ETN vs HON Stock Comparison: AI Score, Valuation, Performance and Upside
Eaton and Honeywell are both diversified industrial companies, but Eaton has become closely tied to the electrification and data center power demand theme, while Honeywell spans aerospace, building automation, and industrial technology with an ongoing portfolio separation underway.
Eaton offers more direct exposure to the electrification and data center power buildout theme, while Honeywell offers diversified aerospace and industrial automation exposure alongside a planned portfolio separation. Consider whether you prefer Eaton's electrification growth positioning or Honeywell's broader industrial diversification.
HON holds the edge across 3 of 5 key metrics in this comparison. ETN has delivered stronger 1-year price return (+19.78% vs -2.05%), though HON has the better forward P/E setup (21.74x vs 25.07x for ETN). On fundamentals, ETN is growing revenue faster (21.40%), while HON maintains the higher operating margin (20.25%) — a classic growth-versus-profitability split. Analyst consensus implies meaningfully more upside for HON (+21.46%) than for ETN (+18.07%).
Human Wall Street analysts' price targets, typically implying a ~12-month view — a separate signal from this site's own AI Prediction Signal further down the page, which is a 5-/30-day machine-learning forecast based on price history alone.
- Want direct exposure to data center, grid modernization, and broader electrification demand trends
- Value Eaton's diversified portfolio spanning electrical, aerospace, vehicle, and hydraulics segments
- Believe backlog visibility in the electrical segment supports durable multi-year growth
- Are comfortable paying a premium valuation tied to the electrification growth narrative
- Want diversified exposure across aerospace, building automation, and industrial technology segments
- Believe planned portfolio separation initiatives could unlock additional shareholder value over time
- Value exposure to sustainability and efficiency-driven building automation capital spending
- Prefer a broader industrial conglomerate over a company concentrated in a single growth theme
| Metric | ETN | HON |
|---|---|---|
| AI scorei | 62.3 | 42.0 |
| AI ranki | #118 | #946 |
| Latest closei | $410.85 | $209.61 |
| 1M returni | -8.14% | -15.52% |
| 6M returni | +15.80% | -12.07% |
| 1Y returni | +19.78% | -2.05% |
How much would $10,000 be worth today if invested at the start of each period, with all dividends reinvested?
| Period | ETN | HON |
|---|---|---|
| 1Y ago | $11.8K (+18.0%) started 2025-09-04 | $9.74K (-2.6%) started 2025-09-04 |
| 5Y ago | $28.55K (+185.5%) started 2021-09-07 | $11.02K (+10.2%) started 2021-09-07 |
| 10Y ago | $92.75K (+827.5%) started 2016-09-06 | $27.72K (+177.2%) started 2016-09-06 |
Hypothetical — past performance does not guarantee future results.
| Metric | ETN | HON |
|---|---|---|
| Market capi | $156.44B | $68.91B |
| Trailing P/Ei | 40.97 | 8.36 |
| Forward P/Ei | 25.07 | 21.74 |
| Price/Salesi | N/A | 3.75 |
| EV/Revenuei | 5.90 | 2.50 |
| Analyst targeti | $475.57 | $264.09 |
| Target upsidei | +18.07% | +21.46% |
| Metric | ETN | HON |
|---|---|---|
| Revenue growthi | 21.40% | 4.30% |
| Earnings growthi | -15.90% | 263.90% |
| EPS growthi | -15.90% | +263.90% |
| FCF margini | +10.34% | +6.86% |
| Operating margini | 16.56% | 20.25% |
| Profit margini | 12.75% | 21.58% |
| ROIC proxyi | 19.68% | 46.58% |
| Return on equityi | 19.68% | 46.58% |
| Dividend yieldi | 1.09% | 1.29% |
| Betai | 1.18 | 0.92 |
| Debt/equityi | 105.06 | 185.37 |
| Current ratioi | 1.24 | 1.21 |
| Quick ratioi | 0.70 | 0.76 |
Over the past year, ETN and HON have moved weakly in the same direction (correlation of 0.31), based on daily returns.
