WallStSmart

Honeywell International Inc (HON)vsSAP SE ADR (SAP)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Honeywell International Inc generates 1% more annual revenue ($37.66B vs $37.34B). SAP leads profitability with a 19.6% profit margin vs 10.9%. SAP appears more attractively valued with a PEG of 0.73. SAP earns a higher WallStSmart Score of 62/100 (C+).

HON

Buy

55

out of 100

Grade: C

Growth: 3.3Profit: 7.0Value: 4.3Quality: 5.0

SAP

Buy

62

out of 100

Grade: C+

Growth: 6.0Profit: 8.5Value: 5.3Quality: 7.5
Piotroski: 5/9Altman Z: 3.11
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for HON.

SAPSignificantly Overvalued (-16.9%)

Margin of Safety

-16.9%

Fair Value

$168.01

Current Price

$173.70

$5.69 premium

UndervaluedFair: $168.01Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HON3 strengths · Avg: 8.7/10
Market CapQuality
$135.04B9/10

Large-cap with strong market position

Return on EquityProfitability
24.3%9/10

Every $100 of equity generates 24 in profit

Operating MarginProfitability
21.0%8/10

Strong operational efficiency at 21.0%

SAP6 strengths · Avg: 9.2/10
Market CapQuality
$204.11B10/10

Mega-cap, among the largest globally

Operating MarginProfitability
30.0%10/10

Strong operational efficiency at 30.0%

Altman Z-ScoreHealth
3.1110/10

Safe zone — low bankruptcy risk

Debt/EquityHealth
0.189/10

Conservative balance sheet, low leverage

PEG RatioValuation
0.738/10

Growing faster than its price suggests

Free Cash FlowQuality
$3.27B8/10

Generating 3.3B in free cash flow

Areas to Watch

HON4 concerns · Avg: 4.0/10
PEG RatioValuation
1.974/10

Expensive relative to growth rate

P/E RatioValuation
34.0x4/10

Premium valuation, high expectations priced in

Price/BookValuation
9.9x4/10

Trading at 9.9x book value

Revenue GrowthGrowth
2.4%4/10

2.4% revenue growth

SAP0 concerns · Avg: 0/10

No major concerns identified

Comparative Analysis Report

WallStSmart Research

Bull Case : HON

The strongest argument for HON centers on Market Cap, Return on Equity, Operating Margin.

Bull Case : SAP

The strongest argument for SAP centers on Market Cap, Operating Margin, Altman Z-Score. Profitability is solid with margins at 19.6% and operating margin at 30.0%. PEG of 0.73 suggests the stock is reasonably priced for its growth.

Bear Case : HON

The primary concerns for HON are PEG Ratio, P/E Ratio, Price/Book.

Bear Case : SAP

No major red flags identified for SAP, but monitor valuation.

Key Dynamics to Monitor

HON profiles as a value stock while SAP is a mature play — different risk/reward profiles.

HON carries more volatility with a beta of 0.81 — expect wider price swings.

SAP is growing revenue faster at 6.0% — sustainability is the question.

SAP generates stronger free cash flow (3.3B), providing more financial flexibility.

Bottom Line

SAP scores higher overall (62/100 vs 55/100), backed by strong 19.6% margins. Both earn "Buy" and "Buy" ratings respectively — the choice depends on your investment horizon and risk tolerance.

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

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).

SAP SE ADR

TECHNOLOGY · SOFTWARE - APPLICATION · USA

SAP SE is a global enterprise application software company. The company is headquartered in Walldorf, Germany.

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