My go to place for initial research into a stock is the Dividend Champion spreadsheet maintained by David Fish. It is incredibly helpful for beginners and seasoned investors alike. I find much of the data very useful when comparing companies. I wanted to use information from this database to compare Donaldson (NYSE:DCI), Emerson (NYSE:EMR), and Honeywell (NYSE:HON) since they are all part of the industrial equipment industry.
Each of these stocks has its strengths and weaknesses but by assigning points across a variety of categories, I aim to arrive at a winner of sorts. For each metric, the best company will get 3 points, followed by 2 for second, and a single point for the worst number.
Each category will be equally weighted, but could be manipulated based on your goals. For example, if dividend history is of utmost importance, each score in that category could be multiplied by 1.5 to award 4.5 points for first, 3 for second, and 1.5 for third. By the same token, if you find the Graham number less critical, each value could by multiplied by 0.7 to reduce its effect on the final total.
