Quick verdict: DE vs HON in 2026

Honeywell International (HON) appears to hold a discernible edge over Deere & Company (DE) in this 2026 stock comparison, leading on 8 of 11 comparable metrics according to our analysis. HON emerges as the growth leader with a less severe revenue decline of -2.7% compared to DE’s -11.6%, and also stands out as the value leader with a lower P/E ratio and a DCF valuation much closer to its current price. It’s also the margin leader with a higher net margin, and the clear analyst favorite with a higher percentage of ‘Buy’ ratings. Conversely, DE offers the most potential upside based on current analyst price targets. This is not investment advice.

DE vs HON: key metrics side by side

Full side-by-side comparison of DE and HON across valuation, profitability, growth and analyst sentiment. Data updated 2026-04-05.

DE vs HON valuation comparison

When assessing the DE vs HON valuation, several key metrics provide insight. Deere & Company (DE) currently trades at a P/E ratio of 32.33x, which is notably higher than Honeywell International (HON) at 28.36x. This suggests that investors are paying a premium for DE’s earnings compared to HON’s. From a price-to-book perspective, DE presents a P/B ratio of 5.92x, which is considerably lower than HON’s 9.44x. This indicates that DE’s market valuation relative to its book value is more attractive than HON’s.

However, a deeper dive into valuation using a Discounted Cash Flow (DCF) model reveals a significant divergence. HON’s DCF calculation suggests an implied undervaluation of only -3.8% from its current price, implying it’s trading relatively close to its intrinsic value. In stark contrast, DE’s DCF indicates a substantial overvaluation of -62.8%, suggesting its current stock price is significantly above its estimated fair value. Therefore, based on a combination of P/E and DCF, Honeywell appears to be the more reasonably valued stock at present, despite Deere’s lower P/B ratio.

DE vs HON growth comparison

Analyzing the DE vs HON growth trajectories, both companies have experienced negative revenue growth year-over-year. Deere & Company (DE) reported a revenue growth of -11.6%, reflecting a significant downturn in its top-line performance. In comparison, Honeywell International (HON) demonstrated a more resilient performance with a revenue growth rate of -2.7% over the same period. While both figures are negative, HON clearly exhibits stronger momentum and a more moderate decline in revenue.

Looking at the overall scale, DE maintains a larger revenue base at $44.66 billion compared to HON’s $37.44 billion. Despite DE’s larger size, its revenue contraction is more pronounced. The superior revenue growth (or less severe decline) for HON points to a stronger underlying demand or more effective market strategies in the current environment. This indicates that for investors prioritizing growth momentum, even in a challenging market, Honeywell appears to have the more favorable short-term trajectory.

DE vs HON profitability

When examining DE vs HON profitability, we observe distinct strengths. Honeywell International (HON) showcases a stronger net margin of 12.74%, indicating that it converts a larger percentage of its revenue into net income compared to Deere & Company (DE), which has a net margin of 10.46%. This suggests that HON is more efficient at managing its costs and generating profit from its sales. Both companies have an N/A% for Return on Equity (ROE) in the provided data, so this metric cannot be directly compared.

However, Deere & Company (DE) slightly edges out Honeywell in terms of EBITDA margin, reporting 25.08% compared to HON’s 23.51%. This suggests that DE is slightly more efficient at generating operating profit before accounting for depreciation, amortization, interest, and taxes. Furthermore, HON demonstrates a superior Free Cash Flow (FCF) yield of 3.7%, outperforming DE’s 2.3%. A higher FCF yield typically implies that a company is generating more cash relative to its market capitalization, which is a positive sign for financial health and flexibility. Overall, while DE has a higher EBITDA margin, HON’s stronger net margin and significantly better FCF yield position it as generally more profitable from a shareholder’s perspective.

Analyst ratings: DE vs HON

The analyst community shows a clear preference in their ratings for DE vs HON. Honeywell International (HON) garners significantly more optimism, with 60.7% of the 28 analysts covering the stock issuing a ‘Buy’ rating, leading to a consensus ‘Buy’. Their collective price target for HON stands at $244.46, representing a potential upside of +6.5% from its current price. This indicates a strong belief in HON’s current prospects and future performance among professional analysts.

In contrast, Deere & Company (DE) has a lower percentage of ‘Buy’ ratings at 41.3% from a larger pool of 46 analysts, resulting in a consensus ‘Hold’. While the sentiment is less bullish, the price target for DE is $685.17, which implies a more substantial potential upside of +19.0% from its current price. This suggests that while fewer analysts are advocating an immediate ‘Buy’ for DE, those who do see significant room for appreciation. Despite the higher potential upside for DE, the broader consensus favors HON, reflecting a more widespread positive sentiment.

Should I buy DE or HON stock in 2026?

For investors prioritizing growth, evaluating “should I buy DE or HON stock in 2026” based on recent performance, Honeywell International (HON) appears to be the stronger choice. While both companies are navigating challenging market conditions reflected in negative revenue growth, HON’s year-over-year revenue decline of -2.7% is considerably less severe than DE’s -11.6%. This indicates that HON has better maintained its top-line performance, suggesting greater resilience and potentially stronger underlying demand for its diverse industrial offerings compared to Deere’s more concentrated focus on agriculture and construction equipment.

When considering value, the comparison becomes nuanced. HON presents a more attractive valuation based on its P/E ratio of 28.36x, which is lower than DE’s 32.33x. Furthermore, HON’s DCF valuation is much closer to its current price, indicating an undervaluation of only -3.8%, suggesting it is trading near its intrinsic value. In contrast, DE’s DCF implies a significant overvaluation of -62.8%. However, DE does offer a lower Price-to-Book ratio of 5.92x compared to HON’s 9.44x. For value investors prioritizing P/E and DCF, HON might be the better play, while those who favor P/B could lean towards DE.

For income-focused investors, the choice between DE and HON is straightforward based on dividend yields. Honeywell International (HON) offers a dividend yield of 0.02%, which, while modest, is double that of Deere & Company (DE) at 0.01%. Both yields are very low, suggesting neither stock is primarily an income play, but HON technically provides a slightly higher payout. Ultimately, the decision of “should I buy DE or HON stock in 2026” hinges on an individual investor’s specific objectives regarding growth, value, and income. This is not investment advice; always conduct thorough personal research.

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