Comprehensive Stock Comparison
Compare Honda Motor Co., Ltd. (HMC) vs Tesla, Inc. (TSLA) vs Toyota Motor Corporation (TM) 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 | TM | 6.5% revenue growth vs TSLA's -2.9% |
| Value | HMC | Lower P/E (0.1x vs 202.8x), PEG 0.01 vs 5.23 |
| Quality / Margins | TM | 9.4% net margin vs HMC's 2.3% |
| Stability / Safety | HMC | Beta 0.83 vs TSLA's 2.16 |
| Dividends | HMC | 4.7% yield, 4-year raise streak, vs TM's 2.3% |
| Momentum (1Y) | TSLA | +37.4% vs HMC's +13.1% |
| Efficiency (ROA) | TM | 4.7% ROA vs HMC's 1.5%, ROIC 5.6% vs 5.9% |
Who Each Stock Is For
Income & stability
Growth exposure
Long-term compounding (10Y)
Sleep-well-at-night portfolio
Valuation efficiency (growth/$)
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.
Tesla is an electric vehicle and clean energy company that designs, manufactures, and sells battery-electric vehicles, solar energy systems, and energy storage solutions. It generates most of its revenue from automotive sales—roughly 85%—with the remainder coming from energy generation/storage products and regulatory credit sales. Tesla's key competitive advantage lies in its vertically integrated manufacturing, proprietary battery technology, and industry-leading Supercharger network that creates a comprehensive ecosystem.
Toyota is one of the world's largest automakers, manufacturing and selling vehicles across nearly every segment — from compact cars to luxury sedans and trucks. It generates most of its revenue from automotive sales (around 90%), supplemented by financial services (about 8%) that provide financing and leasing to customers. The company's key advantage is its legendary manufacturing efficiency — particularly the Toyota Production System — which delivers industry-leading quality and cost control while pioneering hybrid technology with its Prius platform.
Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
Financial Metrics Comparison
Side-by-side fundamentals across 3 stocks. BestLagging
Financial Scorecard
TM leads in 2 of 6 categories (Financial Metrics, Profitability & Efficiency). HMC leads in 2 (Valuation Metrics, Analyst Outlook). 1 tied.
Financial Metrics (TTM)
TM is the larger business by revenue, generating $49.39T annually — 520.8x TSLA's $94.8B. TM is the more profitable business, keeping 9.4% of every revenue dollar as net income compared to HMC's 2.3%. On growth, TM holds the edge at +8.2% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | HMCHonda Motor Co., … | TSLATesla, Inc. | TMToyota Motor Corp… |
|---|---|---|---|
| RevenueTrailing 12 months | $21.34T | $94.8B | $49.39T |
| EBITDAEarnings before interest/tax | $1.52T | $10.5B | $6.59T |
| Net IncomeAfter-tax profit | $496.0B | $3.8B | $4.63T |
| Free Cash FlowCash after capex | $11.8B | $6.2B | $147.8B |
| Gross MarginGross profit ÷ Revenue | +20.6% | +18.0% | +18.0% |
| Operating MarginEBIT ÷ Revenue | +3.1% | +4.6% | +8.8% |
| Net MarginNet income ÷ Revenue | +2.3% | +4.0% | +9.4% |
| FCF MarginFCF ÷ Revenue | +0.1% | +6.6% | +0.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | -3.4% | -3.1% | +8.2% |
| EPS Growth (YoY)Latest quarter vs prior year | -40.0% | -63.5% | +65.7% |
Valuation Metrics
At 8.8x trailing earnings, HMC trades at a 98% valuation discount to TSLA's 372.7x P/E. Adjusting for growth (PEG ratio), TM offers better value at 0.52x vs TSLA's 9.62x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | HMCHonda Motor Co., … | TSLATesla, Inc. | TMToyota Motor Corp… |
|---|---|---|---|
| Market CapShares × price | $39.1B | $1.51T | $315.9B |
| Enterprise ValueMkt cap + debt − cash | $38.5B | $1.50T | $506.8B |
| Trailing P/EPrice ÷ TTM EPS | 8.77x | 372.69x | 10.53x |
| Forward P/EPrice ÷ next-FY EPS est. | 0.08x | 202.78x | 0.08x |
| PEG RatioP/E ÷ EPS growth rate | 0.56x | 9.62x | 0.52x |
| EV / EBITDAEnterprise value multiple | 3.07x | 142.98x | 11.23x |
| Price / SalesMarket cap ÷ Revenue | 0.28x | 15.92x | 1.03x |
| Price / BookPrice ÷ Book value/share | 0.58x | 17.19x | 1.35x |
| Price / FCFMarket cap ÷ FCF | — | 242.74x | — |
Profitability & Efficiency
TM delivers a 12.0% return on equity — every $100 of shareholder capital generates $12 in annual profit, vs $4 for HMC. TSLA carries lower financial leverage with a 0.10x debt-to-equity ratio, signaling a more conservative balance sheet compared to TM's 1.05x. On the Piotroski fundamental quality scale (0–9), TSLA scores 6/9 vs TM's 5/9, reflecting solid financial health.
