Honeywell International Inc. (New York symbol HON) recently spun off two of its smaller operations—Garrett Motion and Resideo Technologies. Both stocks are down since they become independent firms. Slow starts, however, are typical for new spinoffs, and we like their prospect.

GARRETT MOTION INC. $15 (New York symbol GTX; Shares outstanding: 74.0 million; Market cap: $1.1 billion; No dividends paid; Takeover Target Rating: Medium; www.garrettmotion.com) makes turbochargers for car and truck engines. Major customers include Ford, Volkswagen, Mercedes-Benz, Renault, BMW, Citroen and Hyundai.

On October 1, 2018, Honeywell investors received one Garrett share for every 10 shares they held.

Garrett’s sales rose 9.0%, to $3.38 billion in 2018 from $3.10 billion in 2017. If you exclude favourable foreign exchange rates, sales rose 6%. Most that gain is due to the launch of new products for gasoline-powered cars. If you factor out unusual items, earnings improved 4.1%, to $4.05 a share from $3.89.

The company spent $128 million (or 3.8% of sales) on research in 2018. That’s up 7.6% from $119 million (or 3.8% of sales) in 2017. The spending will help Garrett profit as carmakers expand the use to turbochargers to reduce the size of their engines and cut harmful emissions.

The stock has slumped from $22 on its first day of trading to its current price. It now trades at just 4.2 times the company’s projected 2019 earnings of $3.53 a share.

That low p/e reflects Garrett’s long-term debt of $1.6 billion (as of December 31, 2018), which is a high 1.4 times its market cap. It also held cash of $196 million.

As well, the new company has roughly $1.4 billion in asbestos liabilities related to Bendix, a former subsidiary of Honeywell. While Honeywell is responsible for those liabilities, Garrett will have to pay Honeywell up to $175 million a year to cover lawsuit payments.

Garrett is a buy, but only for aggressive investors.

RESIDEO TECHNOLOGIES INC. $21 (New York symbol REZI; Shares outstanding: 122.5 million; Market cap: $2.6 billion; No dividends paid; Takeover Target Rating: Medium; www.resideo.com) makes heating, ventilation and air-conditioning equipment. It also distributes fire-protection and building security products.

On October 29, 2018, Honeywell shareholders received one share of Resideo for every six shares they held.

Like Garrett, Resideo will also assume responsibility for some of Honeywell’s environmental obligations. Those payments will total no more than $140 million a year.

Resideo’s sales rose 6.8%, to $4.83 billion in 2018 from $4.52 billion in 2017. If you exclude unusual items, earnings jumped 23.5%, to $2.47 a share from $2.00.

The company ended 2018 with long-term debt of $1.2 billion, or 46% of its market cap. It also held cash of $265 million.

Resideo plans to spend $135 million on research in 2019. It will focus that spending on products that improve indoor air quality and detect water leaks. Those new products should increase this year’s sales by 2% to 5%. However, the midpoint of that range—3.5%—is less than the earlier forecast of 4% growth.

The stock is down from its peak of $32.55 in October 2018. It now trades at just 10.8 times the likely 2019 earnings of $1.95 a share.

Resideo is a buy for aggressive investors.