HMC vs. RACE: A Head-to-Head Stock Comparison
Updated onHere’s a clear look at HMC and RACE, 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, RACE is a standard domestic listing.
| Symbol | HMC | RACE |
|---|---|---|
| Company Name | Honda Motor Co., Ltd. | Ferrari N.V. |
| Country | Japan | Italy |
| GICS Sector | Consumer Discretionary | Consumer Discretionary |
| GICS Industry | Automobiles | Automobiles |
| Market Capitalization | 45.94 billion USD | 83.48 billion USD |
| Exchange | NYSE | NYSE |
| Listing Date | March 17, 1980 | October 21, 2015 |
| Security Type | ADR | Common Stock |
Historical Performance
This chart compares the performance of HMC and RACE 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.
Historical Performance at a Glance
| Symbol | HMC | RACE |
|---|---|---|
| 5-Day Price Return | 1.52% | 6.15% |
| 13-Week Price Return | 18.28% | -8.16% |
| 26-Week Price Return | 16.19% | -12.25% |
| 52-Week Price Return | 36.87% | -3.29% |
| Month-to-Date Return | 6.37% | 5.22% |
| Year-to-Date Return | 8.73% | -1.70% |
| 10-Day Avg. Volume | 19.10M | 0.34M |
| 3-Month Avg. Volume | 19.56M | 0.32M |
| 3-Month Volatility | 32.95% | 31.96% |
| Beta | 1.21 | 1.01 |
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.
RACE
45.61%
Automobiles Industry
- Max
- 25.70%
- Q3
- 12.88%
- Median
- 6.92%
- Q1
- 0.71%
- Min
- -15.89%
RACE’s Return on Equity of 45.61% is exceptionally high, placing it well beyond the typical range for the Automobiles industry. This demonstrates a superior ability to generate profit from shareholder investments, though it could also be inflated by high financial leverage.
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.
RACE
22.91%
Automobiles Industry
- Max
- 9.92%
- Q3
- 5.78%
- Median
- 3.23%
- Q1
- 0.11%
- Min
- -5.31%
RACE’s Net Profit Margin of 22.91% is exceptionally high, placing it well beyond the typical range for the Automobiles industry. This demonstrates outstanding operational efficiency and a strong competitive advantage in converting revenue into profit.
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.
RACE
29.16%
Automobiles Industry
- Max
- 13.07%
- Q3
- 7.22%
- Median
- 5.29%
- Q1
- 0.43%
- Min
- -4.46%
RACE’s Operating Profit Margin of 29.16% is exceptionally high, placing it well above the typical range for the Automobiles industry. This demonstrates outstanding efficiency in managing its core operations, which can be a result of strong pricing power or superior cost control.
Profitability at a Glance
| Symbol | HMC | RACE |
|---|---|---|
| Return on Equity (TTM) | 6.53% | 45.61% |
| Return on Assets (TTM) | 2.72% | 16.76% |
| Net Profit Margin (TTM) | 3.85% | 22.91% |
| Operating Profit Margin (TTM) | 5.59% | 29.16% |
| Gross Profit Margin (TTM) | 21.50% | 51.20% |
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.
RACE
2.08
Automobiles Industry
- Max
- 2.19
- Q3
- 1.54
- Median
- 1.26
- Q1
- 1.09
- Min
- 0.48
RACE’s Current Ratio of 2.08 is in the upper quartile for the Automobiles industry. This signifies a strong liquidity position, suggesting the company is well-equipped to cover its immediate liabilities compared to its peers.
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.
RACE
0.89
Automobiles Industry
- Max
- 2.34
- Q3
- 1.13
- Median
- 0.58
- Q1
- 0.28
- Min
- 0.06
RACE’s Debt-to-Equity Ratio of 0.89 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.
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.
RACE
181.49
Automobiles Industry
- Max
- 77.87
- Q3
- 42.86
- Median
- 13.88
- Q1
- 2.13
- Min
- -49.07
With an Interest Coverage Ratio of 181.49, RACE 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.
Financial Strength at a Glance
| Symbol | HMC | RACE |
|---|---|---|
| Current Ratio (MRQ) | 1.36 | 2.08 |
| Quick Ratio (MRQ) | 1.07 | 1.61 |
| Debt-to-Equity Ratio (MRQ) | 0.93 | 0.89 |
| Interest Coverage Ratio (TTM) | 685.89 | 181.49 |
Growth
Revenue Growth
EPS Growth
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.
RACE
0.67%
Automobiles Industry
- Max
- 10.71%
- Q3
- 5.39%
- Median
- 3.14%
- Q1
- 0.00%
- Min
- 0.00%
RACE’s Dividend Yield of 0.67% is consistent with its peers in the Automobiles industry, providing a dividend return that is standard for its sector.
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.
RACE
44.33%
Automobiles Industry
- Max
- 114.43%
- Q3
- 59.30%
- Median
- 37.15%
- Q1
- 16.40%
- Min
- 0.00%
RACE’s Dividend Payout Ratio of 44.33% is within the typical range for the Automobiles industry, suggesting a balanced approach between shareholder payouts and company reinvestment.
Dividend at a Glance
| Symbol | HMC | RACE |
|---|---|---|
| Dividend Yield (TTM) | 4.32% | 0.67% |
| Dividend Payout Ratio (TTM) | 49.32% | 44.33% |
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.
RACE
48.99
Automobiles Industry
- Max
- 27.69
- Q3
- 19.99
- Median
- 9.85
- Q1
- 6.60
- Min
- 4.25
At 48.99, RACE’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Automobiles industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.
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.
RACE
11.23
Automobiles Industry
- Max
- 1.52
- Q3
- 0.84
- Median
- 0.41
- Q1
- 0.23
- Min
- 0.08
With a P/S Ratio of 11.23, RACE trades at a valuation that eclipses even the highest in the Automobiles industry. This implies the market has priced in exceptionally optimistic scenarios for future revenue growth, posing considerable valuation risk.
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.
RACE
22.78
Automobiles Industry
- Max
- 4.25
- Q3
- 2.00
- Median
- 0.87
- Q1
- 0.46
- Min
- 0.19
At 22.78, RACE’s P/B Ratio is at an extreme premium to the Automobiles 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.
Valuation at a Glance
| Symbol | HMC | RACE |
|---|---|---|
| Price-to-Earnings Ratio (TTM) | 9.63 | 48.99 |
| Price-to-Sales Ratio (TTM) | 0.37 | 11.23 |
| Price-to-Book Ratio (MRQ) | 0.58 | 22.78 |
| Price-to-Free Cash Flow Ratio (TTM) | 32.11 | 57.47 |