HON vs MSFT: Which Is the Better Buy?
Side-by-side comparison of Honeywell International Inc. and Microsoft Corporation — fair value, conviction, valuation metrics, and QuantHub research signals.
Updated 2026-04-11.
Honeywell International Inc. · Industrials
$235.04
-9.9% upside to fair value
Med Conviction
Grade B
VS
Microsoft Corporation · Technology
$372.20
+32.4% upside to fair value
High Conviction
Grade A
QuantHub Verdict
MSFT has more upside to fair value
(+32.4%).
MSFT trades at a lower forward P/E
(22.0x).
These are model outputs — not personalized investment advice.
See all research →
Valuation & Fundamentals
| Metric |
HON |
MSFT |
| Current Price |
$235.04 |
$372.20 |
| Fair Value Estimate |
$211.73 |
$493.00 |
| Upside to Fair Value |
-9.9%
|
+32.4%
|
| Market Cap |
$149.4B |
$2,763.6B |
| Forward P/E |
22.3x
|
22.0x
|
| EV / EBITDA |
16.9x
|
17.5x
|
| Price / Sales |
4.0x
|
9.1x
|
| Price / FCF |
27.7x
|
35.8x
|
| Revenue Growth YoY |
-2.7%
|
+14.9%
|
| Gross Margin |
36.9%
|
68.8%
|
| Operating Margin |
17.7%
|
45.6%
|
| Return on Equity |
33.28%
|
29.6%
|
| Dividend Yield |
1.92% |
0.94% |
| FCF Yield |
3.61%
|
2.8%
|
| Analyst Consensus |
Buy
|
Strong Buy
|
Investment Thesis
Honeywell is a diversified industrial conglomerate in the final stages of a transformative three-way separation into Honeywell Aerospace, Solstice Advanced Materials, and a retained Automation entity, targeting Q3 2026 completion. The business generated 33% ROE and $5.4B in free cash flow on $37.4B revenue in FY2025, supported by a record $37B backlog with 23% organic order growth in Q4. At $235 …
Microsoft is the world's largest software company, operating a three-pillar empire across cloud (Azure), productivity (Office 365/Teams), and personal computing (Windows/Xbox). Azure is the second-largest cloud platform globally with 24% market share and growing at 38-39% in constant currency, while Microsoft Cloud revenue crossed $168.9B in FY2025. The stock has dropped 33% from its highs to $37…
Accumulation Zones
| Metric |
HON |
MSFT |
| Zone Low |
$158.80 |
$370.00 |
| Zone High |
$179.97 |
$419.00 |
| In Buy Zone? |
No
|
Yes
|