Honeywell International Inc (HON) is undervalued and Otter Tail Corp (OTTR) is slightly undervalued.
Against our estimates of intrinsic value, HON trades at the wider discount: a margin of safety of +43%, against +17% for OTTR.
Values as of the 22 Sept 2026 close.
Discounting its cash flows at 8.2% (average of 3 methods) values the shares at $368.94; the price of $211.85 is 43% below that value, and 78% of that value comes from beyond year five.
Leak Score 90/100 on 9 of 12 signals
Discounting its cash flows at 7.4% (average of 3 methods) values the shares at $108.73; the price of $90.23 is 17% below that value, and 82% of that value comes from beyond year five.
Leak Score 49/100 on 3 of 12 signals
| Metric | HON | OTTR |
|---|---|---|
| Verdict | Undervalued | Slightly undervalued |
| Price | $211.85 | $90.23 |
| Intrinsic value | $368.94 | $108.73 |
| Margin of safety | +43% | +17% |
| Leak Score | 90/100 (9/12) | 49/100 (3/12) |
| Market cap | $67.1B | $3.8B |
| Revenue growth, 5 years | 2.8% | 7.9% |
| Operating margin | 19.2% | 24.6% |
| Net margin | 22.1% | 14.8% |
| Return on equity | 49.9% | 10.7% |
| Debt to equity | 1.89 | 0.67 |
| P/E | 7.8x | 19.5x |
| Forward P/E | 21.2x | 17.3x |
| P/B | 3.6x | 2.0x |
| Dividend yield | 2.1% | 2.5% |