HMC vs. IP: A Head-to-Head Stock Comparison

Updated on August 28, 2025

Here’s a clear look at HMC and IP, comparing key factors like historical performance, profitability, financial strength, growth, dividend, and valuation.

Company Profile

HMC trades as an American Depositary Receipt (ADR), offering U.S. investors a convenient way to access its foreign-listed shares. In contrast, IP is a standard domestic listing.

Symbol	HMC	IP
Company Name	Honda Motor Co., Ltd.	International Paper Company
Country	Japan	United States
GICS Sector	Consumer Discretionary	Materials
GICS Industry	Automobiles	Containers & Packaging
Market Capitalization	45.61 billion USD	26.08 billion USD
Exchange	NYSE	NYSE
Listing Date	March 17, 1980	January 2, 1962
Security Type	ADR	Common Stock

Historical Performance

This chart compares the performance of HMC and IP by tracking the growth of an initial $10,000 investment in each. Use the tabs to select the desired time period. Data is adjusted for dividends and splits.

HMC vs. IP: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

Symbol	HMC	IP
5-Day Price Return	0.96%	4.37%
13-Week Price Return	18.66%	1.56%
26-Week Price Return	17.09%	-13.58%
52-Week Price Return	36.87%	2.98%
Month-to-Date Return	7.01%	5.67%
Year-to-Date Return	9.38%	-8.23%
10-Day Avg. Volume	17.41M	3.85M
3-Month Avg. Volume	19.07M	4.34M
3-Month Volatility	33.37%	35.71%
Beta	1.20	1.12

Profitability

Return on Equity (TTM)

HMC

6.53%

Automobiles Industry

Max: 25.70%
Q3: 12.88%
Median: 6.92%
Q1: 0.71%
Min: -15.89%

HMC’s Return on Equity of 6.53% is on par with the norm for the Automobiles industry, indicating its profitability relative to shareholder equity is typical for the sector.

IP

-0.20%

Containers & Packaging Industry

Max: 41.66%
Q3: 20.76%
Median: 14.35%
Q1: 6.55%
Min: 3.64%

IP has a negative Return on Equity of -0.20%. This indicates the company is generating a loss for its shareholders, which can be a result of unprofitability or negative shareholder equity and is often a sign of financial distress.

HMC vs. IP: A comparison of their Return on Equity (TTM) against their respective Automobiles and Containers & Packaging industry benchmarks.

Net Profit Margin (TTM)

HMC

3.85%

Automobiles Industry

Max: 9.92%
Q3: 5.78%
Median: 3.23%
Q1: 0.11%
Min: -5.31%

HMC’s Net Profit Margin of 3.85% is aligned with the median group of its peers in the Automobiles industry. This indicates its ability to convert revenue into profit is typical for the sector.

IP

-0.12%

Containers & Packaging Industry

Max: 11.61%
Q3: 8.17%
Median: 4.91%
Q1: 4.20%
Min: 0.08%

IP has a negative Net Profit Margin of -0.12%, indicating the company is operating at a net loss as its expenses exceeded its revenues.

HMC vs. IP: A comparison of their Net Profit Margin (TTM) against their respective Automobiles and Containers & Packaging industry benchmarks.

Operating Profit Margin (TTM)

HMC

5.59%

Automobiles Industry

Max: 13.07%
Q3: 7.22%
Median: 5.29%
Q1: 0.43%
Min: -4.46%

HMC’s Operating Profit Margin of 5.59% is around the midpoint for the Automobiles industry, indicating that its efficiency in managing core business operations is typical for the sector.

IP

-0.07%

Containers & Packaging Industry

Max: 22.03%
Q3: 13.17%
Median: 8.87%
Q1: 6.86%
Min: 0.07%

IP has a negative Operating Profit Margin of -0.07%. This signifies the company is unprofitable at the operational level, as its core business expenses exceed its revenue.

HMC vs. IP: A comparison of their Operating Profit Margin (TTM) against their respective Automobiles and Containers & Packaging industry benchmarks.

Profitability at a Glance

Symbol	HMC	IP
Return on Equity (TTM)	6.53%	-0.20%
Return on Assets (TTM)	2.72%	-0.08%
Net Profit Margin (TTM)	3.85%	-0.12%
Operating Profit Margin (TTM)	5.59%	-0.07%
Gross Profit Margin (TTM)	21.50%	28.30%

Financial Strength

Current Ratio (MRQ)

HMC

1.36

Automobiles Industry

Max: 2.19
Q3: 1.54
Median: 1.26
Q1: 1.09
Min: 0.48

HMC’s Current Ratio of 1.36 aligns with the median group of the Automobiles industry, indicating that its short-term liquidity is in line with its sector peers.

IP

1.33

Containers & Packaging Industry

Max: 2.13
Q3: 1.57
Median: 1.27
Q1: 1.13
Min: 0.58

IP’s Current Ratio of 1.33 aligns with the median group of the Containers & Packaging industry, indicating that its short-term liquidity is in line with its sector peers.

HMC vs. IP: A comparison of their Current Ratio (MRQ) against their respective Automobiles and Containers & Packaging industry benchmarks.

Debt-to-Equity Ratio (MRQ)

HMC

0.93

Automobiles Industry

Max: 2.34
Q3: 1.13
Median: 0.58
Q1: 0.28
Min: 0.06

HMC’s Debt-to-Equity Ratio of 0.93 is typical for the Automobiles industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

IP

0.53

Containers & Packaging Industry

Max: 4.50
Q3: 2.23
Median: 1.22
Q1: 0.54
Min: 0.23

Falling into the lower quartile for the Containers & Packaging industry, IP’s Debt-to-Equity Ratio of 0.53 points to a conservative financing strategy. This results in lower financial risk but potentially limits strategic investments compared to more leveraged competitors.

