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HMC vs. TM: Honda Motor vs. Toyota Motor Stock Comparison

How do Honda Motor (HMC) and Toyota Motor (TM) stack up? This page sets them side by side across company profile, performance and risk, profitability, growth, financial strength, dividends, and valuation, with selected fundamentals also measured against each stock's industry-group peers.

Company Profile

Honda Motor (HMC) and Toyota Motor (TM) are both classified in the Automobile Manufacturers sub-industry within the broader Automobiles industry, placing them in the closest GICS peer bucket.

Both Honda Motor (HMC) and Toyota Motor (TM) trade as ADRs — their core financials are comparable, but keep FX, depositary-program fees, and dividend withholding in view for each.

Company profile comparison for Honda Motor (HMC) and Toyota Motor (TM)
Profile ItemHMCTM
NameHonda Motor Co., Ltd.Toyota Motor Corporation
Country/RegionJapanJapan
GICS SectorConsumer DiscretionaryConsumer Discretionary
GICS Industry GroupAutomobiles & ComponentsAutomobiles & Components
GICS IndustryAutomobilesAutomobiles
GICS Sub-IndustryAutomobile ManufacturersAutomobile Manufacturers
Market Capitalization40.98 billion USD226.29 billion USD
CurrencyUSDUSD
ExchangeNYSENYSE
Listing DateMarch 17, 1980March 17, 1980
Security TypeADRADR

Price Performance

Cumulative Growth

HMC
TM
GSPC
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Honda Motor (HMC) vs. Toyota Motor (TM), with S&P 500 (GSPC) for reference: Growth of a $10,000 investment over the past five years. Adjusted for dividends and splits.

Trailing Returns

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Trailing total returns for Honda Motor (HMC) and Toyota Motor (TM). Returns over one year are annualized.

Calendar-Year Returns

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Calendar-year total returns for Honda Motor (HMC) and Toyota Motor (TM). Each bar is that year's total return, measured year-end to year-end.

Performance Metrics

Price performance metrics for Honda Motor (HMC) and Toyota Motor (TM)
MetricHMCTM
Total Return (1Y)-5.02%-0.71%
Total Return (3Y, Annualized)3.56%6.64%
Total Return (5Y, Annualized)2.41%3.32%

Risk Profile

Drawdown History

HMC
TM
GSPC
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Honda Motor (HMC) vs. Toyota Motor (TM), with S&P 500 (GSPC) for reference: Drawdown from the running peak over the past five years. Each line shows the decline from its prior peak; 0% marks a new high.

Return Distribution

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Distribution of monthly total returns for Honda Motor (HMC) and Toyota Motor (TM). Each bar is the share of months whose return fell in that 5% bucket.

Risk Metrics

Risk profile metrics for Honda Motor (HMC) and Toyota Motor (TM)
MetricHMCTM
Volatility (1Y, Annualized)28.43%26.35%
Beta (5Y)0.440.57
Max Drawdown (5Y)-35.20%-36.80%
Avg. Volume (3M)1.72M491.46K

Risk-Adjusted Performance

Risk-Return Positioning

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HMC and TM are plotted by 1-year volatility (risk) and 1-year return. The dashed Capital Allocation Line runs from the risk-free rate through the shared industry median.

Risk-Adjusted Metrics

Risk-adjusted metrics for Honda Motor (HMC) and Toyota Motor (TM)
MetricHMCTM
Sharpe Ratio (1Y)-0.32-0.18
Sortino Ratio (1Y)-0.46-0.25

Profitability

ROE (TTM)

Honda Motor (HMC) reports a negative ROE of -0.76%; negative ROE can reflect losses or negative shareholders’ equity, so it is harder to read as capital efficiency. Meanwhile Toyota Motor (TM) reports 12.40%, ranking against industry peers normally.

HMC

Automobiles & Components industry group

-0.76%

Max
45.44%
Q3
12.25%
Median
5.16%
HMC
-0.76%
Q1
-16.65%
Min
-57.52%

TM

Automobiles & Components industry group

12.40%

Max
45.44%
TM
12.40%
Q3
12.25%
Median
5.16%
Q1
-16.65%
Min
-57.52%
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Honda Motor (HMC) vs. Toyota Motor (TM): A comparison of their ROE against the Automobiles & Components industry group benchmark.

