Comprehensive Stock Comparison

Compare Honda Motor Co., Ltd. (HMC) vs Tesla, Inc. (TSLA) Stock

Analyze side-by-side fundamentals, valuation, growth, and profitability to decide which stock is the better buy.

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Quick Verdict

CategoryWinnerWhy
GrowthHMC6.2% revenue growth vs TSLA's -2.9%
ValueHMCLower P/E (0.1x vs 202.8x), PEG 0.01 vs 5.23
Quality / MarginsTSLA4.0% net margin vs HMC's 2.3%
Stability / SafetyHMCBeta 0.83 vs TSLA's 2.16
DividendsHMC4.7% yield; 4-year raise streak; TSLA pays no meaningful dividend
Momentum (1Y)TSLA+37.4% vs HMC's +13.1%
Efficiency (ROA)TSLA2.8% ROA vs HMC's 1.5%, ROIC 4.5% vs 5.9%
Bottom line: HMC leads in 4 of 7 categories, making it the stronger pick for investors who prioritize growth and revenue expansion and valuation and capital efficiency. Tesla, Inc. is the better choice for profitability and margin quality and recent price momentum and sentiment. As direct sector peers, they can serve as alternatives in the same portfolio allocation.

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

HMCHonda Motor Co., Ltd.
Consumer Cyclical

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.

TSLATesla, Inc.
Consumer Cyclical

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.

Revenue Breakdown by Segment

How each company's revenue is distributed across its business units

HMCHonda Motor Co., Ltd.
FY 2022
automobiles and relevant parts
72.7%$10.58T
motorcycles and relevant parts
14.2%$2.07T
financial services
9.5%$1.39T
Power Products And Relevant Parts
2.0%$294.6B
All- Terrain Vehicles and Relevant Parts
0.8%$118.7B
Other Products And Services
0.7%$104.7B
TSLATesla, Inc.
FY 2025
Automotive
73.3%$69.5B
Energy Generation And Storage Segment
13.5%$12.8B
Services And Other
13.2%$12.5B

Financial Metrics Comparison

Side-by-side fundamentals across 2 stocks. BestLagging

Financial Scorecard

TSLA 3HMC 2
Financial MetricsTSLA4/6 metrics
Valuation MetricsHMC6/6 metrics
Profitability & EfficiencyTSLA6/9 metrics
Total ReturnsTSLA5/6 metrics
Risk & VolatilityHMC2/2 metrics
Analyst Outlook0/0 metrics

TSLA leads in 3 of 6 categories (Financial Metrics, Profitability & Efficiency). HMC leads in 2 (Valuation Metrics, Risk & Volatility).

Financial Metrics (TTM)

HMC is the larger business by revenue, generating $21.34T annually — 225.0x TSLA's $94.8B. Profitability is closely matched — net margins range from 4.0% (TSLA) to 2.3% (HMC).

MetricHMCHonda Motor Co., …TSLATesla, Inc.
RevenueTrailing 12 months$21.34T$94.8B
EBITDAEarnings before interest/tax$1.52T$10.5B
Net IncomeAfter-tax profit$496.0B$3.8B
Free Cash FlowCash after capex$11.8B$6.2B
Gross MarginGross profit ÷ Revenue+20.6%+18.0%
Operating MarginEBIT ÷ Revenue+3.1%+4.6%
Net MarginNet income ÷ Revenue+2.3%+4.0%
FCF MarginFCF ÷ Revenue+0.1%+6.6%
Rev. Growth (YoY)Latest quarter vs prior year-3.4%-3.1%
EPS Growth (YoY)Latest quarter vs prior year-40.0%-63.5%
TSLA leads this category, winning 4 of 6 comparable metrics.

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), HMC offers better value at 0.56x vs TSLA's 9.62x — a lower PEG means you pay less per unit of expected earnings growth.

MetricHMCHonda Motor Co., …TSLATesla, Inc.
Market CapShares × price$39.1B$1.51T
Enterprise ValueMkt cap + debt − cash$38.5B$1.50T
Trailing P/EPrice ÷ TTM EPS8.77x372.69x
Forward P/EPrice ÷ next-FY EPS est.0.08x202.78x
PEG RatioP/E ÷ EPS growth rate0.56x9.62x
EV / EBITDAEnterprise value multiple3.07x142.98x
Price / SalesMarket cap ÷ Revenue0.28x15.92x
Price / BookPrice ÷ Book value/share0.58x17.19x
Price / FCFMarket cap ÷ FCF242.74x
HMC leads this category, winning 6 of 6 comparable metrics.

Profitability & Efficiency

TSLA delivers a 4.6% return on equity — every $100 of shareholder capital generates $5 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 HMC's 0.35x. On the Piotroski fundamental quality scale (0–9), TSLA scores 6/9 vs HMC's 5/9, reflecting solid financial health.

MetricHMCHonda Motor Co., …TSLATesla, Inc.
ROE (TTM)Return on equity+3.9%+4.6%
ROA (TTM)Return on assets+1.5%+2.8%
ROICReturn on invested capital+5.9%+4.5%
ROCEReturn on capital employed+5.6%+4.4%
Piotroski ScoreFundamental quality 0–956
Debt / EquityFinancial leverage0.35x0.10x
Net DebtTotal debt minus cash-$106.6B-$8.1B
Cash & Equiv.Liquid assets$4.53T$16.5B
Total DebtShort + long-term debt$4.42T$8.4B
Interest CoverageEBIT ÷ Interest expense13.59x16.62x
TSLA leads this category, winning 6 of 9 comparable metrics.

Total Returns (with DRIP)

A $10,000 investment in TSLA five years ago would be worth $16,808 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.

