Honda Motor (HMC) and Its Peers Head to Head Analysis

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

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 149.3% and pay out 7.2% of their earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Honda Motor and its rivals, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Honda Motor	2	1	0	2	2.40
Honda Motor Competitors	2049	5046	6310	188	2.34

Honda Motor currently has a consensus target price of $25.00, suggesting a potential downside of 21.41%. As a group, “Automobiles” companies have a potential upside of 74.80%. Given Honda Motor’s rivals higher possible upside, analysts clearly believe Honda Motor has less favorable growth aspects than its rivals.

Valuation and Earnings

This table compares Honda Motor and its rivals gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Honda Motor	$144.79 billion	-$2.80 billion	-45.44
Honda Motor Competitors	$812.80 billion	$1.13 billion	6.80

Honda Motor’s rivals have higher revenue and earnings than Honda Motor. Honda Motor is trading at a lower price-to-earnings ratio than its rivals, indicating that it is currently more affordable than other companies in its industry.

Institutional and Insider Ownership

5.3% of Honda Motor shares are held by institutional investors. Comparatively, 39.1% of shares of all “Automobiles” companies are held by institutional investors. 0.0% of Honda Motor shares are held by company insiders. Comparatively, 13.9% of shares of all “Automobiles” companies are held by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company is poised for long-term growth.

Risk & Volatility

Honda Motor has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, Honda Motor’s rivals have a beta of 0.95, indicating that their average share price is 5% less volatile than the S&P 500.

Profitability

This table compares Honda Motor and its rivals’ 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	-1,522.54%	-126.86%	-11.73%

Summary

Honda Motor rivals 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.