Comprehensive Stock Comparison
Compare Ford Motor Company (F) vs Honda Motor Co., Ltd. (HMC) 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 F's 1.2% |
| Value | HMC | Lower P/E (0.1x vs 9.2x) |
| Quality / Margins | F | 2.5% net margin vs HMC's 2.3% |
| Stability / Safety | HMC | Beta 0.83 vs F's 0.85, lower leverage |
| Dividends | F | 5.3% yield, vs HMC's 4.7% |
| Momentum (1Y) | F | +53.9% vs HMC's +13.1% |
| Efficiency (ROA) | F | 1.6% ROA vs HMC's 1.5%, ROIC -3.8% vs 5.9% |
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
Ford Motor Company is a global automotive manufacturer that designs, builds, and sells Ford trucks, SUVs, commercial vehicles, and Lincoln luxury cars. It generates revenue primarily through vehicle sales (~90% of revenue) and its Ford Credit financing arm (~10%), which provides loans and leases to customers and dealers. The company's competitive advantage lies in its iconic brand recognition—particularly in trucks and commercial vehicles—and its extensive global manufacturing and dealer network.
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.
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
F leads in 2 of 6 categories (Financial Metrics, Total Returns). HMC leads in 2 (Valuation Metrics, Profitability & Efficiency). 2 tied.
Financial Metrics (TTM)
HMC is the larger business by revenue, generating $21.34T annually — 112.5x F's $189.6B. Profitability is closely matched — net margins range from 2.5% (F) to 2.3% (HMC). On growth, F holds the edge at +9.4% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | FFord Motor Company | HMCHonda Motor Co., … |
|---|---|---|
| RevenueTrailing 12 months | $189.6B | $21.34T |
| EBITDAEarnings before interest/tax | $9.4B | $1.52T |
| Net IncomeAfter-tax profit | $4.7B | $496.0B |
| Free Cash FlowCash after capex | $11.9B | $11.8B |
| Gross MarginGross profit ÷ Revenue | +7.5% | +20.6% |
| Operating MarginEBIT ÷ Revenue | +1.9% | +3.1% |
| Net MarginNet income ÷ Revenue | +2.5% | +2.3% |
| FCF MarginFCF ÷ Revenue | +6.3% | +0.1% |
| Rev. Growth (YoY)Latest quarter vs prior year | +9.4% | -3.4% |
| EPS Growth (YoY)Latest quarter vs prior year | +172.7% | -40.0% |
Valuation Metrics
| Metric | FFord Motor Company | HMCHonda Motor Co., … |
|---|---|---|
| Market CapShares × price | $55.2B | $39.1B |
| Enterprise ValueMkt cap + debt − cash | $195.2B | $38.5B |
| Trailing P/EPrice ÷ TTM EPS | -6.84x | 8.77x |
| Forward P/EPrice ÷ next-FY EPS est. | 9.21x | 0.08x |
| PEG RatioP/E ÷ EPS growth rate | — | 0.56x |
| EV / EBITDAEnterprise value multiple | — | 3.07x |
| Price / SalesMarket cap ÷ Revenue | 0.29x | 0.28x |
| Price / BookPrice ÷ Book value/share | 1.56x | 0.58x |
| Price / FCFMarket cap ÷ FCF | 2.60x | — |
Profitability & Efficiency
F delivers a 9.9% return on equity — every $100 of shareholder capital generates $10 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 F's 4.54x. On the Piotroski fundamental quality scale (0–9), HMC scores 5/9 vs F's 3/9, reflecting solid financial health.
| Metric | FFord Motor Company | HMCHonda Motor Co., … |
|---|---|---|
| ROE (TTM)Return on equity | +9.9% | +3.9% |
| ROA (TTM)Return on assets | +1.6% | +1.5% |
| ROICReturn on invested capital | -3.8% | +5.9% |
| ROCEReturn on capital employed | -5.2% | +5.6% |
| Piotroski ScoreFundamental quality 0–9 | 3 | 5 |
| Debt / EquityFinancial leverage | 4.54x | 0.35x |
| Net DebtTotal debt minus cash | $140.0B | -$106.6B |
| Cash & Equiv.Liquid assets | $23.4B | $4.53T |
| Total DebtShort + long-term debt | $163.3B | $4.42T |
| Interest CoverageEBIT ÷ Interest expense | 5.36x | 13.59x |
Total Returns (with DRIP)
A $10,000 investment in F five years ago would be worth $14,712 today (with dividends reinvested), compared to $12,562 for HMC. Over the past 12 months, F leads with a +53.9% total return vs HMC's +13.1%. The 3-year compound annual growth rate (CAGR) favors F at 10.4% vs HMC's 9.2% — a key indicator of consistent wealth creation.