MetricHMCHonda Motor Co., …TSLATesla, Inc.
YTD ReturnYear-to-date+0.7%-8.1%
1-Year ReturnPast 12 months+13.1%+37.4%
3-Year ReturnCumulative with dividends+30.4%+95.7%
5-Year ReturnCumulative with dividends+25.6%+68.1%
10-Year ReturnCumulative with dividends+56.6%+3044.6%
CAGR (3Y)Annualised 3-year return+9.2%+25.1%
TSLA leads this category, winning 5 of 6 comparable metrics.

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. HMC currently trades 86.4% from its 52-week high vs TSLA's 80.7% drawdown — a narrower gap to the peak suggests stronger recent price momentum.

MetricHMCHonda Motor Co., …TSLATesla, Inc.
Beta (5Y)Sensitivity to S&P 5000.83x2.16x
52-Week HighHighest price in past year$34.89$498.83
52-Week LowLowest price in past year$24.56$214.25
% of 52W HighCurrent price vs 52-week peak+86.4%+80.7%
RSI (14)Momentum oscillator 0–10044.644.1
Avg Volume (50D)Average daily shares traded939K52.3M
HMC leads this category, winning 2 of 2 comparable metrics.

Analyst Outlook

Wall Street rates HMC as "Hold" and TSLA as "Hold". Consensus price targets imply 14.0% upside for TSLA (target: $459) vs 4.5% for HMC (target: $32). HMC is the only dividend payer here at 4.74% yield — a key consideration for income-focused portfolios.

MetricHMCHonda Motor Co., …TSLATesla, Inc.
Analyst RatingConsensus buy/hold/sellHoldHold
Price TargetConsensus 12-month target$31.51$458.67
# AnalystsCovering analysts1880
Dividend YieldAnnual dividend ÷ price+4.7%
Dividend StreakConsecutive years of raises4
Dividend / ShareAnnual DPS$223.36
Buyback YieldShare repurchases ÷ mkt cap0.0%0.0%
Insufficient data to determine a leader in this category.

Historical Charts

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Chart 1Total Return — 5 Years (Rebased to 100)

StockMar 20Feb 26Change
Honda Motor Co., Lt… (HMC)100118.42+18.4%
Tesla, Inc. (TSLA)100850.94+750.9%

Tesla, Inc. (TSLA) returned +68% over 5 years vs Honda Motor Co., Lt… (HMC)'s +26%. A $10,000 investment in TSLA 5 years ago would be worth $16,808 today (including dividends reinvested).

Chart 2Revenue Growth — 10 Years

Stock20162025Change
Honda Motor Co., Lt… (HMC)$14.6T$21.7T+48.5%
Tesla, Inc. (TSLA)$7.0B$94.8B+1254.6%

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

Stock20162025Change
Honda Motor Co., Lt… (HMC)2.4%3.9%+63.3%
Tesla, Inc. (TSLA)-9.6%4.0%+141.5%

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

Stock20172025Change
Honda Motor Co., Lt… (HMC)0.10.1+0.0%
Tesla, Inc. (TSLA)216.1416.4+92.7%

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

Stock20162025Change
Honda Motor Co., Lt… (HMC)191.16536.79+180.8%
Tesla, Inc. (TSLA)-0.311.08+448.4%

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

2021
$521B
$3B
2022
$1230B
$8B
2023
$1497B
$4B
2024
$139B
$4B
2025
$-555B
$6B
Honda Motor Co., Lt… (HMC)Tesla, Inc. (TSLA)

Honda Motor Co., Ltd. generated $-555B FCF in 2025 (-207% vs 2021). Tesla, Inc. generated $6B FCF in 2025 (+79% vs 2021).

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HMC vs TSLA: Frequently Asked Questions

9 questions · data-driven answers · updated daily

01

Is HMC or TSLA 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.

02

Which has the better valuation — HMC or TSLA?

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: Honda Motor Co., Ltd. wins at 0.01x versus Tesla, Inc.'s 5.23x — a PEG below 1.0 traditionally signals the market is underpricing earnings growth.

03

Which is the better long-term investment — HMC or TSLA?

Over the past 5 years, Tesla, Inc. (TSLA) delivered a total return of +68.1%, compared to +25.6% for Honda Motor Co., Ltd. (HMC). A $10,000 investment in TSLA five years ago would be worth approximately $17K 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.

04

Which is safer — HMC or TSLA?

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 35% for Honda Motor Co., Ltd. — giving it more financial flexibility in a downturn.

05

Which has better profit margins — HMC or TSLA?

Tesla, Inc. (TSLA) is the more profitable company, earning 4.0% net margin versus 3.9% for Honda Motor Co., Ltd. — meaning it keeps 4.0% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: HMC leads at 5.6% 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.

06

Is HMC or TSLA 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, Honda Motor Co., Ltd. (HMC) is the more undervalued stock at a PEG of 0.01x 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.

07

Which pays a better dividend — HMC or TSLA?

In this comparison, HMC (4.7% yield) pays a dividend. TSLA does not pay a meaningful dividend and should not be held primarily for income.

08

Is HMC or TSLA 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.

09

What are the main differences between HMC and TSLA?

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. HMC pays 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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  • Gross Margin > 12%
  • Dividend Yield > 1.8%
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Better Than Both

Find stocks that beat HMC and TSLA on the metrics you choose

Revenue Growth>
%
(HMC: -3.4% · TSLA: -3.1%)
Net Margin>
%
(HMC: 2.3% · TSLA: 4.0%)
P/E Ratio<
x
(HMC: 8.8x · TSLA: 372.7x)