HMC vs. IP: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Automobiles and Containers & Packaging industry benchmarks.

Interest Coverage Ratio (TTM)

HMC

685.89

Automobiles Industry

Max: 77.87
Q3: 42.86
Median: 13.88
Q1: 2.13
Min: -49.07

With an Interest Coverage Ratio of 685.89, HMC demonstrates a superior capacity to service its debt, placing it well above the typical range for the Automobiles industry. This stems from either robust earnings or a conservative debt load.

IP

1.71

Containers & Packaging Industry

Max: 13.16
Q3: 8.10
Median: 3.61
Q1: 2.94
Min: 1.06

In the lower quartile for the Containers & Packaging industry, IP’s Interest Coverage Ratio of 1.71 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

HMC vs. IP: A comparison of their Interest Coverage Ratio (TTM) against their respective Automobiles and Containers & Packaging industry benchmarks.

Financial Strength at a Glance

Symbol	HMC	IP
Current Ratio (MRQ)	1.36	1.33
Quick Ratio (MRQ)	1.07	0.96
Debt-to-Equity Ratio (MRQ)	0.93	0.53
Interest Coverage Ratio (TTM)	685.89	1.71

Growth

Revenue Growth

HMC vs. IP: A side-by-side comparison of their Revenue Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

EPS Growth

HMC vs. IP: A side-by-side comparison of their EPS Growth for the MRQ (YoY), TTM (YoY), 3-Year CAGR, and 5-Year CAGR periods.

Dividend

Dividend Yield (TTM)

HMC

4.32%

Automobiles Industry

Max: 10.71%
Q3: 5.39%
Median: 3.14%
Q1: 0.00%
Min: 0.00%

HMC’s Dividend Yield of 4.32% is consistent with its peers in the Automobiles industry, providing a dividend return that is standard for its sector.

IP

3.25%

Containers & Packaging Industry

Max: 7.37%
Q3: 4.07%
Median: 3.33%
Q1: 1.72%
Min: 0.00%

IP’s Dividend Yield of 3.25% is consistent with its peers in the Containers & Packaging industry, providing a dividend return that is standard for its sector.

HMC vs. IP: A comparison of their Dividend Yield (TTM) against their respective Automobiles and Containers & Packaging industry benchmarks.

Dividend Payout Ratio (TTM)

HMC

49.32%

Automobiles Industry

Max: 114.43%
Q3: 59.30%
Median: 37.15%
Q1: 16.40%
Min: 0.00%

HMC’s Dividend Payout Ratio of 49.32% is within the typical range for the Automobiles industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

IP

180.00%

Containers & Packaging Industry

Max: 221.20%
Q3: 119.52%
Median: 58.05%
Q1: 28.91%
Min: 0.00%

IP’s Dividend Payout Ratio of 180.00% is in the upper quartile for the Containers & Packaging industry. This indicates a strong commitment to shareholder returns but also suggests that a smaller portion of earnings is retained for reinvestment compared to many peers.

HMC vs. IP: A comparison of their Dividend Payout Ratio (TTM) against their respective Automobiles and Containers & Packaging industry benchmarks.

Dividend at a Glance

Symbol	HMC	IP
Dividend Yield (TTM)	4.32%	3.25%
Dividend Payout Ratio (TTM)	49.32%	180.00%

Valuation

Price-to-Earnings Ratio (TTM)

HMC

9.63

Automobiles Industry

Max: 27.69
Q3: 19.99
Median: 9.85
Q1: 6.60
Min: 4.25

HMC’s P/E Ratio of 9.63 is within the middle range for the Automobiles industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

IP

Containers & Packaging Industry

Max: 35.98
Q3: 27.87
Median: 16.15
Q1: 14.38
Min: 8.20

P/E Ratio data for IP is currently unavailable.

HMC vs. IP: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Automobiles and Containers & Packaging industry benchmarks.

Price-to-Sales Ratio (TTM)

HMC

0.37

Automobiles Industry

Max: 1.52
Q3: 0.84
Median: 0.41
Q1: 0.23
Min: 0.08

HMC’s P/S Ratio of 0.37 aligns with the market consensus for the Automobiles industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

IP

1.14

Containers & Packaging Industry

Max: 2.91
Q3: 1.67
Median: 0.83
Q1: 0.64
Min: 0.30

IP’s P/S Ratio of 1.14 aligns with the market consensus for the Containers & Packaging industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

HMC vs. IP: A comparison of their Price-to-Sales Ratio (TTM) against their respective Automobiles and Containers & Packaging industry benchmarks.

Price-to-Book Ratio (MRQ)

HMC

0.58

Automobiles Industry

Max: 4.25
Q3: 2.00
Median: 0.87
Q1: 0.46
Min: 0.19

HMC’s P/B Ratio of 0.58 is within the conventional range for the Automobiles industry. This shows a balanced market view, where the stock’s price is neither at a significant premium nor a discount to the book value of its peers.

IP

1.33

Containers & Packaging Industry

Max: 5.28
Q3: 3.30
Median: 2.35
Q1: 1.57
Min: 0.89

IP’s P/B Ratio of 1.33 is in the lower quartile for the Containers & Packaging industry. From a value investing perspective, this is favorable, as it suggests the stock is trading at a discount to its net asset value and may offer a greater margin of safety.

HMC vs. IP: A comparison of their Price-to-Book Ratio (MRQ) against their respective Automobiles and Containers & Packaging industry benchmarks.

Valuation at a Glance

Symbol	HMC	IP
Price-to-Earnings Ratio (TTM)	9.63	--
Price-to-Sales Ratio (TTM)	0.37	1.14
Price-to-Book Ratio (MRQ)	0.58	1.33
Price-to-Free Cash Flow Ratio (TTM)	32.11	49.64