WallStSmart

Compass Diversified Holdings (CODI)vsHoneywell International Inc (HON)

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Smart Verdict

WallStSmart Research — data-driven comparison

Honeywell International Inc generates 1961% more annual revenue ($38.06B vs $1.85B). HON leads profitability with a 21.6% profit margin vs -12.3%. CODI appears more attractively valued with a PEG of 2.65. HON earns a higher WallStSmart Score of 69/100 (B-).

CODI

Avoid

31

out of 100

Grade: F

Growth: 2.7Profit: 3.0Value: 5.7Quality: 4.5
Piotroski: 4/9Altman Z: 0.22

HON

Strong Buy

69

out of 100

Grade: B-

Growth: 6.0Profit: 8.0Value: 4.7Quality: 5.5
Piotroski: 4/9Altman Z: 2.05
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CODIUndervalued (+75.2%)

Margin of Safety

+75.2%

Fair Value

$26.87

Current Price

$11.00

$15.87 discount

UndervaluedFair: $26.87Overvalued
HONSignificantly Overvalued (-28.5%)

Margin of Safety

-28.5%

Fair Value

$189.60

Current Price

$246.21

$56.61 premium

UndervaluedFair: $189.60Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CODI0 strengths · Avg: 0/10

No standout strengths identified

HON6 strengths · Avg: 9.3/10
P/E RatioValuation
9.6x10/10

Attractively priced relative to earnings

Return on EquityProfitability
32.6%10/10

Every $100 of equity generates 33 in profit

EPS GrowthGrowth
263.9%10/10

Earnings expanding 263.9% YoY

Market CapQuality
$78.64B9/10

Large-cap with strong market position

Profit MarginProfitability
21.6%9/10

Keeps 22 of every $100 in revenue as profit

Operating MarginProfitability
20.3%8/10

Strong operational efficiency at 20.3%

Areas to Watch

CODI4 concerns · Avg: 2.5/10
Market CapQuality
$810.29M3/10

Smaller company, higher risk/reward

Operating MarginProfitability
4.3%3/10

Operating margin of 4.3%

PEG RatioValuation
2.652/10

Expensive relative to growth rate

Return on EquityProfitability
-51.0%2/10

ROE of -51.0% — below average capital efficiency

HON3 concerns · Avg: 3.0/10
Revenue GrowthGrowth
4.3%4/10

4.3% revenue growth

Debt/EquityHealth
1.143/10

Elevated debt levels

PEG RatioValuation
3.932/10

Expensive relative to growth rate

Comparative Analysis Report

WallStSmart Research

Bull Case : CODI

CODI has a balanced fundamental profile.

Bull Case : HON

The strongest argument for HON centers on P/E Ratio, Return on Equity, EPS Growth. Profitability is solid with margins at 21.6% and operating margin at 20.3%.

Bear Case : CODI

The primary concerns for CODI are Market Cap, Operating Margin, PEG Ratio. Debt-to-equity of 4.64 is elevated, increasing financial risk.

Bear Case : HON

The primary concerns for HON are Revenue Growth, Debt/Equity, PEG Ratio.

Key Dynamics to Monitor

CODI profiles as a turnaround stock while HON is a value play — different risk/reward profiles.

CODI carries more volatility with a beta of 1.25 — expect wider price swings.

HON is growing revenue faster at 4.3% — sustainability is the question.

HON generates stronger free cash flow (961M), providing more financial flexibility.

Bottom Line

HON scores higher overall (69/100 vs 31/100), backed by strong 21.6% margins. CODI offers better value entry with a 75.2% margin of safety. Both earn "Strong Buy" and "Avoid" ratings respectively — the choice depends on your investment horizon and risk tolerance.

This analysis is generated from publicly available financial data. Not financial advice.

Compass Diversified Holdings

INDUSTRIALS · CONGLOMERATES · USA

Compass Diversified Holdings (CODI) is a leading private equity firm that specializes in the acquisition and management of a diverse portfolio of middle-market companies across sectors such as consumer products, industrials, and outdoor goods. The firm is committed to operational excellence and value creation, employing strategic enhancements to drive sustainable growth and performance improvements across its investments. With a strong focus on long-term value and attractive risk-adjusted returns, CODI leverages its extensive industry expertise and disciplined investment approach to deliver compelling opportunities for institutional investors in the alternative investment landscape.

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Honeywell International Inc

INDUSTRIALS · CONGLOMERATES · USA

Honeywell International Inc. is an American publicly traded, multinational conglomerate headquartered in Charlotte, North Carolina. It primarily operates in four areas of business: aerospace, building technologies, performance materials and technologies (PMT), and safety and productivity solutions (SPS).

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