Quick wins for a faster PC:
Clear out junk files and repair common Windows errorsFree Scan →Scan for outdated or missing drivers - takes under a minuteDriver Scan →Parker-Hannifin and Honeywell are both diversified industrial companies with aerospace exposure, but they are not interchangeable businesses—and recent portfolio changes make a headline valuation comparison especially easy to misread. Parker reported 6.6% organic sales growth and a 27.3% adjusted segment operating margin for FY2026. Honeywell reported 4% organic sales growth in Industrial Automation for Q2 2026, a narrower measure from a business perimeter that has changed. At the October 2, 2026 close, Stock Analysis listed forward P/E ratios of 27.38 for Parker and 23.37 for Honeywell. Those figures are a dated snapshot, not a verdict on which stock is cheaper or more attractive.
What the two companies do
Parker-Hannifin and Honeywell both sell engineered products and systems into industrial and aerospace markets, but their reporting segments, end markets and corporate perimeters differ. Parker reports two broad segments; Honeywell’s 2026 segment structure reflects a realignment, while its aerospace business is also subject to a planned separation. The distinction matters when comparing growth, margins and valuation.
As an Amazon Associate I earn from qualifying purchases.
| Company | Reported business structure | Markets and products described in company filings |
|---|---|---|
| Parker-Hannifin | Diversified Industrial; Aerospace Systems | Engineered motion and control technologies and aftermarket support for aerospace and defense, industrial equipment, transportation, off-highway, energy, and HVAC and refrigeration markets. |
| Honeywell, 2025 reporting | Aerospace Technologies; Industrial Automation; Building Automation; Energy and Sustainability Solutions | Automation, building systems, energy and sustainability solutions, and aerospace. This is a historical segment presentation: Advanced Materials was spun off as Solstice Advanced Materials on October 30, 2025. |
| Honeywell, 2026 reporting | Aerospace Technologies; Building Automation; Process Automation and Technology; Industrial Automation | Business segments following a realignment effective in the first quarter of 2026. Honeywell’s 2026 filing also describes a planned separation of Honeywell Aerospace. |
Parker’s two segments encompass a wide range of components, systems and services rather than one directly comparable product line. Honeywell’s segment names and perimeter have changed across the periods covered here, so a figure drawn from its 2025 filing should not be treated as if it described the same business mix as a 2026 result. The relevant company disclosures are Parker’s FY2026 Form 10-K and annual results release, and Honeywell’s 2025 and 2026 filings and Q2 2026 earnings release.
Recommended Free Tools
What the latest results say—and what they do not
Parker: FY2026
Parker’s fiscal year ends June 30. Its August 6, 2026 annual results release reported record FY2026 sales, 6.6% organic sales growth and a 27.3% adjusted segment operating margin. The margin is an adjusted segment measure, not a GAAP consolidated operating margin; do not compare it directly with a differently defined Honeywell margin.
#1 Best Overall
Parker’s FY2027 guidance excludes the pending acquisitions of Filtration Group and CIRCOR’s Commercial and Defense Aerospace Business. Those transactions should therefore be treated as prospective portfolio additions, not as businesses already contributing to the guidance.
Honeywell: Q2 2026 and the changing perimeter
Honeywell’s Q2 2026 earnings release reported 4% organic sales growth in Industrial Automation. That is a segment-level growth figure, not a measure of total Honeywell sales and not a like-for-like counterpart to Parker’s company-wide organic growth figure. The release defines Honeywell Technologies results as excluding results attributable to Honeywell Aerospace and related perimeter adjustments. Combining those results uncritically with earlier consolidated Honeywell figures would mix different corporate perimeters.
Honeywell’s 2025 Form 10-K reported a backlog of $37.475 billion at December 31, 2025, and said approximately 57% of remaining performance obligations were expected to be recognized as 2026 revenue. These are dated figures from before subsequent reporting and reflect the company’s then-current business presentation; they are not a current backlog measure or a substitute for realized sales.
Crashes, No Sound, or Screen Glitches?
Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minuteWindows Errors? Fix Them Before They Spread
Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallHow to compare growth and profitability fairly
The reported growth figures offer context, but they cover different periods and levels of the business: Parker’s full FY2026 company results versus Honeywell Industrial Automation’s Q2 2026 segment results. A fair comparison needs to align the period, scope and definition before interpreting the numbers.
Rank #3
- Match the reporting period. Parker’s FY2026 ended June 30, 2026. Honeywell’s Q2 2026 is a calendar-quarter result. A fiscal-year result and a single-quarter segment result do not establish relative long-run growth.
