Head to Head Review: Bayerische Motoren Werke (OTCMKTS:BAMXF) vs. Honda Motor (NYSE:HMC)

Honda Motor (NYSE:HMC) and Bayerische Motoren Werke (OTCMKTS:BAMXF) are both large-cap auto/tires/trucks companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, profitability, analyst recommendations, institutional ownership, dividends, valuation and earnings.

Valuation & Earnings

This table compares Honda Motor and Bayerische Motoren Werke”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Honda Motor	$21,624.18 billion	0.00	$5.52 billion	$2.89	10.60
Bayerische Motoren Werke	$154.09 billion	0.35	$7.89 billion	$10.07	9.29

Bayerische Motoren Werke has lower revenue, but higher earnings than Honda Motor. Bayerische Motoren Werke is trading at a lower price-to-earnings ratio than Honda Motor, indicating that it is currently the more affordable of the two stocks.

Analyst Recommendations

This is a breakdown of recent recommendations for Honda Motor and Bayerische Motoren Werke, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Honda Motor	1	5	0	0	1.83
Bayerische Motoren Werke	0	3	0	1	2.50

Profitability

This table compares Honda Motor and Bayerische Motoren Werke’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Honda Motor	2.95%	5.03%	2.10%
Bayerische Motoren Werke	4.19%	6.07%	2.18%

Institutional & Insider Ownership

5.3% of Honda Motor shares are held by institutional investors. 0.0% of Honda Motor shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock is poised for long-term growth.

Risk and Volatility

Honda Motor has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500. Comparatively, Bayerische Motoren Werke has a beta of 0.83, indicating that its stock price is 17% less volatile than the S&P 500.

Summary

Bayerische Motoren Werke beats Honda Motor on 9 of the 13 factors compared between the two stocks.

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.

About Bayerische Motoren Werke

Bayerische Motoren Werke Aktiengesellschaft engages in the development, manufacture, and sale of automobiles and motorcycles, and spare parts and accessories worldwide. It operates through Automotive, Motorcycles, and Financial Services segments. The Automotive segment engages in the development, manufacture, assembling, and sale of automobiles, spare parts, accessories, and mobility services under the BMW, MINI, and Rolls-Royce brands. The Motorcycles segment develops, manufactures, assembles, and sells motorcycles and scooters under the BMW Motorrad brand, as well as spare parts and accessories. The Financial Services segment is involved in the automobile and motorcycle leasing, credit financing, retail and dealership financing, multi-brand fleet, customer deposit, and insurance activities; and the provision of fleet management services under the Alphabet brand. The company sells its products through independent dealerships. Bayerische Motoren Werke Aktiengesellschaft was founded in 1916 and is headquartered in Munich, Germany.