In today’s rapidly evolving industrial landscape, Rockwell Automation, Inc. (ROK) and Honeywell International Inc. (HON) stand out as key players driving innovation. Both companies operate within the industrial sector but cater to different market segments and adopt unique strategies for growth. While Rockwell focuses on automation and digital transformation, Honeywell diversifies across multiple industries, including aerospace and building technologies. As we delve into this comparison, I invite you to explore which company presents the more compelling investment opportunity.
Table of contents
Company Overview
Rockwell Automation, Inc. Overview
Rockwell Automation, Inc. is a leader in industrial automation and digital transformation solutions, providing innovative products and services that enhance productivity and operational efficiency. Founded in 1903 and headquartered in Milwaukee, Wisconsin, the company operates through three primary segments: Intelligent Devices, Software & Control, and Lifecycle Services. With a market cap of approximately $44.4B, Rockwell serves diverse industries, including automotive, aerospace, and food and beverage, focusing on integrated hardware and software solutions tailored to the specific needs of its clients. Its commitment to advancing technology positions Rockwell as a critical player in the industrial sector.
Honeywell International Inc. Overview
Honeywell International Inc., established in 1906 and based in Charlotte, North Carolina, operates as a diversified technology and manufacturing company with a market cap of around $122B. The company offers a wide range of products and services across various segments, including Aerospace, Building Technologies, Performance Materials and Technologies, and Safety and Productivity Solutions. Honeywell is dedicated to developing innovative solutions that enhance safety, efficiency, and sustainability, making significant strides in areas like energy management and advanced manufacturing technologies. Its broad portfolio and global reach underscore its position as a vital contributor to various sectors.
Key similarities and differences
Both Rockwell Automation and Honeywell operate within the industrial sector, focusing on technology solutions that drive efficiency and safety. However, their business models differ; Rockwell specializes in automation and digital solutions primarily for discrete manufacturing, while Honeywell encompasses a broader range of sectors, including aerospace and safety technologies. This diversification allows Honeywell to leverage multiple revenue streams, whereas Rockwell’s focus is on specific industrial applications.
Income Statement Comparison
The following table illustrates a comparison of key income statement metrics for Rockwell Automation, Inc. (ROK) and Honeywell International Inc. (HON) for their most recent fiscal years.
| Metric | Rockwell Automation (ROK) | Honeywell International (HON) |
|---|---|---|
| Market Cap | 44.4B | 122.0B |
| Revenue | 8.34B | 38.50B |
| EBITDA | 1.40B | 9.61B |
| EBIT | 1.07B | 8.27B |
| Net Income | 0.87B | 5.71B |
| EPS | 7.69 | 8.76 |
| Fiscal Year | 2025 | 2024 |
Interpretation of Income Statement
In the most recent fiscal year, Rockwell Automation reported revenue growth to 8.34B, reflecting a modest increase from the previous year. However, net income saw a slight decline to 0.87B, indicating pressure on margins, likely due to rising costs. Conversely, Honeywell’s revenue surged to 38.50B with a robust net income of 5.71B, showcasing strong operational efficiency and stable margins. This suggests that Honeywell continues to capitalize on its diversified business model, outperforming Rockwell in both top and bottom-line growth.
Financial Ratios Comparison
Here’s a comparative analysis of the most recent revenue and financial ratios for Rockwell Automation, Inc. (ROK) and Honeywell International Inc. (HON).
| Metric | ROK | HON |
|---|---|---|
| ROE | 39% | 36% |
| ROIC | 16% | 10% |
| P/E | 32 | 25 |
| P/B | 8.7 | 8.0 |
| Current Ratio | 1.46 | 1.27 |
| Quick Ratio | 1.04 | 0.93 |
| D/E | 1.17 | 1.36 |
| Debt-to-Assets | 36% | 35% |
| Interest Coverage | 8.37 | 10.29 |
| Asset Turnover | 0.74 | 0.60 |
| Fixed Asset Turnover | 8.76 | 6.47 |
| Payout Ratio | 60% | 50% |
| Dividend Yield | 1.87% | 2.05% |
Interpretation of Financial Ratios
Both companies exhibit strong financial metrics, with ROK showing superior returns on equity (ROE) and invested capital (ROIC). ROK’s higher asset turnover indicates better efficiency in using its assets to generate sales. However, HON maintains a solid interest coverage ratio and a slightly higher dividend yield, making it appealing for income-focused investors. While ROK’s higher P/E ratio may suggest overvaluation, its growth prospects could justify this. Caution is advised for both due to their elevated debt levels.
Dividend and Shareholder Returns
Rockwell Automation (ROK) has a dividend payout ratio of 59.9%, yielding 1.87%, indicating a commitment to returning value to shareholders. Their share buybacks support this strategy, although risks include potential unsustainable distributions. Conversely, Honeywell (HON) also offers dividends with a payout ratio of 50.9% and a yield of 1.97%, reflecting solid shareholder returns. Both companies’ approaches suggest a focus on long-term value creation, although careful monitoring of their financial health is essential for sustaining these distributions.
Strategic Positioning
Rockwell Automation (ROK) holds a significant market share in industrial automation, focusing on intelligent devices and software solutions. Competing closely with Honeywell (HON), which offers a broader range of technologies across multiple sectors, ROK faces competitive pressure in both product innovation and market reach. Technological disruptions, especially in automation and digital transformation, challenge ROK and HON to continuously adapt and enhance their offerings to maintain relevance and customer loyalty.
Stock Comparison
In this section, I will analyze the stock price movements and trading dynamics of Rockwell Automation, Inc. (ROK) and Honeywell International Inc. (HON) over the past year, highlighting key price changes and trends that may influence investment decisions.