| Metric | HMCHonda Motor Co., … | TSLATesla, Inc. | TMToyota Motor Corp… |
|---|---|---|---|
| ROE (TTM)Return on equity | +3.9% | +4.6% | +12.0% |
| ROA (TTM)Return on assets | +1.5% | +2.8% | +4.7% |
| ROICReturn on invested capital | +5.9% | +4.5% | +5.6% |
| ROCEReturn on capital employed | +5.6% | +4.4% | +7.7% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 6 | 5 |
| Debt / EquityFinancial leverage | 0.35x | 0.10x | 1.05x |
| Net DebtTotal debt minus cash | -$106.6B | -$8.1B | $29.81T |
| Cash & Equiv.Liquid assets | $4.53T | $16.5B | $8.98T |
| Total DebtShort + long-term debt | $4.42T | $8.4B | $38.79T |
| Interest CoverageEBIT ÷ Interest expense | 13.59x | 16.62x | 38.49x |
Total Returns (with DRIP)
A $10,000 investment in TM five years ago would be worth $17,804 today (with dividends reinvested), compared to $12,562 for HMC. Over the past 12 months, TSLA leads with a +37.4% total return vs HMC's +13.1%. The 3-year compound annual growth rate (CAGR) favors TSLA at 25.1% vs HMC's 9.2% — a key indicator of consistent wealth creation.
| Metric | HMCHonda Motor Co., … | TSLATesla, Inc. | TMToyota Motor Corp… |
|---|---|---|---|
| YTD ReturnYear-to-date | +0.7% | -8.1% | +11.2% |
| 1-Year ReturnPast 12 months | +13.1% | +37.4% | +36.7% |
| 3-Year ReturnCumulative with dividends | +30.4% | +95.7% | +89.4% |
| 5-Year ReturnCumulative with dividends | +25.6% | +68.1% | +78.0% |
| 10-Year ReturnCumulative with dividends | +56.6% | +3044.6% | +174.4% |
| CAGR (3Y)Annualised 3-year return | +9.2% | +25.1% | +23.7% |
Risk & Volatility
HMC is the less volatile stock with a 0.83 beta — it tends to amplify market swings less than TSLA's 2.16 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. TM currently trades 97.4% from its 52-week high vs TSLA's 80.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | HMCHonda Motor Co., … | TSLATesla, Inc. | TMToyota Motor Corp… |
|---|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.83x | 2.16x | 0.93x |
| 52-Week HighHighest price in past year | $34.89 | $498.83 | $248.90 |
| 52-Week LowLowest price in past year | $24.56 | $214.25 | $155.00 |
| % of 52W HighCurrent price vs 52-week peak | +86.4% | +80.7% | +97.4% |
| RSI (14)Momentum oscillator 0–100 | 44.6 | 44.1 | 59.2 |
| Avg Volume (50D)Average daily shares traded | 939K | 52.3M | 254K |
Analyst Outlook
Analyst consensus: HMC as "Hold", TSLA as "Hold", TM as "Hold". Consensus price targets imply 14.0% upside for TSLA (target: $459) vs -26.0% for TM (target: $179). For income investors, HMC offers the higher dividend yield at 4.74% vs TM's 2.28%.
| Metric | HMCHonda Motor Co., … | TSLATesla, Inc. | TMToyota Motor Corp… |
|---|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold | Hold |
| Price TargetConsensus 12-month target | $31.51 | $458.67 | $179.41 |
| # AnalystsCovering analysts | 18 | 80 | 15 |
| Dividend YieldAnnual dividend ÷ price | +4.7% | — | +2.3% |
| Dividend StreakConsecutive years of raises | 4 | — | 4 |
| Dividend / ShareAnnual DPS | $223.36 | — | $863.50 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% | +2.4% |
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% |
| Tesla, Inc. (TSLA) | 100 | 850.94 | +750.9% |
| Toyota Motor Corpor… (TM) | 100 | 174.5 | +74.5% |
Toyota Motor Corpor… (TM) returned +78% over 5 years vs Honda Motor Co., Lt… (HMC)'s +26%. A $10,000 investment in TM 5 years ago would be worth $17,804 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Honda Motor Co., Lt… (HMC) | $14.6T | $21.7T | +48.5% |
| Tesla, Inc. (TSLA) | $7.0B | $94.8B | +1254.6% |
| Toyota Motor Corpor… (TM) | $28.4T | $48.0T | +69.1% |
Honda Motor Co., Ltd.'s revenue grew from $14.6T (2016) to $21.7T (2025) — a 4.5% CAGR. Tesla, Inc.'s revenue grew from $7.0B (2016) to $94.8B (2025) — a 33.6% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Honda Motor Co., Lt… (HMC) | 2.4% | 3.9% | +63.3% |
| Tesla, Inc. (TSLA) | -9.6% | 4.0% | +141.5% |
| Toyota Motor Corpor… (TM) | 8.1% | 9.9% | +21.8% |
Honda Motor Co., Ltd.'s net margin went from 2% (2016) to 4% (2025). Tesla, Inc.'s net margin went from -10% (2016) to 4% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Honda Motor Co., Lt… (HMC) | 0.1 | 0.1 | +0.0% |
| Tesla, Inc. (TSLA) | 216.1 | 416.4 | +92.7% |
| Toyota Motor Corpor… (TM) | 0.1 | 0.1 | +0.0% |
Honda Motor Co., Ltd. has traded in a 0x–0x P/E range over 9 years; current trailing P/E is ~9x. Tesla, Inc. has traded in a 34x–416x P/E range over 5 years; current trailing P/E is ~373x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Honda Motor Co., Lt… (HMC) | 191.16 | 536.79 | +180.8% |
| Tesla, Inc. (TSLA) | -0.31 | 1.08 | +448.4% |
| Toyota Motor Corpor… (TM) | 1,470.7 | 3,595.6 | +144.5% |
Honda Motor Co., Ltd.'s EPS grew from $191.16 (2016) to $536.79 (2025) — a 12% CAGR. Tesla, Inc.'s EPS grew from $-0.31 (2016) to $1.08 (2025).
