ALG vs. HON

Last updated Jun 3, 2026

ALG (Alamo Group Inc.) and HON (Honeywell International Inc) are both stocks. Both are in the Industrials sector — ALG in Farm & Heavy Construction Machinery, HON in Conglomerates. Over the past 10 years, ALG returned 10.01%/yr vs 10.81%/yr for HON. At a 0.30 correlation, their price movements are largely independent.

Performance

ALG vs. HON - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Alamo Group Inc. (ALG) and Honeywell International Inc (HON). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

In the year-to-date period, ALG achieves a -8.66% return, which is significantly lower than HON's 21.84% return. Over the past 10 years, ALG has underperformed HON with an annualized return of 10.01%, while HON has yielded a comparatively higher 10.81% annualized return.

ALG

• 1D: 1.94%
• 1M: -10.85%
• YTD: -8.66%
• 6M: -5.30%
• 1Y: -22.49%
• 3Y*: -4.50%
• 5Y*: 0.72%
• 10Y*: 10.01%

HON

• 1D: -0.55%
• 1M: 11.30%
• YTD: 21.84%
• 6M: 23.06%
• 1Y: 13.08%
• 3Y*: 10.21%
• 5Y*: 3.85%
• 10Y*: 10.81%

*Multi-year figures are annualized to reflect compound growth (CAGR)

ALG vs. HON - Yearly Performance Comparison

	2026 (YTD)	2025	2024	2023	2022	2021	2020	2019	2018	2017
ALG Alamo Group Inc.	-8.66%	-9.12%	-11.07%	49.19%	-3.27%	7.09%	10.41%	63.18%	-31.19%	49.01%
HON Honeywell International Inc	21.84%	-6.37%	10.02%	0.02%	4.90%	-0.29%	22.97%	36.70%	-8.27%	35.10%

Correlation

The correlation between ALG and HON is 0.44, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.44
Correlation (3Y) Calculated over the trailing 3-year period	0.43
Correlation (5Y) Calculated over the trailing 5-year period	0.49
Correlation (10Y) Calculated over the trailing 10-year period	0.49
Correlation (All Time) Calculated using the full available price history since Mar 22, 1993	0.31

The correlation between ALG and HON shifts across timeframes, from 0.30 (all time) to 0.49 (5 years), reflecting how their relationship changes across market environments.

Fundamentals

Market Cap ALG : $1.85B HON : $150.17B
EPS ALG : $8.37 HON : $6.42
PE Ratio ALG : 18.25 HON : 36.66
PS Ratio ALG : 1.13 HON : 4.09
PB Ratio ALG : 1.58 HON : 7.05
Total Revenue (TTM) ALG : $1.63B HON : $36.76B
Gross Profit (TTM) ALG : $399.78M HON : $13.58B
EBITDA (TTM) ALG : $232.00M HON : $6.55B

Return for Risk

ALG vs. HON — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

ALG

ALG Risk / Return Rank: 14
ALG Sharpe Ratio Rank: 11
ALG Sortino Ratio Rank: 13
ALG Omega Ratio Rank: 13
ALG Calmar Ratio Rank: 18
ALG Martin Ratio Rank: 17

HON

HON Risk / Return Rank: 56
HON Sharpe Ratio Rank: 60
HON Sortino Ratio Rank: 54
HON Omega Ratio Rank: 52
HON Calmar Ratio Rank: 57
HON Martin Ratio Rank: 55

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

ALG vs. HON - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Alamo Group Inc. (ALG) and Honeywell International Inc (HON). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.

