WallStSmart

Honda Motor Co Ltd ADR (HMC)vsTesla Inc (TSLA)

VS

Smart Verdict

WallStSmart Research — data-driven comparison

Honda Motor Co Ltd ADR generates 22400% more annual revenue ($21.34T vs $94.83B). TSLA leads profitability with a 4.0% profit margin vs 2.3%. HMC appears more attractively valued with a PEG of 3.45. HMC earns a higher WallStSmart Score of 39/100 (F).

HMC

Hold

39

out of 100

Grade: F

Growth: 4.0Profit: 5.5Value: 4.7Quality: 6.0
Piotroski: 3/9Altman Z: 1.90

TSLA

Avoid

23

out of 100

Grade: F

Growth: 3.3Profit: 4.0Value: 2.0Quality: 7.5
Piotroski: 3/9Altman Z: 2.45
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

HMCSignificantly Overvalued (-102.8%)

Margin of Safety

-102.8%

Fair Value

$15.98

Current Price

$24.61

$8.63 premium

UndervaluedFair: $15.98Overvalued
TSLASignificantly Overvalued (-5251.2%)

Margin of Safety

-5251.2%

Fair Value

$7.34

Current Price

$392.78

$385.44 premium

UndervaluedFair: $7.34Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HMC3 strengths · Avg: 10.0/10
P/E RatioValuation
10.6x10/10

Attractively priced relative to earnings

Price/BookValuation
1.2x10/10

Reasonable price relative to book value

Free Cash FlowQuality
$160.92B10/10

Generating 160.9B in free cash flow

TSLA3 strengths · Avg: 9.0/10
Market CapQuality
$1.50T10/10

Mega-cap, among the largest globally

Debt/EquityHealth
0.109/10

Conservative balance sheet, low leverage

Free Cash FlowQuality
$1.42B8/10

Generating 1.4B in free cash flow

Areas to Watch

HMC4 concerns · Avg: 3.3/10
Altman Z-ScoreHealth
1.904/10

Grey zone — moderate risk

Return on EquityProfitability
4.3%3/10

ROE of 4.3% — below average capital efficiency

Profit MarginProfitability
2.3%3/10

2.3% margin — thin

Operating MarginProfitability
2.9%3/10

Operating margin of 2.9%

TSLA4 concerns · Avg: 3.3/10
Price/BookValuation
17.9x4/10

Trading at 17.9x book value

Return on EquityProfitability
4.9%3/10

ROE of 4.9% — below average capital efficiency

Profit MarginProfitability
4.0%3/10

4.0% margin — thin

Operating MarginProfitability
4.7%3/10

Operating margin of 4.7%

Comparative Analysis Report

WallStSmart Research

Bull Case : HMC

The strongest argument for HMC centers on P/E Ratio, Price/Book, Free Cash Flow.

Bull Case : TSLA

The strongest argument for TSLA centers on Market Cap, Debt/Equity, Free Cash Flow.

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 : TSLA

The primary concerns for TSLA are Price/Book, Return on Equity, Profit Margin. A P/E of 369.7x leaves little room for execution misses. Thin 4.0% margins leave little buffer for downturns.

Key Dynamics to Monitor

TSLA carries more volatility with a beta of 1.93 — expect wider price swings.

TSLA is growing revenue faster at -3.1% — 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

HMC scores higher overall (39/100 vs 23/100). Both earn "Hold" and "Avoid" 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 →

Tesla Inc

CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA

Tesla, Inc. is an American electric vehicle and clean energy company based in Palo Alto, California. Tesla's current products include electric cars, battery energy storage from home to grid-scale, solar panels and solar roof tiles, as well as other related products and services. In 2020, Tesla had the highest sales in the plug-in and battery electric passenger car segments, capturing 16% of the plug-in market (which includes plug-in hybrids) and 23% of the battery-electric (purely electric) market. Through its subsidiary Tesla Energy, the company develops and is a major installer of solar photovoltaic energy generation systems in the United States. Tesla Energy is also one of the largest global suppliers of battery energy storage systems, with 3 GWh of battery storage supplied in 2020.

Visit Website →

Want to dig deeper into these stocks?