Comprehensive Stock Comparison
Compare Honda Motor Co., Ltd. (HMC) vs Alibaba Group Holding Limited (BABA) 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 BABA's 5.9% |
| Value | HMC | Lower P/E (0.1x vs 3.4x) |
| Quality / Margins | BABA | 12.2% net margin vs HMC's 2.3% |
| Stability / Safety | HMC | Beta 0.83 vs BABA's 0.90 |
| Dividends | HMC | 4.7% yield, 4-year raise streak, vs BABA's 1.2% |
| Momentum (1Y) | HMC | +13.1% vs BABA's +10.2% |
| Efficiency (ROA) | BABA | 6.5% ROA vs HMC's 1.5%, ROIC 9.6% 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
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.
Alibaba is a Chinese e-commerce and technology conglomerate that operates digital marketplaces connecting buyers and sellers. It generates revenue primarily from its core commerce segments — China Commerce (~65%) and International Commerce (~10%) — along with cloud services (~10%) and logistics through Cainiao. Its key competitive advantage is its massive ecosystem network effect, where its platforms like Taobao and Tmall create a self-reinforcing cycle of merchants and consumers that's difficult for competitors to replicate.
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 3 of 6 categories (Valuation Metrics, Risk & Volatility). BABA leads in 2 (Financial Metrics, Profitability & Efficiency). 1 tied.
Financial Metrics (TTM)
HMC is the larger business by revenue, generating $21.34T annually — 21.1x BABA's $1.01T. BABA is the more profitable business, keeping 12.2% of every revenue dollar as net income compared to HMC's 2.3%. On growth, BABA holds the edge at +4.8% YoY revenue growth, suggesting stronger near-term business momentum.
| Metric | HMCHonda Motor Co., … | BABAAlibaba Group Hol… |
|---|---|---|
| RevenueTrailing 12 months | $21.34T | $1.01T |
| EBITDAEarnings before interest/tax | $1.52T | $114.6B |
| Net IncomeAfter-tax profit | $496.0B | $123.4B |
| Free Cash FlowCash after capex | $11.8B | $2.6B |
| Gross MarginGross profit ÷ Revenue | +20.6% | +41.2% |
| Operating MarginEBIT ÷ Revenue | +3.1% | +10.9% |
| Net MarginNet income ÷ Revenue | +2.3% | +12.2% |
| FCF MarginFCF ÷ Revenue | +0.1% | +0.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | -3.4% | +4.8% |
| EPS Growth (YoY)Latest quarter vs prior year | -40.0% | -52.0% |
Valuation Metrics
At 8.8x trailing earnings, HMC trades at a 52% valuation discount to BABA's 18.4x P/E. On an enterprise value basis, HMC's 3.1x EV/EBITDA is more attractive than BABA's 104.2x.
| Metric | HMCHonda Motor Co., … | BABAAlibaba Group Hol… |
|---|---|---|
| Market CapShares × price | $39.1B | $2.66T |
| Enterprise ValueMkt cap + debt − cash | $38.5B | $2.67T |
| Trailing P/EPrice ÷ TTM EPS | 8.77x | 18.44x |
| Forward P/EPrice ÷ next-FY EPS est. | 0.08x | 3.42x |
| PEG RatioP/E ÷ EPS growth rate | 0.56x | — |
| EV / EBITDAEnterprise value multiple | 3.07x | 104.23x |
| Price / SalesMarket cap ÷ Revenue | 0.28x | 18.33x |
| Price / BookPrice ÷ Book value/share | 0.58x | 2.19x |
| Price / FCFMarket cap ÷ FCF | — | 233.68x |
Profitability & Efficiency
BABA delivers a 11.1% return on equity — every $100 of shareholder capital generates $11 in annual profit, vs $4 for HMC. BABA carries lower financial leverage with a 0.23x debt-to-equity ratio, signaling a more conservative balance sheet compared to HMC's 0.35x. On the Piotroski fundamental quality scale (0–9), BABA scores 7/9 vs HMC's 5/9, reflecting strong financial health.
