Honda Motor Co., Ltd. (HMC) vs Li Auto Inc. Sponsored ADR (LI)

Honda Motor Co., Ltd. and Li Auto Inc. Sponsored ADR are both Auto Manufacturers companies. Honda Motor Co., Ltd. is the larger, with a market value of $42.7B against $9.9B — 4.3× the size. Li Auto Inc. Sponsored ADR has negative trailing earnings, so its P/E is not meaningful; Honda Motor Co., Ltd. trades at 5.8×. Honda Motor Co., Ltd. grew revenue faster over the last twelve months: 5.42% against −15.8%. Honda Motor Co., Ltd. has the higher net margin (5.65% vs −4.32%) and the higher return on invested capital (4.69% vs 0.00%). Across the 18 metrics below, Honda Motor Co., Ltd. leads on 12 and Li Auto Inc. Sponsored ADR on 6.

Valuation

Metric HMC LI Auto Manufacturers median
P/E 5.77 n/m 8.14
P/S 0.29 0.75 0.90
P/B 0.54 1.11 1.16
Price to free cash flow n/m n/m 19.78
EV/EBITDA 6.52 n/m 7.18
EV/Sales 0.67 0.00 1.49
Earnings yield 17.34% (5.76%) (6.65%)
Free cash flow yield (2.98%) (23.30%) (16.79%)

Profitability

Metric HMC LI Auto Manufacturers median
Gross margin 21.40% 13.66% 7.51%
Operating margin 6.94% (6.51%) (10.38%)
Net margin 5.65% (4.32%) (4.32%)
Free cash flow margin (0.87%) (9.52%) 0.00%
Return on equity 9.82% 0.00% 0.00%
Return on assets 3.89% (3.07%) (6.30%)
Return on invested capital 4.69% 0.00% 0.00%

Growth

Metric HMC LI Auto Manufacturers median
Revenue growth (TTM) 5.42% (15.79%) 5.42%
EPS growth (last fiscal year) (159.77%) (85.58%) —
Revenue growth, 5-year CAGR 3.05% 61.78% 10.46%
Net income growth, 5-year CAGR 0.00% 0.00% 0.00%

Health

Metric HMC LI Auto Manufacturers median
Debt to equity 1.11 0.11 0.25
Current ratio 1.29 1.81 1.10
Net debt to EBITDA 9.46 (22.21) (0.04)

Dividend

Metric HMC LI Auto Manufacturers median
Dividend yield 3.43% — 3.24%
Payout ratio 0.24 0.00 0.00

Size

Metric HMC LI Auto Manufacturers median
Market cap 42.65b 9.91b 81.09m

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