Trend Analysis
Rockwell Automation, Inc. (ROK) Over the past year, ROK experienced a price change of +29.77%. This substantial increase indicates a bullish trend, supported by recent acceleration in its price trajectory. The stock reached a notable high of $395.86 and a low of $227.11, signaling considerable volatility with a standard deviation of 36.69. In the more recent period from September 14, 2025, to November 30, 2025, ROK’s price rose by +14.77%, continuing the bullish momentum with an acceleration status. The standard deviation of 17.78 during this period further underscores the stock’s volatility.
Honeywell International Inc. (HON) Conversely, HON’s stock price has declined by -5.57% over the past year, marking a bearish trend. The stock’s highest price was $240.40, while the lowest was $189.29, with a standard deviation of 12.17, indicating moderate volatility. In the recent period from September 14, 2025, to November 30, 2025, HON experienced a more pronounced drop of -9.11%, reflecting a deceleration in its price movement. The stock’s trend slope of -1.45 further emphasizes this downward trajectory.
In summary, ROK demonstrates strong bullish characteristics with significant price gains and increasing buyer volume, while HON’s bearish trend suggests caution for potential investors.
Analyst Opinions
Recent analyst recommendations highlight a mixed outlook for Rockwell Automation, Inc. (ROK) and Honeywell International Inc. (HON). ROK has received a “C-” rating, with analysts expressing concerns over its return on equity and overall financial health. In contrast, HON has garnered a “B+” rating, praised for its solid return on equity and discounted cash flow metrics. Analysts suggest a cautious approach with ROK, while favoring a buy position for HON. The consensus for ROK is a sell, whereas for HON, it is a buy for 2025.
Stock Grades
In the current market landscape, understanding stock ratings from reputable sources can greatly assist in making informed investment decisions. Here are the latest grades for Rockwell Automation, Inc. (ROK) and Honeywell International Inc. (HON).
Rockwell Automation, Inc. Grades
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Baird | maintain | Outperform | 2025-11-21 |
| B of A Securities | maintain | Buy | 2025-11-20 |
| JP Morgan | maintain | Neutral | 2025-11-11 |
| Morgan Stanley | maintain | Overweight | 2025-11-10 |
| Wells Fargo | maintain | Equal Weight | 2025-11-07 |
| Barclays | maintain | Overweight | 2025-11-07 |
| JP Morgan | maintain | Neutral | 2025-10-15 |
| Oppenheimer | maintain | Outperform | 2025-10-14 |
| Wells Fargo | maintain | Equal Weight | 2025-10-06 |
| Barclays | maintain | Overweight | 2025-08-14 |
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 |
Overall, Rockwell Automation maintains a strong position with consistent “Outperform” and “Buy” ratings, while Honeywell has seen a recent downgrade to “Underperform,” indicating a shift in sentiment towards caution for investors.
Target Prices
The consensus target prices for Rockwell Automation, Inc. and Honeywell International Inc. indicate a positive outlook from analysts.
| Company | Target High | Target Low | Consensus |
|---|---|---|---|
| Rockwell Automation, Inc. (ROK) | 402 | 345 | 377.6 |
| Honeywell International Inc. (HON) | 258 | 230 | 244.2 |
For Rockwell Automation, the current price of 395.86 is slightly below the consensus target of 377.6, suggesting that the stock may be overvalued. In contrast, Honeywell’s current price of 192.19 is well below the consensus target of 244.2, indicating potential upside for investors.
Strengths and Weaknesses
The following table outlines the strengths and weaknesses of Rockwell Automation, Inc. (ROK) and Honeywell International Inc. (HON) based on the most recent data.
| Criterion | Rockwell Automation (ROK) | Honeywell International (HON) |
|---|---|---|
| Diversification | Moderate | High |
| Profitability | High (Net Margin: 15.3%) | High (Net Margin: 15.4%) |
| Innovation | Strong | Strong |
| Global presence | Strong | Very Strong |
| Market Share | Moderate | High |
| Debt level | Moderate (Debt/Equity: 1.17) | High (Debt/Equity: 1.73) |
Key takeaways indicate that both companies exhibit strong profitability and innovation. However, Honeywell has a more significant global presence and higher diversification, while Rockwell has a slightly better debt level. This analysis suggests that investors should consider their risk tolerance and investment strategy when choosing between these two stocks.
Risk Analysis
The following table outlines the key risks associated with Rockwell Automation, Inc. (ROK) and Honeywell International Inc. (HON).
| Metric | Rockwell Automation (ROK) | Honeywell International (HON) |
|---|---|---|
| Market Risk | High | Moderate |
| Regulatory Risk | Moderate | High |
| Operational Risk | Moderate | Moderate |
| Environmental Risk | Moderate | High |
| Geopolitical Risk | High | Moderate |
In synthesizing the risks, both companies face significant market and geopolitical risks, especially given the increasing global tensions and regulatory scrutiny impacting the industrial sector. Recent events indicate that companies in these sectors must navigate complex regulatory environments while managing operational efficiencies.
Which one to choose?
When comparing Rockwell Automation, Inc. (ROK) and Honeywell International Inc. (HON), the latter appears stronger based on various financial metrics and market trends. HON boasts a solid rating of B+, reflecting better return on equity and assets. In contrast, ROK has a lower rating of C-, signaling potential concerns around profitability and growth.
From a stock trend perspective, ROK has experienced a bullish trend with a 29.77% price increase, while HON shows a bearish trend with a decline of 5.57%. Analysts have a more favorable outlook for HON, and its current ratios indicate better liquidity.
For growth-oriented investors, Honeywell may be the preferred choice due to its stronger fundamentals and market positioning, while those focusing on potentially undervalued opportunities might consider ROK. However, both companies face risks related to competition and market dependence.
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 Rockwell Automation, Inc. and Honeywell International Inc. to enhance your investment decisions:
