper at 43.1%. However, Roper’s higher EPS suggests superior profitability relative to its share count, which may be attractive for investors focusing on earnings potential. Overall, both companies appear to be executing well in their respective markets, with Honeywell leading in terms of absolute scale and profitability.
Financial Ratios Comparison
In this section, I present a comparative analysis of the financial ratios of 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 | 2.95 |
| Current Ratio | 1.31 | 0.40 |
| Quick Ratio | 1.01 | 0.37 |
| D/E | 1.73 | 0.41 |
| Debt-to-Assets | 0.43 | 0.23 |
| Interest Coverage | 7.44 | 10.60 |
| Asset Turnover | 0.51 | 0.22 |
| Fixed Asset Turnover | 6.22 | 47.02 |
| Payout ratio | 50.87% | 21.77% |
| Dividend yield | 1.97% | 0.58% |
Interpretation of Financial Ratios
Honeywell exhibits stronger profitability metrics, particularly with a high ROE (30.64%) and ROIC (10.48%), compared to Roper’s lower figures. The current ratio of Honeywell (1.31) indicates better short-term liquidity versus Roper’s underperforming current ratio (0.40). However, Roper shows a significantly high fixed asset turnover ratio (47.02), reflecting efficient asset utilization. The higher P/E ratio of Roper (35.94) may suggest overvaluation compared to Honeywell. Investors should weigh these factors, as Honeywell appears more stable but Roper’s efficiency in asset management is noteworthy.
Dividend and Shareholder Returns
Honeywell International Inc. (HON) maintains a healthy dividend policy with a payout ratio of approximately 51%, yielding around 2.0%. The dividend per share has shown a consistent upward trend, supported by strong free cash flow, though caution is warranted regarding sustainability amid potential economic fluctuations.
In contrast, Roper Technologies, Inc. (ROP) offers a lower dividend yield of 0.5% with a payout ratio of about 21%. This reflects a strategy focused on reinvestment and acquisitions, which may align with long-term value creation despite limited direct shareholder returns.
Overall, both companies demonstrate approaches that can support sustainable long-term value creation—HON through dividends and ROP through strategic reinvestment.
Strategic Positioning
Honeywell International Inc. (HON) holds a strong market share in diversified technologies, particularly in aerospace and building technologies, supported by a market cap of $122B. Roper Technologies, Inc. (ROP), with a market cap of $48B, specializes in software and engineered solutions, facing competitive pressure from both traditional industrials and emerging tech firms. Both companies are navigating technological disruptions, emphasizing innovation to maintain their positions in the rapidly evolving industrial landscape.
Stock Comparison
In this section, I will examine the stock price movements and trading dynamics of Honeywell International Inc. (HON) and Roper Technologies, Inc. (ROP) over the past year, highlighting significant trends and behaviors that can inform investment decisions.
Trend Analysis
Honeywell International Inc. (HON) Over the past year, HON’s stock has experienced a percentage change of -5.57%, indicating a bearish trend. The stock’s highest price reached 240.4, while the lowest was 189.29. The trend shows signs of deceleration, and the standard deviation of 12.17 suggests moderate volatility.
In the recent period from September 14, 2025, to November 30, 2025, the stock recorded a price change of -9.11%. The trend slope of -1.45 further confirms the bearish direction, with a standard deviation of 7.55 indicating lower volatility compared to the overall trend.
Roper Technologies, Inc. (ROP) For ROP, the stock has seen a considerable decrease of -14.69% over the past year, confirming a bearish trend. Key price points include a high of 588.38 and a low of 443.75. Similar to HON, ROP shows deceleration in its price movement, with a standard deviation of 30.17 indicating higher volatility.
In the recent analysis period from September 14, 2025, to November 30, 2025, ROP’s price declined by -12.94%. The trend slope of -7.36 accentuates the bearish nature, supported by a standard deviation of 28.09, which reflects significant volatility.
In conclusion, both HON and ROP are currently experiencing bearish trends with notable declines and increasing volatility. As an investor, it is crucial to consider these dynamics and approach these stocks with caution, focusing on risk management strategies.
Analyst Opinions
Recent evaluations for Honeywell International Inc. (HON) and Roper Technologies, Inc. (ROP) indicate a consensus “Buy” rating for both companies. Analysts have given HON a B+ rating, highlighting strong performance in return on equity and assets, while ROP also received a B+ rating, noted for a solid discounted cash flow score. Experts suggest that both firms exhibit robust financial health and growth potential, making them attractive investments for the current year.
Stock Grades
In this section, I will present the latest stock grades for Honeywell International Inc. (HON) and Roper Technologies, Inc. (ROP) based on reliable data from well-known grading companies.
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 |
The overall trend for Honeywell shows a mix of downgrades and maintained grades, indicating some volatility in investor sentiment. Roper Technologies, on the other hand, has experienced a downgrade from RBC Capital but maintains a strong buy rating from Raymond James, suggesting a divergence in opinions among analysts.
Target Prices
The consensus target prices for Honeywell International Inc. (HON) and Roper Technologies, Inc. (ROP) reflect optimistic outlooks from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Honeywell International Inc. | 258 | 230 | 244.2 |
| Roper Technologies, Inc. | 650 | 506 | 574.2 |
Honeywell’s target consensus of 244.2 suggests a potential upside from its current price of 192.19, while Roper’s consensus of 574.2 indicates significant growth potential compared to its current price of 446.22.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Honeywell International Inc. (HON) and Roper Technologies, Inc. (ROP).
| Criterion | Honeywell International Inc. | Roper Technologies, Inc. |
|---|---|---|
| Diversification | Strong across multiple sectors | Focused on niche markets |
| Profitability | Net profit margin: 14.8% | Net profit margin: 22.0% |
| Innovation | Consistent investment in R&D | High software and tech focus |
| Global presence | Established worldwide | Primarily North America |
| Market Share | Significant in industrial tech | Growing in specialized sectors |
| Debt level | Debt to equity ratio: 1.73 | Debt to equity ratio: 0.41 |
In summary, Honeywell showcases strong diversification and a global presence, while Roper excels in profitability and innovation. Investors should weigh these aspects against their risk tolerance and investment strategy.
Risk Analysis
Below is a summary of risks associated with Honeywell International Inc. (HON) and Roper Technologies, Inc. (ROP):
| Metric | Honeywell International Inc. (HON) | Roper Technologies, Inc. (ROP) |
|---|---|---|
| Market Risk | Moderate | Moderate |
| Regulatory Risk | High | Moderate |
| Operational Risk | Low | Moderate |
| Environmental Risk | Moderate | Low |
| Geopolitical Risk | High | Moderate |
Both companies face significant market risk due to inflation and geopolitical tensions affecting supply chains. Regulatory pressures are heightened for HON, given its industrial focus, while ROP experiences moderate risk in its diversified segments.
Which one to choose?
When comparing Honeywell International Inc. (HON) and Roper Technologies, Inc. (ROP), both companies show strengths and weaknesses. Honeywell has a higher net profit margin of 15% compared to Roper’s 22%, indicating better efficiency in turning sales into profit. However, Roper’s price-to-earnings ratio of 42.6 suggests it may be overvalued compared to Honeywell’s 25.8. Despite both companies receiving a rating of B+, analysts have a more favorable outlook on Honeywell due to its solid return on equity (30.6%) and better debt management.
For growth-focused investors, Honeywell may be the more appealing option, while those seeking stability might lean towards Roper. It’s important to note that both companies face risks from market dependence and competition, which could affect 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:
