HMC
Honda Motor Co., Ltd.
Auto - Manufacturers
Market Cap$31.22B
5Y Perf.-7.6%
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Stock Comparison
HMC vs TM
Revenue, margins, valuation, and 5-year total return — side by side.
TM
Toyota Motor Corporation
Auto - Manufacturers
Market Cap$246.55B
5Y Perf.+50.1%
HMC vs TM — Key Financials
Market cap, revenue, margins, and valuation side-by-side.
| Company Snapshot | HMC | TM |
|---|---|---|
| Industry | Auto - Manufacturers | Auto - Manufacturers |
| Market Cap | $31.22B | $246.55B |
| Revenue (TTM) | $21.34T | $49.39T |
| Net Income (TTM) | $496.01B | $4.63T |
| Gross Margin | 20.6% | 18.0% |
| Operating Margin | 3.1% | 8.8% |
| Forward P/E | 7.0x | 0.1x |
| Total Debt | $4.42T | $38.79T |
| Cash & Equiv. | $4.53T | $8.98T |
HMC vs TM — Long-Term Stock Performance
Price return indexed to 100 at period start. Dividends excluded.
HMC
TM
| Stock | May 20 | May 26 | Return |
|---|---|---|---|
| Honda Motor Co., Lt… (HMC) | 100 | 92.4 | -7.6% |
| Toyota Motor Corpor… (TM) | 100 | 150.1 | +50.1% |
Price return only. Dividends and distributions are not included.
Quick Verdict: HMC vs TM
Each card shows where this stock fits in a portfolio — not just who wins on paper.
Bottom line: TM leads in 5 of 7 categories, making it the strongest pick for growth and revenue expansion and valuation and capital efficiency. Honda Motor Co., Ltd. is the stronger pick specifically for capital preservation and lower volatility and dividend income and shareholder returns. As sector peers, any of these can serve as alternatives in the same allocation.
HMC
Honda Motor Co., Ltd.
The Income Pick
HMC is the clearest fit if your priority is income & stability and sleep-well-at-night.
- Dividend streak 4 yrs, beta 0.96, yield 5.9%
- Lower volatility, beta 0.96, Low D/E 35.0%, current ratio 1.36x
- Beta 0.96, yield 5.9%, current ratio 1.36x
Best for: income & stability and sleep-well-at-night
TM
Toyota Motor Corporation
The Growth Play
TM carries the broadest edge in this set and is the clearest fit for growth exposure and long-term compounding.
- Rev growth 6.5%, EPS growth -1.7%, 3Y rev CAGR 15.3%
- 125.5% 10Y total return vs HMC's 25.6%
- PEG 0.00 vs HMC's 0.45
Best for: growth exposure and long-term compounding
See the full category breakdown
| Category | Winner | Why |
|---|---|---|
| Growth | TM | 6.5% revenue growth vs HMC's 6.2% |
| Value | TM | Lower P/E (0.1x vs 7.0x), PEG 0.00 vs 0.45 |
| Quality / Margins | TM | 9.4% margin vs HMC's 2.3% |
| Stability / Safety | HMC | Beta 0.96 vs TM's 1.06, lower leverage |
| Dividends | HMC | 5.9% yield, 4-year raise streak, vs TM's 2.9% |
| Momentum (1Y) | TM | +1.7% vs HMC's -16.5% |
| Efficiency (ROA) | TM | 4.7% ROA vs HMC's 1.5%, ROIC 5.6% vs 5.9% |
HMC vs TM — Revenue Breakdown by Segment
How each company's revenue is distributed across its business units
FY 2022
FY 2025
HMC vs TM — Financial Metrics
Side-by-side numbers across 2 stocks — who leads on profitability, valuation, growth, and risk.
BEST OVERALLHMCLAGGINGTM
TMToyota Motor Corporat…
2leads
HMCHonda Motor Co., Ltd.
2leads
6 Total Categories
CATEGORYLEADERvs TMMETRICS WON
Income & Cash FlowRevenue, margins, and cash flow strength
TM5/6
Valuation MetricsMultiples, price ratios, and targets
HMC4/5
Profitability & EfficiencyROE, ROIC, leverage, and quality scores
Tied
—
Total Returns1Y, 3Y, 5Y total returns with dividends
TM6/6
Risk & VolatilityBeta, volatility, and downside exposure
Tied
—
Analyst OutlookRatings, price targets, and dividends
HMC1/1
Income & Cash Flow (Last 12 Months)
TM leads this category, winning 5 of 6 comparable metrics.
Income & Cash Flow (Last 12 Months)
TM is the larger business by revenue, generating $49.39T annually — 2.3x HMC's $21.34T. 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., … | TMToyota Motor Corp… |
|---|---|---|
| RevenueTrailing 12 months | $21.34T | $49.39T |
| EBITDAEarnings before interest/tax | $1.52T | $6.59T |
| Net IncomeAfter-tax profit | $496.0B | $4.63T |
| Free Cash FlowCash after capex | $11.8B | $147.8B |
| Gross MarginGross profit ÷ Revenue | +20.6% | +18.0% |
| Operating MarginEBIT ÷ Revenue | +3.1% | +8.8% |
| Net MarginNet income ÷ Revenue | +2.3% | +9.4% |
| FCF MarginFCF ÷ Revenue | +0.1% | +0.3% |
| Rev. Growth (YoY)Latest quarter vs prior year | -3.4% | +8.2% |
| EPS Growth (YoY)Latest quarter vs prior year | -40.0% | +65.7% |
TM leads this category, winning 5 of 6 comparable metrics.
Valuation Metrics
HMC leads this category, winning 4 of 5 comparable metrics.
Valuation Metrics
At 7.0x trailing earnings, HMC trades at a 15% valuation discount to TM's 8.2x P/E. Adjusting for growth (PEG ratio), TM offers better value at 0.41x vs HMC's 0.45x — a lower PEG means you pay less per unit of expected earnings growth.
| Metric | HMCHonda Motor Co., … | TMToyota Motor Corp… |
|---|---|---|
| Market CapShares × price | $31.2B | $246.6B |
| Enterprise ValueMkt cap + debt − cash | $30.5B | $437.2B |
| Trailing P/EPrice ÷ TTM EPS | 7.01x | 8.23x |
| Forward P/EPrice ÷ next-FY EPS est. | — | 0.06x |
| PEG RatioP/E ÷ EPS growth rate | 0.45x | 0.41x |
| EV / EBITDAEnterprise value multiple | 2.44x | 9.70x |
| Price / SalesMarket cap ÷ Revenue | 0.23x | 0.80x |
| Price / BookPrice ÷ Book value/share | 0.46x | 1.05x |
| Price / FCFMarket cap ÷ FCF | — | — |
HMC leads this category, winning 4 of 5 comparable metrics.
Profitability & Efficiency
Evenly matched — HMC and TM each lead in 4 of 8 comparable metrics.
Profitability & Efficiency
TM delivers a 12.0% return on equity — every $100 of shareholder capital generates $12 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 TM's 1.05x.
| Metric | HMCHonda Motor Co., … | TMToyota Motor Corp… |
|---|---|---|
| ROE (TTM)Return on equity | +3.9% | +12.0% |
| ROA (TTM)Return on assets | +1.5% | +4.7% |
| ROICReturn on invested capital | +5.9% | +5.6% |
| ROCEReturn on capital employed | +5.6% | +7.7% |
| Piotroski ScoreFundamental quality 0–9 | 5 | 5 |
| Debt / EquityFinancial leverage | 0.35x | 1.05x |
| Net DebtTotal debt minus cash | -$106.6B | $29.81T |
| Cash & Equiv.Liquid assets | $4.53T | $8.98T |
| Total DebtShort + long-term debt | $4.42T | $38.79T |
| Interest CoverageEBIT ÷ Interest expense | 13.59x | 38.49x |
Evenly matched — HMC and TM each lead in 4 of 8 comparable metrics.
Total Returns (Dividends Reinvested)
TM leads this category, winning 6 of 6 comparable metrics.
Total Returns (Dividends Reinvested)
A $10,000 investment in TM five years ago would be worth $13,746 today (with dividends reinvested), compared to $9,680 for HMC. Over the past 12 months, TM leads with a +1.7% total return vs HMC's -16.5%. The 3-year compound annual growth rate (CAGR) favors TM at 13.7% vs HMC's 1.6% — a key indicator of consistent wealth creation.
| Metric | HMCHonda Motor Co., … | TMToyota Motor Corp… |
|---|---|---|
| YTD ReturnYear-to-date | -17.6% | -13.2% |
| 1-Year ReturnPast 12 months | -16.5% | +1.7% |
| 3-Year ReturnCumulative with dividends | +4.8% | +47.0% |
| 5-Year ReturnCumulative with dividends | -3.2% | +37.5% |
| 10-Year ReturnCumulative with dividends | +25.6% | +125.5% |
| CAGR (3Y)Annualised 3-year return | +1.6% | +13.7% |
TM leads this category, winning 6 of 6 comparable metrics.
Risk & Volatility
Evenly matched — HMC and TM each lead in 1 of 2 comparable metrics.
Risk & Volatility
HMC is the less volatile stock with a 0.96 beta — it tends to amplify market swings less than TM's 1.06 beta. A beta below 1.0 means the stock typically moves less than the S&P 500. TM currently trades 76.0% from its 52-week high vs HMC's 69.0% drawdown — a narrower gap to the peak suggests stronger recent price momentum.
| Metric | HMCHonda Motor Co., … | TMToyota Motor Corp… |
|---|---|---|
| Beta (5Y)Sensitivity to S&P 500 | 0.96x | 1.06x |
| 52-Week HighHighest price in past year | $34.89 | $248.90 |
| 52-Week LowLowest price in past year | $23.25 | $167.18 |
| % of 52W HighCurrent price vs 52-week peak | +69.0% | +76.0% |
| RSI (14)Momentum oscillator 0–100 | 50.7 | 41.2 |
| Avg Volume (50D)Average daily shares traded | 1.7M | 340K |
Evenly matched — HMC and TM each lead in 1 of 2 comparable metrics.
Analyst Outlook
HMC leads this category, winning 1 of 1 comparable metric.
Analyst Outlook
Wall Street rates HMC as "Hold" and TM as "Hold". Consensus price targets imply 31.0% upside for HMC (target: $32) vs -5.2% for TM (target: $179). For income investors, HMC offers the higher dividend yield at 5.94% vs TM's 2.92%.
| Metric | HMCHonda Motor Co., … | TMToyota Motor Corp… |
|---|---|---|
| Analyst RatingConsensus buy/hold/sell | Hold | Hold |
| Price TargetConsensus 12-month target | $31.51 | $179.41 |
| # AnalystsCovering analysts | 18 | 16 |
| Dividend YieldAnnual dividend ÷ price | +5.9% | +2.9% |
| Dividend StreakConsecutive years of raises | 4 | 4 |
| Dividend / ShareAnnual DPS | $223.36 | $863.50 |
| Buyback YieldShare repurchases ÷ mkt cap | 0.0% | +3.1% |
HMC leads this category, winning 1 of 1 comparable metric.
Key Takeaway
TM leads in 2 of 6 categories (Income & Cash Flow, Total Returns). HMC leads in 2 (Valuation Metrics, Analyst Outlook). 2 tied.
Best OverallHonda Motor Co., Ltd. (HMC)Leads 2 of 6 categories
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HMC vs TM: Frequently Asked Questions
10 questions · data-driven answers · updated daily
01Is HMC or TM a better buy right now?
For growth investors, Toyota Motor Corporation (TM) is the stronger pick with 6.
5% revenue growth year-over-year, versus 6. 2% for Honda Motor Co. , Ltd. (HMC). Honda Motor Co. , Ltd. (HMC) offers the better valuation at 7. 0x trailing P/E, 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 TM?
On trailing P/E, Honda Motor Co.
, Ltd. (HMC) is the cheapest at 7. 0x versus Toyota Motor Corporation at 8. 2x.
03Which is the better long-term investment — HMC or TM?
Over the past 5 years, Toyota Motor Corporation (TM) delivered a total return of +37.
5%, compared to -3. 2% for Honda Motor Co. , Ltd. (HMC). Over 10 years, the gap is even starker: TM returned +125. 5% versus HMC's +25. 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 TM?
By beta (market sensitivity over 5 years), Honda Motor Co.
, Ltd. (HMC) is the lower-risk stock at 0. 96β versus Toyota Motor Corporation's 1. 06β — meaning TM is approximately 10% 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 105% for Toyota Motor Corporation — giving it more financial flexibility in a downturn.
05Which is growing faster — HMC or TM?
By revenue growth (latest reported year), Toyota Motor Corporation (TM) is pulling ahead at 6.
5% versus 6. 2% for Honda Motor Co. , Ltd. (HMC). On earnings-per-share growth, the picture is similar: Toyota Motor Corporation grew EPS -1. 7% year-over-year, compared to -20. 8% for Honda Motor Co. , Ltd.. Over a 3-year CAGR, TM leads at 15. 3% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.
06Which has better profit margins — HMC 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 5. 6% for HMC. 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.
07Is HMC or TM more undervalued right now?
Analyst consensus price targets imply the most upside for HMC: 31.
0% to $31. 51.
08Which pays a better dividend — HMC or TM?
All stocks in this comparison pay dividends.
Honda Motor Co. , Ltd. (HMC) offers the highest yield at 5. 9%, versus 2. 9% for Toyota Motor Corporation (TM).
09Is HMC 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. 96), 5. 9% yield). Both have compounded well over 10 years (HMC: +25. 6%, TM: +125. 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.
10What are the main differences between HMC 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.
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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Revenue Growth>
%
(HMC: -3.4% · TM: 8.2%)Net Margin>
%
(HMC: 2.3% · TM: 9.4%)P/E Ratio<
x
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