| Metric | HMCHonda Motor Co., … | BABAAlibaba Group Hol… |
|---|---|---|
| ROE (TTM)Return on equity | +3.9% | +11.1% |
| ROA (TTM)Return on assets | +1.5% | +6.5% |
| ROICReturn on invested capital | +5.9% | +9.6% |
| ROCEReturn on capital employed | +5.6% | +10.4% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 7 |
| Debt / EquityFinancial leverage | 0.35x | 0.23x |
| Net DebtTotal debt minus cash | -$106.6B | $66.8B |
| Cash & Equiv.Liquid assets | $4.53T | $181.7B |
| Total DebtShort + long-term debt | $4.42T | $248.5B |
| Interest CoverageEBIT ÷ Interest expense | 13.59x | 15.74x |
Total Returns (with DRIP)
A $10,000 investment in HMC five years ago would be worth $12,562 today (with dividends reinvested), compared to $6,154 for BABA. Over the past 12 months, HMC leads with a +13.1% total return vs BABA's +10.2%. The 3-year compound annual growth rate (CAGR) favors BABA at 19.2% vs HMC's 9.2% — a key indicator of consistent wealth creation.
| Metric | HMCHonda Motor Co., … | BABAAlibaba Group Hol… |
|---|---|---|
| YTD ReturnYear-to-date | +0.7% | -7.5% |
| 1-Year ReturnPast 12 months | +13.1% | +10.2% |
| 3-Year ReturnCumulative with dividends | +30.4% | +69.4% |
| 5-Year ReturnCumulative with dividends | +25.6% | -38.5% |
| 10-Year ReturnCumulative with dividends | +56.6% | +116.1% |
| CAGR (3Y)Annualised 3-year return | +9.2% | +19.2% |
Risk & Volatility
HMC is the less volatile stock with a 0.83 beta — it tends to amplify market swings less than BABA's 0.90 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. HMC currently trades 86.4% from its 52-week high vs BABA's 74.8% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | HMCHonda Motor Co., … | BABAAlibaba Group Hol… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.83x | 0.90x |
| 52-Week HighHighest price in past year | $34.89 | $192.67 |
| 52-Week LowLowest price in past year | $24.56 | $95.73 |
| % of 52W HighCurrent price vs 52-week peak | +86.4% | +74.8% |
| RSI (14)Momentum oscillator 0–100 | 44.6 | 33.4 |
| Avg Volume (50D)Average daily shares traded | 939K | 10.2M |
Analyst Outlook
Wall Street rates HMC as "Hold" and BABA as "Buy". Consensus price targets imply 30.9% upside for BABA (target: $189) vs 4.5% for HMC (target: $32). For income investors, HMC offers the higher dividend yield at 4.74% vs BABA's 1.23%.
| Metric | HMCHonda Motor Co., … | BABAAlibaba Group Hol… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Buy |
| Price TargetConsensus 12-month target | $31.51 | $188.62 |
| # AnalystsCovering analysts | 18 | 58 |
| Dividend YieldAnnual dividend ÷ price | +4.7% | +1.2% |
| Dividend StreakConsecutive years of raises | 4 | 2 |
| Dividend / ShareAnnual DPS | $223.36 | $12.14 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +0.5% |
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% |
| Alibaba Group Holdi… (BABA) | 100 | 79.81 | -20.2% |
Honda Motor Co., Lt… (HMC) returned +26% over 5 years vs Alibaba Group Holdi… (BABA)'s -38%. A $10,000 investment in HMC 5 years ago would be worth $12,562 today (including dividends reinvested).
Chart 2Revenue Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Honda Motor Co., Lt… (HMC) | $14.6T | $21.7T | +48.5% |
| Alibaba Group Holdi… (BABA) | $101.1B | $996.3B | +885.1% |
Honda Motor Co., Ltd.'s revenue grew from $14.6T (2016) to $21.7T (2025) — a 4.5% CAGR. Alibaba Group Holding Limited's revenue grew from $101.1B (2016) to $996.3B (2025) — a 28.9% CAGR.
