Head-To-Head Contrast: Honda Motor (HMC) and Its Peers

Honda Motor (NYSE:HMC) is one of 119 publicly-traded companies in the “Automobiles” industry, but how does it weigh in compared to its competitors? We will compare Honda Motor to related businesses based on the strength of its institutional ownership, analyst recommendations, profitability, dividends, earnings, valuation and risk.

Volatility and Risk

Honda Motor has a beta of 0.42, suggesting that its stock price is 58% less volatile than the S&P 500. Comparatively, Honda Motor’s competitors have a beta of 0.96, suggesting that their average stock price is 4% less volatile than the S&P 500.

Analyst Recommendations

This is a summary of recent recommendations for Honda Motor and its competitors, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Honda Motor	2	2	0	1	2.00
Honda Motor Competitors	2036	5028	6301	185	2.34

Honda Motor currently has a consensus target price of $25.00, suggesting a potential downside of 21.45%. As a group, “Automobiles” companies have a potential upside of 79.59%. Given Honda Motor’s competitors stronger consensus rating and higher possible upside, analysts clearly believe Honda Motor has less favorable growth aspects than its competitors.

Dividends

Honda Motor pays an annual dividend of $1.00 per share and has a dividend yield of 3.1%. Honda Motor pays out -142.9% of its earnings in the form of a dividend. As a group, “Automobiles” companies pay a dividend yield of 150.2% and pay out 7.2% of their earnings in the form of a dividend.

Profitability

This table compares Honda Motor and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Honda Motor	-0.73%	-1.30%	-0.49%
Honda Motor Competitors	-1,371.58%	-125.36%	-10.43%

Institutional & Insider Ownership

5.3% of Honda Motor shares are owned by institutional investors. Comparatively, 39.1% of shares of all “Automobiles” companies are owned by institutional investors. 0.0% of Honda Motor shares are owned by company insiders. Comparatively, 13.9% of shares of all “Automobiles” companies are owned by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Valuation & Earnings

This table compares Honda Motor and its competitors top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Honda Motor	$144.79 billion	-$2.80 billion	-45.47
Honda Motor Competitors	$57.04 billion	$1.13 billion	4.93

Honda Motor has higher revenue, but lower earnings than its competitors. Honda Motor is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Honda Motor competitors beat Honda Motor on 9 of the 15 factors compared.

About Honda Motor

Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, power, and other products in Japan, North America, Europe, Asia, and internationally. It operates through four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Power Product and Other Businesses. The Motorcycle Business segment produces motorcycles, including sports, business, and commuter models; and various off-road vehicles, such as all-terrain vehicles and side-by-sides. The Automobile Business segment offers passenger cars, light trucks, and mini vehicles. The Financial Services Business segment provides various financial services, including retail lending and leasing services to customers, as well as wholesale financing services to dealers. The Power Product and Other Businesses manufactures and sells power products, such as general purpose engines, lawn mowers, generators, water pumps, brush cutters, tillers, outboard marine engines, and snow throwers. This segment also offers HondaJet aircraft. The company also sells spare parts; and provides after-sale services through retail dealers directly, as well as through independent distributors and licensees. Honda Motor Co., Ltd. was founded in 1946 and is headquartered in Tokyo, Japan.