Honda Motor Co., Ltd. (HMC) vs Ferrari N.V. (RACE)

Honda Motor Co., Ltd. and Ferrari N.V. are both Auto Manufacturers companies. Ferrari N.V. is the larger, with a market value of $65.2B against $42.7B — 1.5× the size. Honda Motor Co., Ltd. trades at the lower P/E: 5.8× against 38.2×. Ferrari N.V. grew revenue faster over the last twelve months: 13.3% against 5.42%. Ferrari N.V. has the higher net margin (22.3% vs 5.65%) and the higher return on invested capital (25.6% vs 4.69%). Both pay a dividend; Honda Motor Co., Ltd. yields more (3.43% vs 0.66%). Across the 22 metrics below, Ferrari N.V. leads on 15 and Honda Motor Co., Ltd. on 7.

Valuation

Metric HMC RACE Auto Manufacturers median
P/E 5.77 38.18 8.14
P/S 0.29 8.44 0.90
P/B 0.54 17.01 1.16
Price to free cash flow n/m 43.91 19.78
EV/EBITDA 6.52 22.48 7.18
EV/Sales 0.67 8.67 1.49
Earnings yield 17.34% 2.62% (6.65%)
Free cash flow yield (2.98%) 2.28% (16.79%)

Profitability

Metric HMC RACE Auto Manufacturers median
Gross margin 21.40% 51.63% 7.51%
Operating margin 6.94% 29.51% (10.38%)
Net margin 5.65% 22.27% (4.32%)
Free cash flow margin (0.87%) 19.23% 0.00%
Return on equity 9.82% 46.14% 0.00%
Return on assets 3.89% 16.75% (6.30%)
Return on invested capital 4.69% 25.59% 0.00%

Growth

Metric HMC RACE Auto Manufacturers median
Revenue growth (TTM) 5.42% 13.31% 5.42%
EPS growth (last fiscal year) (159.77%) 10.59% —
Revenue growth, 5-year CAGR 3.05% 15.39% 10.46%
Net income growth, 5-year CAGR 0.00% 21.08% 0.00%

Health

Metric HMC RACE Auto Manufacturers median
Debt to equity 1.11 0.86 0.25
Current ratio 1.29 4.85 1.10
Net debt to EBITDA 9.46 0.48 (0.04)

Dividend

Metric HMC RACE Auto Manufacturers median
Dividend yield 3.43% 0.66% 3.24%
Payout ratio 0.24 0.31 0.00

Size

Metric HMC RACE Auto Manufacturers median
Market cap 42.65b 65.16b 81.09m

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