WallStSmart

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

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Honeywell International Inc generates 1939% more annual revenue ($37.66B vs $1.85B). HON leads profitability with a 10.9% profit margin vs -12.3%. HON appears more attractively valued with a PEG of 2.08. HON earns a higher WallStSmart Score of 53/100 (C-).

CODI

Avoid

31

out of 100

Grade: F

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

HON

Buy

53

out of 100

Grade: C-

Growth: 3.3Profit: 7.0Value: 4.3Quality: 5.5
Piotroski: 4/9Altman Z: 2.05
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

CODIUndervalued (+75.4%)

Margin of Safety

+75.4%

Fair Value

$27.07

Current Price

$9.85

$17.22 discount

UndervaluedFair: $27.07Overvalued

Intrinsic value data unavailable for HON.

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

CODI0 strengths · Avg: 0/10

No standout strengths identified

HON2 strengths · Avg: 8.5/10
Market CapQuality
$145.42B9/10

Large-cap with strong market position

Operating MarginProfitability
21.0%8/10

Strong operational efficiency at 21.0%

Areas to Watch

CODI4 concerns · Avg: 2.5/10
Market CapQuality
$762.89M3/10

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

HON4 concerns · Avg: 4.0/10
PEG RatioValuation
2.084/10

Expensive relative to growth rate

P/E RatioValuation
36.4x4/10

Premium valuation, high expectations priced in

Price/BookValuation
10.6x4/10

Trading at 10.6x book value

Revenue GrowthGrowth
2.4%4/10

2.4% revenue growth

Comparative Analysis Report

WallStSmart Research

Bull Case : CODI

CODI has a balanced fundamental profile.

Bull Case : HON

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

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 PEG Ratio, P/E Ratio, Price/Book. Debt-to-equity of 1.72 is elevated, increasing financial risk.

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 2.4% — sustainability is the question.

CODI generates stronger free cash flow (19M), providing more financial flexibility.

Bottom Line

HON scores higher overall (53/100 vs 31/100). CODI offers better value entry with a 75.4% margin of safety. Both earn "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 prominent private equity firm that focuses on acquiring and managing a diverse portfolio of middle-market companies spanning various sectors, including consumer products, industrials, and outdoor goods. With a commitment to operational excellence and strategic enhancements, CODI actively drives sustainable growth and performance improvement across its investments. Leveraging extensive industry expertise and a disciplined investment framework, the firm is well-positioned within the alternative investment landscape, dedicated to creating long-term value and attractive risk-adjusted returns for institutional investors.

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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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