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

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

SymbolHMCSW
Company NameHonda Motor Co., Ltd.Smurfit Westrock Plc
CountryJapanIreland
GICS SectorConsumer DiscretionaryMaterials
GICS IndustryAutomobilesContainers & Packaging
Market Capitalization45.94 billion USD21.90 billion USD
ExchangeNYSENYSE
Listing DateMarch 17, 1980June 17, 2008
Security TypeADRCommon Stock

Historical Performance

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

Historical Performance at a Glance

SymbolHMCSW
5-Day Price Return1.52%-4.05%
13-Week Price Return18.28%-9.57%
26-Week Price Return16.19%-23.24%
52-Week Price Return36.87%-3.54%
Month-to-Date Return6.37%-5.48%
Year-to-Date Return8.73%-22.11%
10-Day Avg. Volume19.10M4.11M
3-Month Avg. Volume19.56M3.61M
3-Month Volatility32.95%31.62%
Beta1.211.10

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.

SW

2.94%

Containers & Packaging Industry

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

A Return on Equity of 2.94% places SW below the typical range for the Containers & Packaging industry. This suggests challenges in efficiently using shareholder capital to generate profit, which could point to operational issues or a conservative capital structure.

HMC vs. SW: 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.

SW

1.18%

Containers & Packaging Industry

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

Falling into the lower quartile for the Containers & Packaging industry, SW’s Net Profit Margin of 1.18% indicates weaker profitability. This means the company retains a smaller portion of each dollar in sales as profit compared to its competitors.

HMC vs. SW: 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.

SW

4.20%

Containers & Packaging Industry

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

SW’s Operating Profit Margin of 4.20% is in the lower quartile for the Containers & Packaging industry. This indicates weaker profitability from core operations, which may stem from inefficiencies or competitive pressures on pricing.

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

Profitability at a Glance

SymbolHMCSW
Return on Equity (TTM)6.53%2.94%
Return on Assets (TTM)2.72%1.17%
Net Profit Margin (TTM)3.85%1.18%
Operating Profit Margin (TTM)5.59%4.20%
Gross Profit Margin (TTM)21.50%19.46%

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.

SW

1.45

Containers & Packaging Industry

Max
2.13
Q3
1.57
Median
1.27
Q1
1.13
Min
0.58

SW’s Current Ratio of 1.45 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. SW: 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.

SW

0.79

Containers & Packaging Industry

Max
4.50
Q3
2.23
Median
1.22
Q1
0.54
Min
0.23

SW’s Debt-to-Equity Ratio of 0.79 is typical for the Containers & Packaging industry, indicating its use of leverage is in line with the sector norm. This suggests a balanced approach to its capital structure.

HMC vs. SW: 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.

SW

2.41

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, SW’s Interest Coverage Ratio of 2.41 indicates a tighter cushion for servicing debt, suggesting less financial flexibility than many of its competitors.

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

Financial Strength at a Glance

SymbolHMCSW
Current Ratio (MRQ)1.361.45
Quick Ratio (MRQ)1.070.95
Debt-to-Equity Ratio (MRQ)0.930.79
Interest Coverage Ratio (TTM)685.892.41

Growth

Revenue Growth

HMC vs. SW: 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. SW: 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.

SW

3.50%

Containers & Packaging Industry

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

SW’s Dividend Yield of 3.50% is consistent with its peers in the Containers & Packaging industry, providing a dividend return that is standard for its sector.

HMC vs. SW: 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.

SW

85.87%

Containers & Packaging Industry

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

SW’s Dividend Payout Ratio of 85.87% is within the typical range for the Containers & Packaging industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

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

Dividend at a Glance

SymbolHMCSW
Dividend Yield (TTM)4.32%3.50%
Dividend Payout Ratio (TTM)49.32%85.87%

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.

SW

41.59

Containers & Packaging Industry

Max
35.98
Q3
27.87
Median
16.15
Q1
14.38
Min
8.20

At 41.59, SW’s P/E Ratio is exceptionally high, exceeding the typical maximum for the Containers & Packaging industry. This suggests the stock may be significantly overvalued compared to its peers and implies high market expectations that could be difficult to meet.

HMC vs. SW: 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.

SW

0.49

Containers & Packaging Industry

Max
2.91
Q3
1.67
Median
0.83
Q1
0.64
Min
0.30

In the lower quartile for the Containers & Packaging industry, SW’s P/S Ratio of 0.49 indicates its revenue is valued more conservatively than most of its peers. This could present a compelling opportunity if the market has overlooked its sales-generating capabilities.

HMC vs. SW: 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.

SW

1.23

Containers & Packaging Industry

Max
5.28
Q3
3.30
Median
2.35
Q1
1.57
Min
0.89

SW’s P/B Ratio of 1.23 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. SW: A comparison of their Price-to-Book Ratio (MRQ) against their respective Automobiles and Containers & Packaging industry benchmarks.

Valuation at a Glance

SymbolHMCSW
Price-to-Earnings Ratio (TTM)9.6341.59
Price-to-Sales Ratio (TTM)0.370.49
Price-to-Book Ratio (MRQ)0.581.23
Price-to-Free Cash Flow Ratio (TTM)32.1142.07