Comprehensive Stock Comparison
Compare Honda Motor Co., Ltd. (HMC) vs General Motors Company (GM) Stock
Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.
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Quick Verdict
| Category | Winner | Why |
|---|---|---|
| Growth | HMC | 6.2% revenue growth vs GM's -1.3% |
| Value | HMC | Lower P/E (0.1x vs 6.4x) |
| Quality / Margins | HMC | 2.3% net margin vs GM's 1.8% |
| Stability / Safety | HMC | Beta 0.83 vs GM's 0.89, lower leverage |
| Dividends | HMC | 4.7% yield, 4-year raise streak, vs GM's 0.9% |
| Momentum (1Y) | GM | +61.4% vs HMC's +13.1% |
| Efficiency (ROA) | HMC | 1.5% ROA vs GM's 1.2%, ROIC 5.9% vs 1.3% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Defensive / Recession hedge
Business Model
What each company does and how it makes money
Honda is a global automotive and mobility company that manufactures and sells motorcycles, automobiles, and power products worldwide. It generates revenue primarily from vehicle sales—with automobiles contributing roughly 75% of revenue and motorcycles around 15%—supplemented by financial services and power equipment. Honda's competitive advantage lies in its engineering excellence and brand reputation for reliability, particularly in fuel-efficient engines and motorcycle technology.
General Motors is a global automotive manufacturer that designs, builds, and sells vehicles under brands like Chevrolet, Cadillac, Buick, and GMC. It generates revenue primarily from vehicle sales — with North America contributing about 80% of automotive revenue — supplemented by financing operations through GM Financial and connected services. The company's competitive advantage lies in its massive scale and manufacturing efficiency, established dealer network, and growing investments in electric vehicles and autonomous driving technology through its Cruise subsidiary.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 2 stocks. BestLagging
Financial Scorecard
HMC leads in 4 of 6 categories (Financial Metrics, Valuation Metrics). GM leads in 1 (Total Returns). 1 tied.
Financial Metrics (TTM)
HMC is the larger business by revenue, generating $21.34T annually — 115.3x GM's $185.0B. Profitability is closely matched — net margins range from 2.3% (HMC) to 1.8% (GM).
| Metric | HMCHonda Motor Co., … | GMGeneral Motors Co… |
|---|---|---|
| RevenueTrailing 12 months | $21.34T | $185.0B |
| EBITDAEarnings before interest/tax | $1.52T | $17.5B |
| Net IncomeAfter-tax profit | $496.0B | $3.3B |
| Free Cash FlowCash after capex | $11.8B | $11.1B |
| Gross MarginGross profit ÷ Revenue | +20.6% | +6.3% |
| Operating MarginEBIT ÷ Revenue | +3.1% | +1.6% |
| Net MarginNet income ÷ Revenue | +2.3% | +1.8% |
| FCF MarginFCF ÷ Revenue | +0.1% | +6.0% |
| Rev. Growth (YoY)Latest quarter vs prior year | -3.4% | -5.1% |
| EPS Growth (YoY)Latest quarter vs prior year | -40.0% | -135.3% |
Valuation Metrics
At 8.8x trailing earnings, HMC trades at a 64% valuation discount to GM's 24.1x P/E. On an enterprise value basis, HMC's 3.1x EV/EBITDA is more attractive than GM's 12.1x.
| Metric | HMCHonda Motor Co., … | GMGeneral Motors Co… |
|---|---|---|
| Market CapShares × price | $39.1B | $71.2B |
| Enterprise ValueMkt cap + debt − cash | $38.5B | $180.5B |
| Trailing P/EPrice ÷ TTM EPS | 8.77x | 24.07x |
| Forward P/EPrice ÷ next-FY EPS est. | 0.08x | 6.40x |
| PEG RatioP/E ÷ EPS growth rate | 0.56x | — |
| EV / EBITDAEnterprise value multiple | 3.07x | 12.12x |
| Price / SalesMarket cap ÷ Revenue | 0.28x | 0.38x |
| Price / BookPrice ÷ Book value/share | 0.58x | 1.21x |
| Price / FCFMarket cap ÷ FCF | — | 6.43x |
Profitability & Efficiency
GM delivers a 5.2% return on equity — every $100 of shareholder capital generates $5 in annual profit, vs $4 for HMC. HMC carries lower financial leverage with a 0.35x debt-to-equity ratio, signaling a more conservative balance sheet compared to GM's 2.06x. On the Piotroski fundamental quality scale (0–9), GM scores 6/9 vs HMC's 5/9, reflecting solid financial health.
