Head-To-Head Comparison: Honda Motor (NYSE:HMC) and Hino Motors (OTCMKTS:HINOY)

Honda Motor (NYSE:HMC) and Hino Motors (OTCMKTS:HINOY) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their profitability, earnings, dividends, risk, analyst recommendations, valuation and institutional ownership.

Institutional & Insider Ownership

5.3% of Honda Motor shares are held by institutional investors. 0.0% of Honda Motor shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a company is poised for long-term growth.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Honda Motor and Hino Motors, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Honda Motor	1	4	0	0	1.80
Hino Motors	0	0	0	0	0.00

Profitability

This table compares Honda Motor and Hino Motors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Honda Motor	2.95%	5.03%	2.10%
Hino Motors	-12.41%	-104.94%	-17.15%

Valuation & Earnings

This table compares Honda Motor and Hino Motors”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Honda Motor	$142.43 billion	0.37	$5.52 billion	$2.89	11.61
Hino Motors	$11.15 billion	N/A	-$1.44 billion	($23.85)	-0.94

Honda Motor has higher revenue and earnings than Hino Motors. Hino Motors is trading at a lower price-to-earnings ratio than Honda Motor, indicating that it is currently the more affordable of the two stocks.

Volatility and Risk

Honda Motor has a beta of 0.52, indicating that its share price is 48% less volatile than the S&P 500. Comparatively, Hino Motors has a beta of -0.04, indicating that its share price is 104% less volatile than the S&P 500.

Summary

Honda Motor beats Hino Motors on 11 of the 11 factors compared between the two stocks.

About Honda Motor

Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, power, and other products in Japan, North America, Europe, Asia, and internationally. It operates through four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Power Product and Other Businesses. The Motorcycle Business segment produces motorcycles, including sports, business, and commuter models; and various off-road vehicles, such as all-terrain vehicles and side-by-sides. The Automobile Business segment offers passenger cars, light trucks, and mini vehicles. The Financial Services Business segment provides various financial services, including retail lending and leasing services to customers, as well as wholesale financing services to dealers. The Power Product and Other Businesses manufactures and sells power products, such as general purpose engines, lawn mowers, generators, water pumps, brush cutters, tillers, outboard marine engines, and snow throwers. This segment also offers HondaJet aircraft. The company also sells spare parts; and provides after-sale services through retail dealers directly, as well as through independent distributors and licensees. Honda Motor Co., Ltd. was founded in 1946 and is headquartered in Tokyo, Japan.

About Hino Motors

Hino Motors, Ltd. manufactures and sells large commercial vehicles under the Hino brand worldwide. It offers trucks and buses; and light commercial vehicles and passenger vehicles, as well as various engines, service parts, etc. The company was founded in 1910 and is headquartered in Hino, Japan. Hino Motors, Ltd. operates as a subsidiary of Toyota Motor Corporation.