- Match the perimeter. Check whether a Honeywell figure includes Aerospace, reflects the 2026 realignment, or belongs to the earlier 2025 segment structure. Treat Parker’s pending acquisitions as outside the cited guidance.
- Match the metric. Organic sales growth is not the same as reported sales growth, and adjusted segment operating margin is not the same as GAAP consolidated operating margin. Record each measure’s definition and adjustment basis from the relevant release.
- Account for end-market mix. Parker’s disclosed markets span industrial, transportation, off-highway, energy, HVAC and aerospace applications. Honeywell’s segment mix includes automation, buildings, process technology and aerospace, with the mix changing as portfolio actions take effect. Different exposure can lead to different growth patterns.
The cited results do not establish a complete, same-period comparison of margins, cash generation or balance-sheet strength. For those questions, use filings to reconcile continuing operations, corporate costs, separation effects and adjusted measures on a consistent basis rather than inferring performance from the two growth figures.
Corporate changes that affect the comparison
Honeywell: Solstice spin-off and planned aerospace separation
Honeywell spun off Advanced Materials as Solstice Advanced Materials on October 30, 2025. Its 2026 filing describes a segment realignment effective in the first quarter of 2026 and a planned separation of Honeywell Aerospace. These actions change what belongs inside the Honeywell equity and how historical results should be read. A planned separation is not a completed transaction, so do not treat post-separation results or valuation as though they are already established by the cited disclosures.
Honeywell’s 2025 filing also described plans to realign certain industrial and energy-related businesses and to evaluate strategic alternatives for Productivity Solutions and Services and Warehouse and Workflow Solutions. Those disclosures indicate potential portfolio change; they do not, by themselves, establish that any particular action has since been completed.
Parker: pending acquisitions
Parker’s FY2027 guidance excludes pending acquisitions of Filtration Group and CIRCOR’s Commercial and Defense Aerospace Business. Their prospective addition could change the company’s mix, but the cited guidance does not count them as current operating contributors. Keep announced or pending transactions separate from reported results when comparing the companies.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What the forward P/E snapshot shows
At the October 2, 2026 close, Stock Analysis listed forward P/E ratios of 27.38 for Parker and 23.37 for Honeywell. The same provider listed Parker’s market capitalization at about $122.7 billion on its ratios page and Honeywell’s at about $67.8 billion on its statistics page. These are provider figures at a particular date; they can change with share prices, earnings estimates, share counts and data methodology. Market capitalization indicates equity scale, not whether a stock is cheap.
| Measure | Parker-Hannifin | Honeywell | How to read it |
|---|---|---|---|
| Forward P/E at October 2, 2026 close | 27.38 | 23.37 | Stock Analysis provider estimates for that date, not company-published operating statistics or an intrinsic-value conclusion. |
| Market capitalization shown by Stock Analysis | About $122.7 billion, on its ratios page | About $67.8 billion, on its statistics page | Provider figures from pages cited in the October 2, 2026 snapshot. Different market capitalizations do not establish relative cheapness. |
A lower forward P/E means the share price is lower relative to that provider’s forecast earnings per share. It does not show whether the forecast is comparable, whether earnings are normalized, or whether the equity perimeter is stable. Honeywell’s portfolio changes and Parker’s pending acquisitions make those checks particularly important.
A practical framework for deciding whether either valuation is compelling
- Refresh the market inputs. Use a single date for share price and diluted share count. The October 2, 2026 figures are a snapshot, not a live valuation.
- Reconcile earnings to the business being valued. Identify the forecast period, continuing-business perimeter and treatment of spin-offs, planned separations, acquisition contributions and one-time items. Do not mix pre- and post-transaction businesses.
- Compare more than P/E. Review enterprise value against a consistent earnings measure, such as EBITDA, and compare free-cash-flow yield if the underlying cash-flow definitions and periods align. A P/E multiple alone omits debt and can magnify differences in forecast earnings.
- Check balance-sheet and cash-flow evidence. Compare debt, interest burden, capital expenditure, cash generation and acquisition funding in current filings. The figures summarized here do not support a full, same-perimeter balance-sheet comparison, so no ranking on leverage or cash generation follows from this snapshot.
- Test a range of normalized outcomes. Examine how valuation changes under plausible growth and margin assumptions rather than relying on one provider’s forward estimate. The available figures do not supply a fully normalized, same-date sum-of-the-parts valuation for either company.
These checks can help determine whether a valuation fits an investor’s own assumptions, but the cited figures do not establish that one stock is a better value or a buy. That conclusion would require current market inputs and a consistent earnings and debt reconciliation for the businesses that remain in each company.
Free tools Windows power users keep installed
One-click scans. No signup required.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
