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Compare Stocks › HON vs VZ

Honeywell International Inc. (HON) vs Verizon Communications Inc. (VZ)

HON
Honeywell International Inc.
$229.03
VS
VZ
Verizon Communications Inc.
$49.48

Rewards

HON
  • ★Honeywell International Inc. has maintained ROIC above 10% for 4 consecutive years, suggesting solid business economics.
  • ★Honeywell International Inc. scores 85/100 on the Economic Moat Score (Wide Moat), with margin stability as the strongest competitive dimension.
  • ★Return on equity has consistently exceeded 20% over 4 years, indicating efficient use of shareholder capital.
VZ
  • ★Free cash flow has grown at a 23.7% CAGR over the past 4 years, demonstrating strong earnings power growth.
  • ★Dividend yield of 5.72% with a consistent or growing payout over the past 4 years.
  • ★FCF yield of 8.3% is historically attractive — the business generates significant cash relative to its price.

Risks

HON
  • ⚠Trailing P/E of 33.0x is 33% above the historical average of 24.9x — the stock trades at a premium to its own history.
  • ⚠High leverage (2.37x debt/equity) combined with thin interest coverage (-1.0x) poses financial risk.
  • ⚠6 insider sales totaling $6.4M with no purchases in the past 3 months — insiders are reducing their exposure.
VZ
  • ⚠Altman Z-Score of 1.24 places the company in the distress zone — financial patterns resemble those of companies that experienced bankruptcy.

Key Valuation Metrics

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HON
VZ
Valuation
$4.66B
Free Cash Flow
$17.24B
3.20%
FCF Yield
8.26%
33.00
Trailing P/E
12.19
19.94
Forward P/E
9.40
Quality & Moat
9.01%
ROIC
7.89%
34.19%
ROE
16.24%
36.93%
Gross Margin
59.07%
N/A
PEG Ratio
N/A
Balance Sheet Safety
2.37
Debt / Equity
1.75
N/A
Interest Coverage
N/A
2.67
Net Debt / EBITDA
3.32
2.08%
Dividend Yield
5.72%
HON: 3Ties: 1VZ: 7
HONVZ

Historical Fundamentals

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HON

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

VZ

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation.

$1 Retained Earnings Test

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HON
$-1.48
created per $1 retained over 3 years
Market Cap Declined
Σ Retained
$7.36B
Δ Market Cap
$-10.90B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer
VZ
$0.50
created per $1 retained over 3 years
Mediocre Allocator
Σ Retained
$12.54B
Δ Market Cap
+$6.29B
Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Buffett's "$1 Test": For every $1 of earnings retained, has management created at least $1 of market value?
> $1 created per $1 retained = Value Creator · < $1 created = Value Destroyer

Discounted Cash Flow (DCF) Analysis

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HON
68.2% Overvalued
Price is 68.2% above estimated fair value
Current Price: $229.03
Fair Value: $136.15
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued
VZ
11.2% Overvalued
Price is 11.2% above estimated fair value
Current Price: $49.48
Fair Value: $44.50
Strongly undervalued
Undervalued
Fairly valued
Overvalued
Strongly overvalued

Reverse DCF — Market-Implied Growth

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HON

What growth rate is the market pricing in at $229?

+15.6%
Market-Implied Owner Earnings Growth
Standard FCF implies +15.8%

The market implies +15.6% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +15.8%, reflecting heavy growth investment.

VZ

What growth rate is the market pricing in at $49?

+8.9%
Market-Implied Owner Earnings Growth
Standard FCF implies +8.8%

The market implies +8.9% Owner Earnings growth, above historical trends.

Standard FCF implies a demanding +8.8%, reflecting heavy growth investment.

Economic Moat Score

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HON
85/100
Wide Moat
70+ Wide · 40-69 Narrow · <40 None

Wide moat with strength across all dimensions. Margin Stability is the standout factor.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 5 years of fundamental data.
VZ
55/100
Narrow Moat
70+ Wide · 40-69 Narrow · <40 None

Narrow moat with margin stability as the key competitive advantage. Improving roic consistency would strengthen the moat.

Composite score measuring competitive advantage durability across four dimensions: returns above cost of capital, pricing power stability, revenue predictability, and capital efficiency. Based on 4 years of fundamental data.

