WallStSmart

Honda Motor Co Ltd ADR (HMC)vsThe Wendy’s Co (WEN)

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Smart Verdict

WallStSmart Research — data-driven comparison

Honda Motor Co Ltd ADR generates 980000% more annual revenue ($21.34T vs $2.18B). WEN leads profitability with a 7.6% profit margin vs 2.3%. WEN appears more attractively valued with a PEG of 1.16. WEN earns a higher WallStSmart Score of 52/100 (C-).

HMC

Hold

39

out of 100

Grade: F

Growth: 4.0Profit: 4.0Value: 5.7Quality: 4.5
Piotroski: 3/9Altman Z: 1.90

WEN

Buy

52

out of 100

Grade: C-

Growth: 2.7Profit: 6.5Value: 8.7Quality: 5.0
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Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for HMC.

WENUndervalued (+48.4%)

Margin of Safety

+48.4%

Fair Value

$15.28

Current Price

$6.76

$8.52 discount

UndervaluedFair: $15.28Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HMC3 strengths · Avg: 10.0/10
P/E RatioValuation
10.3x10/10

Attractively priced relative to earnings

Price/BookValuation
0.4x10/10

Reasonable price relative to book value

Free Cash FlowQuality
$160.92B10/10

Generating 160.9B in free cash flow

WEN2 strengths · Avg: 10.0/10
P/E RatioValuation
8.0x10/10

Attractively priced relative to earnings

Return on EquityProfitability
87.6%10/10

Every $100 of equity generates 88 in profit

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%

WEN4 concerns · Avg: 3.0/10
Price/BookValuation
10.9x4/10

Trading at 10.9x book value

Market CapQuality
$1.29B3/10

Smaller company, higher risk/reward

Profit MarginProfitability
7.6%3/10

7.6% margin — thin

Revenue GrowthGrowth
-5.5%2/10

Revenue declined 5.5%

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 : WEN

The strongest argument for WEN centers on P/E Ratio, Return on Equity. PEG of 1.16 suggests the stock is reasonably priced for its growth.

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 : WEN

The primary concerns for WEN are Price/Book, Market Cap, Profit Margin.

Key Dynamics to Monitor

WEN carries more volatility with a beta of 0.41 — expect wider price swings.

HMC is growing revenue faster at -3.4% — 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

WEN scores higher overall (52/100 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.

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The Wendy’s Co

CONSUMER CYCLICAL · RESTAURANTS · USA

The Wendy's Company, is a quick service restaurant business. The company is headquartered in Dublin, Ohio.

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