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Compare Stocks › HON vs XOM

Honeywell International Inc. (HON) vs ExxonMobil Holdings Corporation (XOM): Which Is the Better Buy in 2026?

As of 2026-08-03, HON is undervalued at $249, with a DCF intrinsic value of $653 and a margin of safety of 62%. XOM is undervalued at $155, with an intrinsic value of $459379071521 and a margin of safety of 100%. Of the two, XOM has the wider margin of safety.

HON
Honeywell International Inc.
$249.30
VS
XOM
ExxonMobil Holdings Corporation
$154.96

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.
XOM

    Risks

    HON
    • ⚠FCF yield of 6.9% suggests reasonable valuation assuming continued moderate growth.
    • ⚠PEG ratio of 3.84 indicates the stock is expensive relative to its expected growth — the market may be pricing in more growth than analysts project.
    • ⚠Insiders have sold $4.2M worth of stock in the past 3 months — significant insider liquidation.
    XOM
    • ⚠ROIC has declined by 12.0 percentage points over the past 4 years, which may signal competitive erosion.
    • ⚠Buybacks have been poorly timed — 3 out of 4 years involved repurchases at relatively expensive valuations.
    • ⚠Trailing P/E of 26.1x is 104% above the historical average of 12.8x — the stock trades at a premium to its own history.

    Key Valuation Metrics

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    HON
    XOM
    Valuation
    $5.42B
    Free Cash Flow
    $20.67B
    6.86%
    FCF Yield
    N/A
    9.58
    Trailing P/E
    26.09
    24.90
    Forward P/E
    14.65
    Quality & Moat
    11.31%
    ROIC
    14.66%
    46.58%
    ROE
    12.58%
    36.51%
    Gross Margin
    29.77%
    3.84
    PEG Ratio
    1.32
    Balance Sheet Safety
    1.37
    Net Debt / Equity
    0.12
    N/A
    Interest Coverage
    N/A
    3.03
    Net Debt / EBITDA
    0.47
    1.15%
    Dividend Yield
    2.65%
    HON: 3Ties: 1XOM: 7
    HONXOM

    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. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

    XOM

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

    Price ÷ Earnings Per Share — how many years of current earnings you're paying for at today's price. Lower P/E may indicate undervaluation. The dashed forward point is the forward P/E — today's price ÷ analyst consensus EPS.

    $1 Retained Earnings Test

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    HON
    $-0.78
    created per $1 retained over 3 years
    Market Cap Declined
    Σ Retained
    $7.36B
    Δ Market Cap
    $-5.72B
    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
    XOM
    $0.00
    created per $1 retained over 3 years
    Value Destroyer
    Σ Retained
    $49.66B
    Δ Market Cap
    +$10.04
    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
    61.8% Margin of Safety
    Price is 61.8% below estimated fair value
    Current Price: $249.30
    Fair Value: $652.73
    Strongly undervalued
    Undervalued
    Fairly valued
    Overvalued
    Strongly overvalued
    XOM
    100.0% Margin of Safety
    Price is 100.0% below estimated fair value
    Current Price: $154.96
    Fair Value: $459379071520.71
    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 $249?

    +8.0%
    Market-Implied Owner Earnings Growth
    Standard FCF implies +7.2%

    The market implies +8.0% Owner Earnings growth, above historical trends.

    Standard FCF implies a demanding +7.2%, reflecting heavy growth investment.

    XOM

    What growth rate is the market pricing in at $155?

    -30.0%
    Market-Implied FCF Growth Rate

    Market below historical growth — potential opportunity.

    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 4 years of fundamental data.
    XOM
    48/100
    Narrow Moat
    70+ Wide · 40-69 Narrow · <40 None

    Narrow moat with reinvestment efficiency as the key competitive advantage. Improving margin stability 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.
    XOM
    -2.74
    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 0.0%Institutions 81.3%Retail & Other 18.7%
    No. of Institutional Holders3,025
    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.
    XOM
    Insiders 0.1%Institutions 68.8%Retail & Other 31.2%
    No. of Institutional Holders5,341
    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
    XOM
    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
    1
    Sells (3M)
    8
    Sells (12M)
    Total value (12M): $19.92M
    WEST KENNETH J
    Officer
    $4.15M
    @ $243.77 · 2026-07-27
    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
    Direct ownership only · excludes indirect, option exercises, planned (10b5-1) sales & derivatives
    XOM
    0
    Sells (3M)
    0
    Sells (12M)
    No open market insider sales found.
    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
    😏Greed(69/100)

    "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.
    XOM
    FearGreed
    😏Greed(64/100)

    "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: Greed (69)
    XOM
    ⚪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 (64)
    View HON Full AnalysisView XOM Full Analysis

    Frequently Asked Questions: HON vs XOM

    Is Honeywell International Inc. or ExxonMobil Holdings Corporation more undervalued in 2026?▼

    Based on our discounted cash flow model, XOM trades at a 100.0% margin of safety (intrinsic value $459379071521 vs. price $155), compared to HON's 61.8% margin of safety (intrinsic $653 vs. $249).

    Which stock has a wider economic moat, Honeywell International Inc. or ExxonMobil Holdings Corporation?▼

    HON scores 85/100 (Wide moat), while XOM scores 48/100 (Narrow moat). The moat score measures competitive advantage durability across ROIC consistency, margin stability, revenue predictability, and reinvestment efficiency.

    Is ExxonMobil Holdings Corporation in financial distress?▼

    XOM's Altman Z-Score of 2.5 places it in the Grey zone, signaling elevated bankruptcy risk. HON scores 2.5 (Grey zone). The Altman Z-Score is a five-factor model that predicts insolvency within two years; scores below 1.81 indicate significant distress.

    Which stock has higher return on invested capital, Honeywell International Inc. or ExxonMobil Holdings Corporation?▼

    XOM earns 14.7% ROIC versus HON's 11.3%. A higher ROIC means the company generates more profit per dollar of capital employed, a hallmark of durable competitive advantage in Buffett-style analysis.

    Which dividend is safer, Honeywell International Inc.'s or ExxonMobil Holdings Corporation's?▼

    HON's dividend earns a safety score of 84/100 (Very Safe), compared to XOM's 69/100 (Safe). HON has raised its dividend for 3 consecutive years.