Porsche Automobil (OTCMKTS:POAHY) and Honda Motor (NYSE:HMC) Financial Survey

Honda Motor (NYSE:HMC) and Porsche Automobil (OTCMKTS:POAHY) are both large-cap auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their profitability, dividends, institutional ownership, earnings, analyst recommendations, valuation and risk.

Analyst Recommendations

This is a breakdown of current ratings and price targets for Honda Motor and Porsche Automobil, as reported by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Honda Motor	3	3	0	1	1.86
Porsche Automobil	0	4	0	0	2.00

Honda Motor currently has a consensus price target of $25.00, suggesting a potential downside of 0.02%. Given Honda Motor’s higher possible upside, research analysts plainly believe Honda Motor is more favorable than Porsche Automobil.

Insider and Institutional Ownership

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

Volatility and Risk

Honda Motor has a beta of 0.43, meaning that its share price is 57% less volatile than the S&P 500. Comparatively, Porsche Automobil has a beta of 1.04, meaning that its share price is 4% more volatile than the S&P 500.

Profitability

This table compares Honda Motor and Porsche Automobil’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Honda Motor	2.34%	4.01%	1.60%
Porsche Automobil	N/A	N/A	N/A

Earnings & Valuation

This table compares Honda Motor and Porsche Automobil”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Honda Motor	$142.43 billion	0.27	$5.52 billion	$2.51	9.96
Porsche Automobil	$3.33 billion	3.58	$3.00 billion	N/A	N/A

Honda Motor has higher revenue and earnings than Porsche Automobil.

Dividends

Honda Motor pays an annual dividend of $1.04 per share and has a dividend yield of 4.2%. Porsche Automobil pays an annual dividend of $0.11 per share and has a dividend yield of 2.8%. Honda Motor pays out 41.4% of its earnings in the form of a dividend.

Summary

Honda Motor beats Porsche Automobil on 10 of the 14 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 Porsche Automobil

Porsche Automobil Holding SE, through its subsidiaries, operates as an automobile manufacturer worldwide. It operates in two segments, Core Investments and Portfolio Investments. The company is involved in investments in the areas of mobility and industrial technology. It offers its products under the Volkswagen, Audi, SEAT, KODA, Bentley, Lamborghini, and Porsche brand names. The company was formerly known as Dr. Ing. h.c. F. Porsche Aktiengesellschaft and changed its name to Porsche Automobil Holding SE in November 2007. Porsche Automobil Holding SE was founded in 2007 and is headquartered in Stuttgart, Germany.