| Metric | FFord Motor Company | HMCHonda Motor Co., … |
|---|---|---|
| YTD ReturnYear-to-date | +6.8% | +0.7% |
| 1-Year ReturnPast 12 months | +53.9% | +13.1% |
| 3-Year ReturnCumulative with dividends | +34.4% | +30.4% |
| 5-Year ReturnCumulative with dividends | +47.1% | +25.6% |
| 10-Year ReturnCumulative with dividends | +61.5% | +56.6% |
| CAGR (3Y)Annualised 3-year return | +10.4% | +9.2% |
Risk & Volatility
HMC is the less volatile stock with a 0.83 beta — it tends to amplify market swings less than F's 0.85 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. F currently trades 95.3% from its 52-week high vs HMC's 86.4% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | FFord Motor Company | HMCHonda Motor Co., … |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.85x | 0.83x |
| 52-Week HighHighest price in past year | $14.79 | $34.89 |
| 52-Week LowLowest price in past year | $8.44 | $24.56 |
| % of 52W HighCurrent price vs 52-week peak | +95.3% | +86.4% |
| RSI (14)Momentum oscillator 0–100 | 61.1 | 44.6 |
| Avg Volume (50D)Average daily shares traded | 52.0M | 939K |
Analyst Outlook
Wall Street rates F as "Hold" and HMC as "Hold". Consensus price targets imply 4.5% upside for HMC (target: $32) vs -6.4% for F (target: $13). For income investors, F offers the higher dividend yield at 5.33% vs HMC's 4.74%.
| Metric | FFord Motor Company | HMCHonda Motor Co., … |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $13.19 | $31.51 |
| # AnalystsCovering analysts | 46 | 18 |
| Dividend YieldAnnual dividend ÷ price | +5.3% | +4.7% |
| Dividend StreakConsecutive years of raises | 0 | 4 |
| Dividend / ShareAnnual DPS | $0.75 | $223.36 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | 0.0% |
Historical Charts
Charts are rendered on first load. Hover for details.
Chart 1Total Return — 5 Years (Rebased to 100)
| Stock | Mar 20 | Feb 26 | Change |
|---|---|---|---|
| Ford Motor Company (F) | 100 | 191.81 | +91.8% |
| Honda Motor Co., Lt… (HMC) | 100 | 118.42 | +18.4% |
Ford Motor Company (F) returned +47% over 5 years vs Honda Motor Co., Lt… (HMC)'s +26%. A $10,000 investment in F 5 years ago would be worth $14,712 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Ford Motor Company (F) | $151.8B | $187.3B | +23.4% |
| Honda Motor Co., Lt… (HMC) | $14.6T | $21.7T | +48.5% |
Ford Motor Company's revenue grew from $151.8B (2016) to $187.3B (2025) — a 2.4% CAGR. Honda Motor Co., Ltd.'s revenue grew from $14.6T (2016) to $21.7T (2025) — a 4.5% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Ford Motor Company (F) | 3.0% | -4.4% | -244.5% |
| Honda Motor Co., Lt… (HMC) | 2.4% | 3.9% | +63.3% |
Ford Motor Company's net margin went from 3% (2016) to -4% (2025). Honda Motor Co., Ltd.'s net margin went from 2% (2016) to 4% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Ford Motor Company (F) | 6.6 | 6.8 | +3.0% |
| Honda Motor Co., Lt… (HMC) | 0.1 | 0.1 | +0.0% |
Ford Motor Company has traded in a 5x–11x P/E range over 5 years; current trailing P/E is ~-7x. Honda Motor Co., Ltd. has traded in a 0x–0x P/E range over 9 years; current trailing P/E is ~9x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Ford Motor Company (F) | 1.15 | -2.06 | -279.1% |
| Honda Motor Co., Lt… (HMC) | 191.16 | 536.79 | +180.8% |
Ford Motor Company's EPS grew from $1.15 (2016) to $-2.06 (2025) — a NaN% CAGR. Honda Motor Co., Ltd.'s EPS grew from $191.16 (2016) to $536.79 (2025) — a 12% CAGR.
Chart 6Free Cash Flow — 5 Years
Ford Motor Company generated $21B FCF in 2025 (+123% vs 2021). Honda Motor Co., Ltd. generated $-555B FCF in 2025 (-207% vs 2021).
F vs HMC: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is F or HMC 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 Ford Motor Company (F) a "Hold" — based on 46 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 — F or HMC?
On forward P/E, Honda Motor Co., Ltd. is actually cheaper at 0.1x.
03Which is the better long-term investment — F or HMC?
Over the past 5 years, Ford Motor Company (F) delivered a total return of +47.1%, compared to +25.6% for Honda Motor Co., Ltd. (HMC). A $10,000 investment in F five years ago would be worth approximately $15K today (assuming dividends reinvested). Over 10 years, the gap is even starker: F returned +61.5% 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 — F or HMC?
By beta (market sensitivity over 5 years), Honda Motor Co., Ltd. (HMC) is the lower-risk stock at 0.83β versus Ford Motor Company's 0.85β — meaning F is approximately 2% 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 5% for Ford Motor Company — giving it more financial flexibility in a downturn.
05Which has better profit margins — F or HMC?
Honda Motor Co., Ltd. (HMC) is the more profitable company, earning 3.9% net margin versus -4.4% for Ford Motor 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 -4.9% for F. 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 F or HMC more undervalued right now?
On forward earnings alone, Honda Motor Co., Ltd. (HMC) trades at 0.1x forward P/E versus 9.2x for Ford Motor Company — 9.1x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for HMC: 4.5% to $31.51.
07Which pays a better dividend — F or HMC?
All stocks in this comparison pay dividends. Ford Motor Company (F) offers the highest yield at 5.3%, versus 4.7% for Honda Motor Co., Ltd. (HMC).
08Is F or HMC 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). Both have compounded well over 10 years (HMC: +56.6%, F: +61.5%), 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 F and HMC?
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: F is a mid-cap income-oriented stock; HMC is a mid-cap deep-value 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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