Lower drawdown and smaller single-period drops generally indicate a smoother ride, though they do not guarantee lower future risk.
| Period | Metric | ETN | HON |
|---|---|---|---|
| 1Y | Growthi | +17.99% | -2.58% |
| CAGRi | +18.01% | -2.58% | |
| Volatilityi | 38.23% | 26.94% | |
| Sharpe ratioi | 0.51 | -0.13 | |
| Sortino ratioi | 0.72 | -0.19 | |
| Max drawdowni | 18.55% | 17.17% | |
| Current drawdowni | 10.68% | 15.75% | |
| Avg drawdowni | 6.92% | 7.23% | |
| Ulcer Indexi | 8.69% | 8.67% | |
| Max daily dropi | 7.00% | 6.00% | |
| Max wkly dropi | 11.07% | 10.46% | |
| 5Y | Growthi | +167.45% | +1.67% |
| CAGRi | +21.78% | +0.33% | |
| Volatilityi | 31.63% | 22.68% | |
| Sharpe ratioi | 0.64 | -0.07 | |
| Sortino ratioi | 0.90 | -0.10 | |
| Max drawdowni | 34.46% | 25.21% | |
| Current drawdowni | 10.68% | 15.75% | |
| Avg drawdowni | 8.38% | 9.60% | |
| Ulcer Indexi | 11.04% | 11.11% | |
| Max daily dropi | 15.56% | 7.62% | |
| Max wkly dropi | 14.45% | 14.33% | |
| 10Y | Growthi | +648.80% | +127.63% |
| CAGRi | +22.32% | +8.58% | |
| Volatilityi | 30.71% | 24.05% | |
| Sharpe ratioi | 0.66 | 0.28 | |
| Sortino ratioi | 0.96 | 0.39 | |
| Max drawdowni | 44.55% | 43.01% | |
| Current drawdowni | 10.68% | 15.75% | |
| Avg drawdowni | 7.44% | 8.25% | |
| Ulcer Indexi | 10.24% | 10.67% | |
| Max daily dropi | 15.56% | 12.09% | |
| Max wkly dropi | 24.11% | 24.70% |
| Category | ETN | HON |
|---|---|---|
| Company | Eaton Corporation plc | Honeywell International Inc. |
| Sector | Industrials | Industrials |
| Industry | Specialty Industrial Machinery | Conglomerates |
| Core business | A diversified power management company providing electrical, hydraulic, and mechanical power products and systems used across industrial, utility, aerospace, and vehicle end markets. | A diversified technology and manufacturing company operating across aerospace technologies, building automation, energy and sustainability solutions, and industrial automation segments serving commercial, industrial, and government customers. |
| Investor focus | Data center and grid electrification demand for electrical products, segment margin trends, and backlog growth across the electrical business. | Aerospace segment recovery and margins, building automation software growth, and progress on planned portfolio separation initiatives. |
- Electrical segment is well positioned to benefit from data center buildout, grid modernization, and broader electrification trends
- Diversified portfolio across electrical, aerospace, vehicle, and hydraulics end markets provides multiple growth levers
- Strong backlog visibility in electrical products supports multi-year revenue growth confidence
- Diversified segment structure spans aerospace, building technologies, and industrial automation, balancing multiple end markets
- Aerospace segment benefits from both commercial aviation aftermarket demand and defense-related programs
- Building automation and energy solutions businesses provide exposure to sustainability and efficiency-driven capital spending
- Electrical segment growth expectations are tied to continued data center and infrastructure capital spending, which could moderate
- Vehicle and hydraulics segments remain exposed to more cyclical industrial and transportation end markets
- Premium valuation attached to the electrification growth narrative leaves less room for execution missteps
- Portfolio separation and restructuring initiatives introduce execution complexity and near-term uncertainty
- Industrial automation and building technologies segments remain exposed to broader capital spending cycles
- Complex multi-segment structure can make it harder for investors to cleanly value individual business lines
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