Seek Returns logo

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

Updated on

Here’s a clear look at HMC and LOW, 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, LOW is a standard domestic listing.

SymbolHMCLOW
Company NameHonda Motor Co., Ltd.Lowe's Companies, Inc.
CountryJapanUnited States
GICS SectorConsumer DiscretionaryConsumer Discretionary
GICS IndustryAutomobilesSpecialty Retail
Market Capitalization44.45 billion USD143.66 billion USD
ExchangeNYSENYSE
Listing DateMarch 17, 1980March 17, 1980
Security TypeADRCommon Stock

Historical Performance

This chart compares the performance of HMC and LOW 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. LOW: Growth of a $10,000 investment over the past one year.

Historical Performance at a Glance

SymbolHMCLOW
5-Day Price Return4.61%7.45%
13-Week Price Return9.34%10.12%
26-Week Price Return19.83%-0.24%
52-Week Price Return36.87%10.93%
Month-to-Date Return4.78%14.65%
Year-to-Date Return7.10%3.86%
10-Day Avg. Volume21.83M3.20M
3-Month Avg. Volume20.70M2.77M
3-Month Volatility34.29%24.89%
Beta1.260.89

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.

LOW

264.53%

Specialty Retail Industry

Max
61.19%
Q3
37.24%
Median
18.81%
Q1
8.92%
Min
-13.03%

LOW’s Return on Equity of 264.53% is exceptionally high, placing it well beyond the typical range for the Specialty Retail industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.

HMC vs. LOW: A comparison of their Return on Equity (TTM) against their respective Automobiles and Specialty Retail 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.

LOW

8.22%

Specialty Retail Industry

Max
21.28%
Q3
10.68%
Median
6.08%
Q1
2.43%
Min
-4.54%

LOW’s Net Profit Margin of 8.22% is aligned with the median group of its peers in the Specialty Retail industry. This indicates its ability to convert revenue into profit is typical for the sector.

HMC vs. LOW: A comparison of their Net Profit Margin (TTM) against their respective Automobiles and Specialty Retail 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.

LOW

12.38%

Specialty Retail Industry

Max
33.35%
Q3
15.84%
Median
9.34%
Q1
3.83%
Min
-8.97%

LOW’s Operating Profit Margin of 12.38% is around the midpoint for the Specialty Retail industry, indicating that its efficiency in managing core business operations is typical for the sector.

HMC vs. LOW: A comparison of their Operating Profit Margin (TTM) against their respective Automobiles and Specialty Retail industry benchmarks.

Profitability at a Glance

SymbolHMCLOW
Return on Equity (TTM)6.53%264.53%
Return on Assets (TTM)2.72%15.37%
Net Profit Margin (TTM)3.85%8.22%
Operating Profit Margin (TTM)5.59%12.38%
Gross Profit Margin (TTM)21.50%33.37%

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.

LOW

1.01

Specialty Retail Industry

Max
2.83
Q3
1.89
Median
1.39
Q1
1.11
Min
0.64

LOW’s Current Ratio of 1.01 falls into the lower quartile for the Specialty Retail industry. This indicates a tighter liquidity situation and a more constrained capacity to handle short-term debt than many of its competitors.

HMC vs. LOW: A comparison of their Current Ratio (MRQ) against their respective Automobiles and Specialty Retail 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.

LOW

52.23

Specialty Retail Industry

Max
3.02
Q3
1.57
Median
0.64
Q1
0.20
Min
0.00

With a Debt-to-Equity Ratio of 52.23, LOW operates with exceptionally high leverage compared to the Specialty Retail industry norm. This suggests an aggressive reliance on debt financing, which can magnify returns but also significantly elevates financial risk.

HMC vs. LOW: A comparison of their Debt-to-Equity Ratio (MRQ) against their respective Automobiles and Specialty Retail 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.