Chart 3Net Margin Trend — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Honda Motor Co., Lt… (HMC) | 2.4% | 3.9% | +63.3% |
| Alibaba Group Holdi… (BABA) | 70.7% | 13.1% | -81.5% |
Honda Motor Co., Ltd.'s net margin went from 2% (2016) to 4% (2025). Alibaba Group Holding Limited's net margin went from 71% (2016) to 13% (2025).
Chart 4P/E Ratio History — 9 Years
| Stock | 2017 | 2025 | Change |
|---|---|---|---|
| Honda Motor Co., Lt… (HMC) | 0.1 | 0.1 | +0.0% |
| Alibaba Group Holdi… (BABA) | 8.8 | 2.7 | -69.3% |
Honda Motor Co., Ltd. has traded in a 0x–0x P/E range over 9 years; current trailing P/E is ~9x. Alibaba Group Holding Limited has traded in a 2x–9x P/E range over 9 years; current trailing P/E is ~18x.
Chart 5EPS Growth — 10 Years
| Stock | 2016 | 2025 | Change |
|---|---|---|---|
| Honda Motor Co., Lt… (HMC) | 191.16 | 536.79 | +180.8% |
| Alibaba Group Holdi… (BABA) | 34 | 53.6 | +57.6% |
Honda Motor Co., Ltd.'s EPS grew from $191.16 (2016) to $536.79 (2025) — a 12% CAGR. Alibaba Group Holding Limited's EPS grew from $34.00 (2016) to $53.60 (2025) — a 5% CAGR.
Chart 6Free Cash Flow — 5 Years
Honda Motor Co., Ltd. generated $-555B FCF in 2025 (-207% vs 2021). Alibaba Group Holding Limited generated $78B FCF in 2025 (-57% vs 2021).
HMC vs BABA: Frequently Asked Questions
9 questions · data-driven answers · updated daily
01Is HMC or BABA 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 Alibaba Group Holding Limited (BABA) a "Buy" — based on 58 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 BABA?
On trailing P/E, Honda Motor Co., Ltd. (HMC) is the cheapest at 8.8x versus Alibaba Group Holding Limited at 18.4x. On forward P/E, Honda Motor Co., Ltd. is actually cheaper at 0.1x.
03Which is the better long-term investment — HMC or BABA?
Over the past 5 years, Honda Motor Co., Ltd. (HMC) delivered a total return of +25.6%, compared to -38.5% for Alibaba Group Holding Limited (BABA). A $10,000 investment in HMC five years ago would be worth approximately $13K today (assuming dividends reinvested). Over 10 years, the gap is even starker: BABA returned +116.1% 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 BABA?
By beta (market sensitivity over 5 years), Honda Motor Co., Ltd. (HMC) is the lower-risk stock at 0.83β versus Alibaba Group Holding Limited's 0.90β — meaning BABA is approximately 9% more volatile than HMC relative to the S&P 500. On balance sheet safety, Alibaba Group Holding Limited (BABA) carries a lower debt/equity ratio of 23% versus 35% for Honda Motor Co., Ltd. — giving it more financial flexibility in a downturn.
05Which has better profit margins — HMC or BABA?
Alibaba Group Holding Limited (BABA) is the more profitable company, earning 13.1% net margin versus 3.9% for Honda Motor Co., Ltd. — meaning it keeps 13.1% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: BABA leads at 14.1% versus 5.6% for HMC. At the gross margin level — before operating expenses — BABA leads at 40.0%, 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 BABA more undervalued right now?
On forward earnings alone, Honda Motor Co., Ltd. (HMC) trades at 0.1x forward P/E versus 3.4x for Alibaba Group Holding Limited — 3.3x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for BABA: 30.9% to $188.62.
07Which pays a better dividend — HMC or BABA?
All stocks in this comparison pay dividends. Honda Motor Co., Ltd. (HMC) offers the highest yield at 4.7%, versus 1.2% for Alibaba Group Holding Limited (BABA).
08Is HMC or BABA 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%, BABA: +116.1%), 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 BABA?
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; BABA is a mega-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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