Chart 6Free Cash Flow — 5 Years
Honda Motor Co., Ltd. generated $-555B FCF in 2025 (-207% vs 2021). Tesla, Inc. generated $6B FCF in 2025 (+79% vs 2021).
HMC vs TSLA vs TM: Key Questions Answered
9 questions · data-driven answers · updated daily
01Is HMC or TSLA or TM 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 Honda Motor Co., Ltd. (HMC) a "Hold" — based on 18 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 TSLA or TM?
On trailing P/E, Honda Motor Co., Ltd. (HMC) is the cheapest at 8.8x versus Tesla, Inc. at 372.7x. On forward P/E, Honda Motor Co., Ltd. is actually cheaper at 0.1x. The PEG ratio (P/E divided by earnings growth rate) is the most growth-adjusted single valuation metric: Toyota Motor Corporation wins at 0.00x versus Tesla, Inc.'s 5.23x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.
03Which is the better long-term investment — HMC or TSLA or TM?
Over the past 5 years, Toyota Motor Corporation (TM) delivered a total return of +78.0%, compared to +25.6% for Honda Motor Co., Ltd. (HMC). A $10,000 investment in TM five years ago would be worth approximately $18K today (assuming dividends reinvested). Over 10 years, the gap is even starker: TSLA returned +30.4% 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 TSLA or TM?
By beta (market sensitivity over 5 years), Honda Motor Co., Ltd. (HMC) is the lower-risk stock at 0.83β versus Tesla, Inc.'s 2.16β — meaning TSLA is approximately 161% more volatile than HMC relative to the S&P 500. On balance sheet safety, Tesla, Inc. (TSLA) carries a lower debt/equity ratio of 10% versus 105% for Toyota Motor Corporation — giving it more financial flexibility in a downturn.
05Which has better profit margins — HMC or TSLA or TM?
Toyota Motor Corporation (TM) is the more profitable company, earning 9.9% net margin versus 3.9% for Honda Motor Co., Ltd. — meaning it keeps 9.9% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: TM leads at 10.0% versus 4.6% for TSLA. 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 TSLA or TM more undervalued right now?
The PEG ratio (forward P/E divided by expected earnings growth rate) is the most precise measure of undervaluation relative to growth potential. By this metric, Toyota Motor Corporation (TM) is the more undervalued stock at a PEG of 0.00x versus Tesla, Inc.'s 5.23x. A PEG below 1.0 is traditionally considered the threshold for growth-adjusted undervaluation. On forward earnings alone, Honda Motor Co., Ltd. (HMC) trades at 0.1x forward P/E versus 202.8x for Tesla, Inc. — 202.7x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for TSLA: 14.0% to $458.67.
07Which pays a better dividend — HMC or TSLA or TM?
In this comparison, HMC (4.7% yield), TM (2.3% yield) pay a dividend. TSLA does not pay a meaningful dividend and should not be held primarily for income.
08Is HMC or TSLA or TM better for a retirement portfolio?
For long-horizon retirement investors, Honda Motor Co., Ltd. (HMC) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 0.83), 4.7% yield). Tesla, Inc. (TSLA) carries a higher beta of 2.16 — meaning larger drawdowns in market downturns, which matters significantly when you cannot wait years for a recovery. Both have compounded well over 10 years (HMC: +56.6%, TSLA: +30.4%), 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 TSLA and TM?
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; TSLA is a mega-cap quality compounder stock; TM is a large-cap deep-value stock. HMC, TM pay a dividend while TSLA does not, making them suitable for different income and tax situations. 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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