Forensic Accounting

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HON
-2.60
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.
VZ
-2.69
Unlikely Manipulator
Above -1.78 = likely manipulator · -2.22 to -1.78 = grey zone

M-Score Trend

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Beneish's 8-variable model estimates the probability of earnings manipulation. An M-Score above -1.78 signals elevated risk — companies in this range have historically been 3-5× more likely to be manipulating earnings. Scores between -2.22 and -1.78 fall in a grey zone warranting further investigation.

Ownership Breakdown

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HON
Insiders 0.1%Institutions 80.9%Retail & Other 19.0%
No. of Institutional Holders3,286
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.
VZ
Insiders 0.1%Institutions 68.9%Retail & Other 31.1%
No. of Institutional Holders3,832
High insider ownership aligns management incentives with shareholders — a key signal in Buffett-style analysis. Institutional concentration can indicate smart-money conviction but also crowding risk.

High insider ownership aligns management incentives with shareholders. Institutional concentration can indicate smart-money conviction but also crowding risk.

Insider Buying Activity

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HON
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises
VZ
0
Buys (3M)
0
Buys (12M)
No open market insider purchases found.
Open market purchases · includes direct & indirect ownership · excludes option exercises

Open market purchases · includes direct & indirect ownership · excludes option exercises.

Insider Selling Activity

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HON
6
Sells (3M)
8
Sells (12M)
Total value (12M): $16.52M
CURRIER JAMES E
Officer
$547,725
@ $243.65 · 2026-03-02
WEST KENNETH J
Officer
$211,877
@ $242.70 · 2026-03-02
LIEBLEIN GRACE D
Director
$1.43M
@ $243.73 · 2026-02-23
DAVIS D. SCOTT
Director
$568,080
@ $240.00 · 2026-02-19
MAILLOUX ROBERT D
Officer
$1.26M
@ $239.00 · 2026-02-06
MAILLOUX ROBERT D
Officer
$2.42M
@ $229.00 · 2026-01-30
BOLDEA LUCIAN
Officer
$9.34M
@ $221.58 · 2025-08-27
WEST KENNETH J
Officer
$752,026
@ $218.10 · 2025-08-01
MADDEN ANNE T
General Counsel
$6.00M
@ $207.89 · 2025-02-10
ADAMCZYK DARIUS E
Director
$5.81M
@ $203.96 · 2024-05-15
LEWIS GREGORY P
Chief Financial Officer
$4.87M
@ $193.06 · 2024-04-29
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
VZ
2
Sells (3M)
7
Sells (12M)
Total value (12M): $2.67M
STILLWELL MARY-LEE
Officer
$428,450
@ $50.00 · 2026-03-02
RUSSO JOSEPH J.
Officer
$429,906
@ $44.88 · 2026-02-02
MALADY KYLE
Officer
$438,101
@ $43.81 · 2025-05-08
MALADY KYLE
Officer
$396,900
@ $44.10 · 2025-05-07
MALADY KYLE
Officer
$329,062
@ $43.87 · 2025-04-30
MALADY KYLE
Officer
$430,240
@ $43.02 · 2025-04-24
MALADY KYLE
Officer
$212,425
@ $42.48 · 2025-04-23
VENKATESH VANDANA
Officer
$437,939
@ $43.79 · 2025-02-25
MALADY KYLE
Officer
$261,623
@ $39.70 · 2025-02-04
MALADY KYLE
Officer
$319,080
@ $39.88 · 2025-02-03
MALADY KYLE
Chief Executive Officer
$453,155
@ $40.88 · 2025-01-29
MALADY KYLE
Officer
$809,800
@ $40.49 · 2025-01-28
MALADY KYLE
Officer
$810,800
@ $40.54 · 2025-01-27
Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives

Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives.

🎭 Mr. Market's Mood

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HON
FearGreed
😐Neutral(57/100)

"Market is pricing this stock without strong emotion in either direction"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.
VZ
FearGreed
😏Greed(61/100)

"Market is optimistic — be cautious and ensure you have a margin of safety"

Composite sentiment score based on 6 market signals. Inspired by Buffett's "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

Composite sentiment score based on market signals. Inspired by Buffett’s "Mr. Market" allegory — fear = potential opportunity, greed = potential risk. Must be used alongside fundamental analysis, not in isolation.

⚖️ Buffett Signal

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HON
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Neutral (57)
VZ
⚪Awaiting DCF Data

The Buffett Signal cross-references market sentiment with DCF valuation. Configure the DCF Analysis above to generate a signal.

DCF Margin of Safety: N/AMr. Market's Mood: Greed (61)
View HON Full AnalysisView VZ Full Analysis