Net Margin (TTM)

Honda Motor (HMC) reports a negative net margin of -0.75%, usually indicating a net loss over the period. Meanwhile Toyota Motor (TM) reports 8.63%, ranking against industry peers normally.

HMC

Automobiles & Components industry group

-0.75%

Max
10.77%
Q3
4.28%
Median
1.21%
HMC
-0.75%
Q1
-2.45%
Min
-12.11%

TM

Automobiles & Components industry group

8.63%

Max
10.77%
TM
8.63%
Q3
4.28%
Median
1.21%
Q1
-2.45%
Min
-12.11%
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Honda Motor (HMC) vs. Toyota Motor (TM): A comparison of their net margin against the Automobiles & Components industry group benchmark.

Operating Margin (TTM)

Both Honda Motor (HMC) at 8.76% and Toyota Motor (TM) at 7.86% run core operations about as efficiently as their industries’ norm — neither stands out on operating profitability.

HMC

Automobiles & Components industry group

8.76%

Max
23.63%
Q3
8.85%
HMC
8.76%
Median
4.09%
Q1
-1.03%
Min
-14.77%

TM

Automobiles & Components industry group

7.86%

Max
23.63%
Q3
8.85%
TM
7.86%
Median
4.09%
Q1
-1.03%
Min
-14.77%
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Honda Motor (HMC) vs. Toyota Motor (TM): A comparison of their operating margin against the Automobiles & Components industry group benchmark.

Profitability Metrics

Profitability metrics for Honda Motor (HMC) and Toyota Motor (TM)
MetricHMCTM
ROE (TTM)-0.76%12.40%
ROA (TTM)-0.15%2.34%
Net Margin (TTM)-0.75%8.63%
Operating Margin (TTM)8.76%7.86%
Gross Margin (TTM)17.45%16.77%

Growth

Revenue Growth

Both Honda Motor (HMC) at 0.50% and Toyota Motor (TM) at 5.51% land near their industries' usual revenue growth ranges, so top-line momentum looks broadly in line with peers on both sides.

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Honda Motor (HMC) vs. Toyota Motor (TM): A comparison of their Revenue Growth across different time periods.

EPS Growth

Toyota Motor (TM) at -17.89% is around its peer norm for EPS growth, while Honda Motor (HMC) at -159.27% drops into the bottom quartile, signaling weaker earnings momentum.

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Honda Motor (HMC) vs. Toyota Motor (TM): A comparison of their EPS Growth across different time periods.

Growth Metrics

Growth metrics for Honda Motor (HMC) and Toyota Motor (TM)
MetricHMCTM
Revenue Growth (YoY)0.50%5.51%
Revenue Growth (3Y CAGR)8.83%10.91%
EPS Growth (YoY)-159.27%-17.89%
EPS Growth (3Y CAGR)----

Financial Strength

Current Ratio (MRQ)

Both Honda Motor (HMC) at 1.29 and Toyota Motor (TM) at 1.17 carry current ratio within their industries’ typical mid-ranges, suggesting balanced short-term liquidity relative to peers.

HMC

Automobiles & Components industry group

1.29

Max
3.60
Q3
2.52
Median
1.79
HMC
1.29
Q1
1.14
Min
0.06

TM

Automobiles & Components industry group

1.17

Max
3.60
Q3
2.52
Median
1.79
TM
1.17
Q1
1.14
Min
0.06
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Honda Motor (HMC) vs. Toyota Motor (TM): A comparison of their current ratio against the Automobiles & Components industry group benchmark.

Debt / Equity (MRQ)

Both Honda Motor (HMC) at 1.14 and Toyota Motor (TM) at 1.15 fund their balance sheets with roughly industry-typical debt-to-equity mixes.

HMC

Automobiles & Components industry group

1.14

Max
2.02
Q3
1.21
HMC
1.14
Median
0.76
Q1
0.30
Min
0.00

TM

Automobiles & Components industry group

1.15

Max
2.02
Q3
1.21
TM
1.15
Median
0.76
Q1
0.30
Min
0.00
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Honda Motor (HMC) vs. Toyota Motor (TM): A comparison of their debt-to-equity ratio against the Automobiles & Components industry group benchmark.

