Honda Motor (NYSE:HMC – Get Free Report) and Workhorse Group (NASDAQ:WKHS – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two companies based on the strength of their institutional ownership, risk, dividends, profitability, analyst recommendations, earnings and valuation.
Institutional & Insider Ownership
5.3% of Honda Motor shares are owned by institutional investors. Comparatively, 16.0% of Workhorse Group shares are owned by institutional investors. 0.0% of Honda Motor shares are owned by company insiders. Comparatively, 0.0% of Workhorse Group shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Profitability
This table compares Honda Motor and Workhorse Group’s 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% |
| Workhorse Group | -357.61% | -311.04% | -75.40% |
Valuation & Earnings
This table compares Honda Motor and Workhorse Group”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 | $144.79 billion | 0.38 | -$2.80 billion | ($0.70) | -50.56 |
| Workhorse Group | $21.21 million | 1.69 | -$64.09 million | ($12.31) | -0.27 |
Workhorse Group has lower revenue, but higher earnings than Honda Motor. Honda Motor is trading at a lower price-to-earnings ratio than Workhorse Group, indicating that it is currently the more affordable of the two stocks.
Volatility & Risk
Honda Motor has a beta of 0.49, indicating that its stock price is 51% less volatile than the S&P 500. Comparatively, Workhorse Group has a beta of 2.69, indicating that its stock price is 169% more volatile than the S&P 500.
Analyst Ratings
This is a breakdown of current recommendations and price targets for Honda Motor and Workhorse Group, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Honda Motor | 1 | 2 | 0 | 2 | 2.60 |
| Workhorse Group | 1 | 0 | 0 | 0 | 1.00 |
Honda Motor presently has a consensus target price of $34.00, indicating a potential downside of 3.94%. Given Honda Motor’s stronger consensus rating and higher probable upside, equities research analysts clearly believe Honda Motor is more favorable than Workhorse Group.
Summary
Honda Motor beats Workhorse Group on 8 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 Workhorse Group
Workhorse Group Inc., a technology company, engages in design, manufacture, and sale of zero-emission commercial vehicles in the United States. The company offers commercial vehicles under the Workhorse brand. The company was formerly known as AMP Holding Inc. and changed its name to Workhorse Group Inc. in April 2015. Workhorse Group Inc. was founded in 2007 and is headquartered in Sharonville, Ohio.
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