General Electric Company (GE), Honeywell International Inc. (HON), Illinois Tool Works Inc. (ITW): The Best Large-Cap Industrials to Own

I recommend Illinois Tool Works Inc. (NYSE:ITW) shares for those seeking consistently increasing profits and an overall quality conglomerate manufacturing company.

Commercial building and aerospace

I have blogged about United Technologies Corporation (NYSE:UTX) before, most recently with the posting “United Technologies and Aircraft Purchases.” The premise of that article, that investments in its commercial aircraft product offerings, particularly through the buyout of Goodrich, will support top and bottom-line growth in the near-term, remains intact.

Meantime, its elevator, HVAC, and security product categories may also benefit the bottom line over the coming years, as a commercial/non-residential construction market upturn might well occur to a greater extent, as the residential market continues to make strides.

United Technologies Corporation (NYSE:UTX) shares are a Dow component, like GE, and they should fare well over the long-term. The stock yields about 2.30%, offers a return on equity of 24.6%, and is relatively low beta for an industrial at 1.16, meaning it will likely not exhibit much volatility.

Wrapping it all up

For purposes of comparison, I will close with a rundown of the market valuations and price-to-equity valuations of each stock in the group. The best choice of the four as a portfolio addition for the long-term, in my view, is United Technologies Corporation (NYSE:UTX). They are all worthwhile holdings for most investors.

The article The 4 Best Large-Cap Industrials to Own originally appeared on Fool.com and is written by Damon Churchwell.

Damon Churchwell has no position in any stocks mentioned. The Motley Fool recommends Illinois Tool Works. The Motley Fool owns shares of General Electric Company. Damon is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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