LOW

7.97

Specialty Retail Industry

Max
48.12
Q3
35.95
Median
14.13
Q1
3.61
Min
-36.00

LOW’s Interest Coverage Ratio of 7.97 is positioned comfortably within the norm for the Specialty Retail industry, indicating a standard and healthy capacity to cover its interest payments.

HMC vs. LOW: A comparison of their Interest Coverage Ratio (TTM) against their respective Automobiles and Specialty Retail industry benchmarks.

Financial Strength at a Glance

SymbolHMCLOW
Current Ratio (MRQ)1.361.01
Quick Ratio (MRQ)1.070.19
Debt-to-Equity Ratio (MRQ)0.9352.23
Interest Coverage Ratio (TTM)685.897.97

Growth

Revenue Growth

HMC vs. LOW: 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. LOW: 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

4.38%

Automobiles Industry

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

HMC’s Dividend Yield of 4.38% is consistent with its peers in the Automobiles industry, providing a dividend return that is standard for its sector.

LOW

1.80%

Specialty Retail Industry

Max
6.53%
Q3
2.69%
Median
1.08%
Q1
0.00%
Min
0.00%

LOW’s Dividend Yield of 1.80% is consistent with its peers in the Specialty Retail industry, providing a dividend return that is standard for its sector.

HMC vs. LOW: A comparison of their Dividend Yield (TTM) against their respective Automobiles and Specialty Retail 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.

LOW

37.67%

Specialty Retail Industry

Max
165.81%
Q3
80.94%
Median
31.61%
Q1
0.00%
Min
0.00%

LOW’s Dividend Payout Ratio of 37.67% is within the typical range for the Specialty Retail industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

HMC vs. LOW: A comparison of their Dividend Payout Ratio (TTM) against their respective Automobiles and Specialty Retail industry benchmarks.

Dividend at a Glance

SymbolHMCLOW
Dividend Yield (TTM)4.38%1.80%
Dividend Payout Ratio (TTM)49.32%37.67%

Valuation

Price-to-Earnings Ratio (TTM)

HMC

9.51

Automobiles Industry

Max
27.69
Q3
19.99
Median
9.85
Q1
6.60
Min
4.25

HMC’s P/E Ratio of 9.51 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.

LOW

20.91

Specialty Retail Industry

Max
48.56
Q3
29.15
Median
22.00
Q1
15.46
Min
7.95

LOW’s P/E Ratio of 20.91 is within the middle range for the Specialty Retail industry. This suggests its valuation is in line with the sector average, representing neither a significant premium nor a discount compared to its peers.

HMC vs. LOW: A comparison of their Price-to-Earnings Ratio (TTM) against their respective Automobiles and Specialty Retail 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.

LOW

1.72

Specialty Retail Industry

Max
5.08
Q3
2.69
Median
1.23
Q1
0.48
Min
0.09

LOW’s P/S Ratio of 1.72 aligns with the market consensus for the Specialty Retail industry. This suggests its valuation, based on sales, is seen as standard and is on par with its competitors.

HMC vs. LOW: A comparison of their Price-to-Sales Ratio (TTM) against their respective Automobiles and Specialty Retail 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.

LOW

316.28

Specialty Retail Industry

Max
16.93
Q3
7.98
Median
3.69
Q1
1.79
Min
0.21

At 316.28, LOW’s P/B Ratio is at an extreme premium to the Specialty Retail industry. This signifies that the market’s valuation is heavily reliant on future potential rather than its current net asset value, which can be a high-risk proposition.

HMC vs. LOW: A comparison of their Price-to-Book Ratio (MRQ) against their respective Automobiles and Specialty Retail industry benchmarks.

Valuation at a Glance

SymbolHMCLOW
Price-to-Earnings Ratio (TTM)9.5120.91
Price-to-Sales Ratio (TTM)0.371.72
Price-to-Book Ratio (MRQ)0.58316.28
Price-to-Free Cash Flow Ratio (TTM)31.7121.43