Honda Motor Co., Ltd. (HMC) vs Toyota Motor Corporation (TM)

Honda Motor Co., Ltd. and Toyota Motor Corporation are both Auto Manufacturers companies. Toyota Motor Corporation is the larger, with a market value of $222.7B against $42.7B — 5.2× the size. Honda Motor Co., Ltd. trades at the lower P/E: 5.8× against 8.1×. Honda Motor Co., Ltd. grew revenue faster over the last twelve months: 5.42% against 2.31%. Toyota Motor Corporation has the higher net margin (9.45% vs 5.65%) and the lower return on invested capital (4.40% vs 4.69%). Both pay a dividend; Honda Motor Co., Ltd. yields more (3.43% vs 2.53%). Across the 22 metrics below, Honda Motor Co., Ltd. leads on 12 and Toyota Motor Corporation on 10.

Valuation

Metric HMC TM Auto Manufacturers median
P/E 5.77 8.14 8.14
P/S 0.29 0.73 0.90
P/B 0.54 0.97 1.16
Price to free cash flow n/m 19.78 19.78
EV/EBITDA 6.52 9.25 7.18
EV/Sales 0.67 1.34 1.49
Earnings yield 17.34% 12.28% (6.65%)
Free cash flow yield (2.98%) 5.05% (16.79%)

Profitability

Metric HMC TM Auto Manufacturers median
Gross margin 21.40% 19.14% 7.51%
Operating margin 6.94% 9.57% (10.38%)
Net margin 5.65% 9.45% (4.32%)
Free cash flow margin (0.87%) 3.69% 0.00%
Return on equity 9.82% 12.45% 0.00%
Return on assets 3.89% 4.74% (6.30%)
Return on invested capital 4.69% 4.40% 0.00%

Growth

Metric HMC TM Auto Manufacturers median
Revenue growth (TTM) 5.42% 2.31% 5.42%
EPS growth (last fiscal year) (159.77%) (16.94%) —
Revenue growth, 5-year CAGR 3.05% 5.51% 10.46%
Net income growth, 5-year CAGR 0.00% 3.77% 0.00%

Health

Metric HMC TM Auto Manufacturers median
Debt to equity 1.11 1.15 0.25
Current ratio 1.29 1.17 1.10
Net debt to EBITDA 9.46 4.31 (0.04)

Dividend

Metric HMC TM Auto Manufacturers median
Dividend yield 3.43% 2.53% 3.24%
Payout ratio 0.24 0.26 0.00

Size

Metric HMC TM Auto Manufacturers median
Market cap 42.65b 222.72b 81.09m

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