Honda Motor Co Ltd ADR (HMC)vsToyota Motor Corporation ADR (TM)
HMC
Honda Motor Co Ltd ADR
$24.61
-0.81%
CONSUMER CYCLICAL · Cap: $32.55B
TM
Toyota Motor Corporation ADR
$209.11
-1.86%
CONSUMER CYCLICAL · Cap: $277.91B
Smart Verdict
WallStSmart Research — data-driven comparison
Toyota Motor Corporation ADR generates 136% more annual revenue ($50.45T vs $21.34T). TM leads profitability with a 7.3% profit margin vs 2.3%. TM appears more attractively valued with a PEG of 1.54. TM earns a higher WallStSmart Score of 53/100 (C-).
HMC
Hold39
out of 100
Grade: F
TM
Buy53
out of 100
Grade: C-
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Margin of Safety
-102.8%
Fair Value
$15.98
Current Price
$24.61
$8.63 premium
Margin of Safety
-97.4%
Fair Value
$120.90
Current Price
$209.11
$88.21 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Generating 160.9B in free cash flow
Mega-cap, among the largest globally
Attractively priced relative to earnings
Areas to Watch
Grey zone — moderate risk
ROE of 4.3% — below average capital efficiency
2.3% margin — thin
Operating margin of 2.9%
Expensive relative to growth rate
Trading at 11.2x book value
7.3% margin — thin
Earnings declined 42.3%
Comparative Analysis Report
WallStSmart ResearchBull Case : HMC
The strongest argument for HMC centers on P/E Ratio, Price/Book, Free Cash Flow.
Bull Case : TM
The strongest argument for TM centers on Market Cap, P/E Ratio.
Bear Case : HMC
The primary concerns for HMC are Altman Z-Score, Return on Equity, Profit Margin. Thin 2.3% margins leave little buffer for downturns.
Bear Case : TM
The primary concerns for TM are PEG Ratio, Price/Book, Profit Margin.
Key Dynamics to Monitor
TM carries more volatility with a beta of 0.20 — expect wider price swings.
TM is growing revenue faster at 8.6% — sustainability is the question.
HMC generates stronger free cash flow (160.9B), providing more financial flexibility.
Monitor AUTO MANUFACTURERS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
TM scores higher overall (53/100 vs 39/100). Both earn "Buy" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Honda Motor Co Ltd ADR
CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA
Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, electrical products, and other products in Japan, North America, Europe, Asia, and internationally. The company is headquartered in Tokyo, Japan.
Visit Website →Toyota Motor Corporation ADR
CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA
Toyota Motor Corporation designs, manufactures, assembles and sells passenger cars, minivans and commercial vehicles, and related parts and accessories. The company is headquartered in Toyota, Japan.
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