| Metric | HMCHonda Motor Co., … | GMGeneral Motors Co… |
|---|---|---|
| ROE (TTM)Return on equity | +3.9% | +5.2% |
| ROA (TTM)Return on assets | +1.5% | +1.2% |
| ROICReturn on invested capital | +5.9% | +1.3% |
| ROCEReturn on capital employed | +5.6% | +1.6% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 6 |
| Debt / EquityFinancial leverage | 0.35x | 2.06x |
| Net DebtTotal debt minus cash | -$106.6B | $109.3B |
| Cash & Equiv.Liquid assets | $4.53T | $20.9B |
| Total DebtShort + long-term debt | $4.42T | $130.3B |
| Interest CoverageEBIT ÷ Interest expense | 13.59x | 3.79x |
Total Returns (with DRIP)
A $10,000 investment in GM five years ago would be worth $15,284 today (with dividends reinvested), compared to $12,562 for HMC. Over the past 12 months, GM leads with a +61.4% total return vs HMC's +13.1%. The 3-year compound annual growth rate (CAGR) favors GM at 27.4% vs HMC's 9.2% — a key indicator of consistent wealth creation.
| Metric | HMCHonda Motor Co., … | GMGeneral Motors Co… |
|---|---|---|
| YTD ReturnYear-to-date | +0.7% | -2.8% |
| 1-Year ReturnPast 12 months | +13.1% | +61.4% |
| 3-Year ReturnCumulative with dividends | +30.4% | +106.8% |
| 5-Year ReturnCumulative with dividends | +25.6% | +52.8% |
| 10-Year ReturnCumulative with dividends | +56.6% | +194.7% |
| CAGR (3Y)Annualised 3-year return | +9.2% | +27.4% |
Risk & Volatility
HMC is the less volatile stock with a 0.83 beta — it tends to amplify market swings less than GM's 0.89 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. GM currently trades 89.8% from its 52-week high vs HMC's 86.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | HMCHonda Motor Co., … | GMGeneral Motors Co… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.83x | 0.89x |
| 52-Week HighHighest price in past year | $34.89 | $87.62 |
| 52-Week LowLowest price in past year | $24.56 | $41.60 |
| % of 52W HighCurrent price vs 52-week peak | +86.4% | +89.8% |
| RSI (14)Momentum oscillator 0–100 | 44.6 | 47.7 |
| Avg Volume (50D)Average daily shares traded | 939K | 6.8M |
Analyst Outlook
Wall Street rates HMC as "Hold" and GM as "Buy". Consensus price targets imply 14.3% upside for GM (target: $90) vs 4.5% for HMC (target: $32). For income investors, HMC offers the higher dividend yield at 4.74% vs GM's 0.86%.