	ALG	HON	Difference
Sharpe ratio Return per unit of total volatility	-0.72	0.60	-1.32
Sortino ratio Return per unit of downside risk	-0.86	1.03	-1.89
Omega ratio Gain probability vs. loss probability	0.89	1.13	-0.24
Calmar ratio Return relative to maximum drawdown	-0.62	0.78	-1.40
Martin ratio Return relative to average drawdown	-1.08	1.33	-2.41
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

ALG vs. HON - Sharpe Ratio Comparison

The current ALG Sharpe Ratio is -0.72, which is lower than the HON Sharpe Ratio of 0.60. The chart below compares the historical Sharpe Ratios of ALG and HON, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	ALG	HON	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.72	0.60	-1.32
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	0.02	0.18	-0.15
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.32	0.46	-0.14
Sharpe Ratio (All Time) Calculated using the full available price history	0.25	0.29	-0.04

Drawdowns

ALG vs. HON - Drawdown Comparison

The maximum ALG drawdown since its inception was -69.23%, roughly equal to the maximum HON drawdown of -70.09%. Use the drawdown chart below to compare losses from any high point for ALG and HON.

Drawdown Indicators

	ALG	HON	Difference
Max Drawdown Largest peak-to-trough decline	-69.23%	-70.09%	+0.86%
Max Drawdown (1Y) Largest decline over 1 year	-36.30%	-16.03%	-20.27%
Max Drawdown (3Y) Largest decline over 3 years	-36.30%	-22.10%	-14.20%
Max Drawdown (5Y) Largest decline over 5 years	-36.30%	-27.13%	-9.17%
Max Drawdown (10Y) Largest decline over 10 years	-42.47%	-43.01%	+0.54%
Current Drawdown Current decline from peak	-33.92%	-4.64%	-29.28%
Average Drawdown Average peak-to-trough decline	-19.63%	-20.28%	+0.65%
Ulcer Index Depth and duration of drawdowns from previous peaks	20.64%	9.42%	+11.22%

Volatility

ALG vs. HON - Volatility Comparison

Alamo Group Inc. (ALG) has a higher volatility of 9.29% compared to Honeywell International Inc (HON) at 6.90%. This indicates that ALG's price experiences larger fluctuations and is considered to be riskier than HON based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	ALG	HON	Difference
Volatility (1M) Calculated over the trailing 1-month period	9.29%	6.90%	+2.39%
Volatility (6M) Calculated over the trailing 6-month period	27.45%	16.15%	+11.30%
Volatility (1Y) Calculated over the trailing 1-year period	31.36%	21.94%	+9.42%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	29.50%	21.57%	+7.93%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	31.19%	23.44%	+7.75%

Dividends

ALG vs. HON - Dividend Comparison

ALG's dividend yield for the trailing twelve months is around 0.84%, less than HON's 1.97% yield.

Position	TTM	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015
ALG Alamo Group Inc.	0.84%	0.71%	0.56%	0.42%	0.51%	0.38%	0.38%	0.38%	0.57%	0.35%	0.47%	0.61%
HON Honeywell International Inc	1.97%	2.25%	1.93%	1.99%	1.85%	1.81%	1.71%	1.90%	2.24%	1.79%	2.11%	2.07%

Financials

ALG vs. HON - Profitability Comparison

The chart below illustrates the profitability comparison between Alamo Group Inc. and Honeywell International Inc over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

ALG - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Alamo Group Inc. reported a gross profit of 104.81M and revenue of 417.15M. Therefore, the gross margin over that period was 25.1%.

HON - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Honeywell International Inc reported a gross profit of 3.54B and revenue of 9.14B. Therefore, the gross margin over that period was 38.7%.

ALG - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Alamo Group Inc. reported an operating income of 42.16M and revenue of 417.15M, resulting in an operating margin of 10.1%.

HON - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Honeywell International Inc reported an operating income of 886.00M and revenue of 9.14B, resulting in an operating margin of 9.7%.

ALG - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Alamo Group Inc. reported a net income of 29.18M and revenue of 417.15M, resulting in a net margin of 7.0%.

HON - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Honeywell International Inc reported a net income of 821.00M and revenue of 9.14B, resulting in a net margin of 9.0%.

Frequently Asked Questions

Can I hold both ALG and HON in my portfolio?

ALG and HON have a correlation of 0.44, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, ALG or HON?

ALG has higher volatility (9.29%) compared to HON (6.90%). In terms of maximum drawdown, ALG dropped -69.23% vs HON's -70.09%.

Which has better risk-adjusted returns?

HON currently has the higher Sharpe Ratio (0.60 vs -0.72), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.