Financial Strength Metrics

Financial strength metrics for Honda Motor (HMC) and Toyota Motor (TM)
MetricHMCTM
Current Ratio (MRQ)1.291.17
Debt / Equity (MRQ)1.141.15
Net Debt / EBITDA6.925.46

Dividends

Dividend Yield (TTM)

Both Honda Motor (HMC) at 224.36% and Toyota Motor (TM) at 50.34% yield above their industries’ entire benchmark ranges — high enough that dividend safety, not income, becomes the first question.

HMC

Automobiles & Components industry group

224.36%

HMC
224.36%
Max
3.37%
Q3
1.67%
Median
0.00%
Q1
0.00%
Min
0.00%

TM

Automobiles & Components industry group

50.34%

TM
50.34%
Max
3.37%
Q3
1.67%
Median
0.00%
Q1
0.00%
Min
0.00%
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Honda Motor (HMC) vs. Toyota Motor (TM): A comparison of their dividend yield against the Automobiles & Components industry group benchmark.

Dividend Payout Ratio (TTM)

Toyota Motor (TM) at 26.38% pays out a band-typical share of earnings, while Honda Motor (HMC) at 55.35% distributes more than its industry norm — less retained, thinner cover.

HMC

Automobiles & Components industry group

55.35%

Max
72.06%
HMC
55.35%
Q3
32.59%
Median
0.00%
Q1
0.00%
Min
0.00%

TM

Automobiles & Components industry group

26.38%

Max
72.06%
Q3
32.59%
TM
26.38%
Median
0.00%
Q1
0.00%
Min
0.00%
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Honda Motor (HMC) vs. Toyota Motor (TM): A comparison of their payout ratio against the Automobiles & Components industry group benchmark.

Dividend Metrics

Dividend metrics for Honda Motor (HMC) and Toyota Motor (TM)
MetricHMCTM
Dividend Yield (TTM)224.36%50.34%
Dividend Payout Ratio (TTM)55.35%26.38%

Valuation

P/E Ratio (TTM)

An earnings multiple is available for just one side: Toyota Motor (TM) trades at 8.67 times trailing earnings, ranked against its peers, while Honda Motor (HMC) has no P/E ratio this period.

HMC

Automobiles & Components industry group

--

Max
51.16
Q3
34.56
Median
20.89
Q1
13.75
Min
0.00
HMC
--

TM

Automobiles & Components industry group

8.67

Max
51.16
Q3
34.56
Median
20.89
Q1
13.75
TM
8.67
Min
0.00
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Honda Motor (HMC) vs. Toyota Motor (TM): HMC does not report P/E ratio, so it has no value marker; TM is benchmarked against the Automobiles & Components industry group.

P/S Ratio (TTM)

Both Honda Motor (HMC) at 0.00 and Toyota Motor (TM) at 0.00 fetch a relatively low price per dollar of sales, landing in the cheaper P/S ratio quartile of their industries.

HMC

Automobiles & Components industry group

0.00

Max
3.78
Q3
1.88
Median
0.64
Q1
0.35
HMC
0.00
Min
0.00

TM

Automobiles & Components industry group

0.00

Max
3.78
Q3
1.88
Median
0.64
Q1
0.35
TM
0.00
Min
0.00
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Honda Motor (HMC) vs. Toyota Motor (TM): A comparison of their P/S ratio against the Automobiles & Components industry group benchmark.

P/B Ratio (MRQ)

Honda Motor (HMC) at 0.53 sits in the lower P/B ratio quartile relative to book while Toyota Motor (TM) at 15.45 prices above its industry range — a wide valuation gap against assets.

HMC

Automobiles & Components industry group

0.53

Max
4.10
Q3
2.23
Median
1.22
Q1
0.60
HMC
0.53
Min
-1.51

TM

Automobiles & Components industry group

15.45

TM
15.45
Max
4.10
Q3
2.23
Median
1.22
Q1
0.60
Min
-1.51
Loading chart…
Honda Motor (HMC) vs. Toyota Motor (TM): A comparison of their P/B ratio against the Automobiles & Components industry group benchmark.

Valuation Metrics

Valuation metrics for Honda Motor (HMC) and Toyota Motor (TM)
MetricHMCTM
P/E Ratio (TTM)--8.67
P/S Ratio (TTM)0.000.00
P/B Ratio (MRQ)0.5315.45
Free Cash Flow Yield (TTM)653.37%-1,590.83%