| Metric | HMCHonda Motor Co., … | GMGeneral Motors Co… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $31.51 | $89.93 |
| # AnalystsCovering analysts | 18 | 51 |
| Dividend YieldAnnual dividend ÷ price | +4.7% | +0.9% |
| Dividend StreakConsecutive years of raises | 4 | 4 |
| Dividend / ShareAnnual DPS | $223.36 | $0.68 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +8.5% |
Historical Charts
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Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Honda Motor Co., Lt… (HMC) | 100 | 118.42 | +18.4% |
| General Motors Comp… (GM) | 100 | 268.2 | +168.2% |
General Motors Comp… (GM) returned +53% over 5 years vs Honda Motor Co., Lt… (HMC)'s +26%. A $10,000 investment in GM 5 years ago would be worth $15,284 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Honda Motor Co., Lt… (HMC) | $14.6T | $21.7T | +48.5% |
| General Motors Comp… (GM) | $166.4B | $185.0B | +11.2% |
Honda Motor Co., Ltd.'s revenue grew from $14.6T (2016) to $21.7T (2025) — a 4.5% CAGR. General Motors Company's revenue grew from $166.4B (2016) to $185.0B (2025) — a 1.2% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Honda Motor Co., Lt… (HMC) | 2.4% | 3.9% | +63.3% |
| General Motors Comp… (GM) | 5.7% | 1.5% | -74.3% |
Honda Motor Co., Ltd.'s net margin went from 2% (2016) to 4% (2025). General Motors Company's net margin went from 6% (2016) to 1% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Honda Motor Co., Lt… (HMC) | 0.1 | 0.1 | +0.0% |
| General Motors Comp… (GM) | 6 | 24.9 | +315.0% |
Honda Motor Co., Ltd. has traded in a 0x–0x P/E range over 9 years; current trailing P/E is ~9x. General Motors Company has traded in a 5x–25x P/E range over 8 years; current trailing P/E is ~24x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Honda Motor Co., Lt… (HMC) | 191.16 | 536.79 | +180.8% |
| General Motors Comp… (GM) | 6 | 3.27 | -45.5% |
Honda Motor Co., Ltd.'s EPS grew from $191.16 (2016) to $536.79 (2025) — a 12% CAGR. General Motors Company's EPS grew from $6.00 (2016) to $3.27 (2025) — a -7% CAGR.
Chart 6Free Cash Flow — 5 Years
Honda Motor Co., Ltd. generated $-555B FCF in 2025 (-207% vs 2021). General Motors Company generated $11B FCF in 2025 (+260% vs 2021).
HMC vs GM: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is HMC or GM a better buy right now?
Honda Motor Co., Ltd. (HMC) offers the better valuation at 8.8x trailing P/E (0.1x forward), making it the more compelling value choice. Analysts rate General Motors Company (GM) a "Buy" — based on 51 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.
02Which has the better valuation — HMC or GM?
On trailing P/E, Honda Motor Co., Ltd. (HMC) is the cheapest at 8.8x versus General Motors Company at 24.1x. On forward P/E, Honda Motor Co., Ltd. is actually cheaper at 0.1x.
03Which is the better long-term investment — HMC or GM?
Over the past 5 years, General Motors Company (GM) delivered a total return of +52.8%, compared to +25.6% for Honda Motor Co., Ltd. (HMC). A $10,000 investment in GM five years ago would be worth approximately $15K today (assuming dividends reinvested). Over 10 years, the gap is even starker: GM returned +194.7% versus HMC's +56.6%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.
04Which is safer — HMC or GM?
By beta (market sensitivity over 5 years), Honda Motor Co., Ltd. (HMC) is the lower-risk stock at 0.83β versus General Motors Company's 0.89β — meaning GM is approximately 7% more volatile than HMC relative to the S&P 500. On balance sheet safety, Honda Motor Co., Ltd. (HMC) carries a lower debt/equity ratio of 35% versus 2% for General Motors Company — giving it more financial flexibility in a downturn.
05Which has better profit margins — HMC or GM?
Honda Motor Co., Ltd. (HMC) is the more profitable company, earning 3.9% net margin versus 1.5% for General Motors Company — meaning it keeps 3.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HMC leads at 5.6% versus 1.6% for GM. At the gross margin level — before operating expenses — HMC leads at 21.5%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.
06Is HMC or GM more undervalued right now?
On forward earnings alone, Honda Motor Co., Ltd. (HMC) trades at 0.1x forward P/E versus 6.4x for General Motors Company — 6.3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GM: 14.3% to $89.93.
07Which pays a better dividend — HMC or GM?
All stocks in this comparison pay dividends. Honda Motor Co., Ltd. (HMC) offers the highest yield at 4.7%, versus 0.9% for General Motors Company (GM).
08Is HMC or GM better for a retirement portfolio?
For long-horizon retirement investors, General Motors Company (GM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.89), 0.9% yield, +194.7% 10Y return). Both have compounded well over 10 years (GM: +194.7%, HMC: +56.6%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.
09What are the main differences between HMC and GM?
Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both. In terms of investment character: HMC is a mid-cap deep-value stock; GM is a mid-cap quality compounder stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.
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