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

Updated on August 28, 2025

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

Company Profile

Both HMC and TM are American Depositary Receipts (ADRs). This provides U.S. investors with straightforward access to investing in these foreign-listed companies.

Symbol	HMC	TM
Company Name	Honda Motor Co., Ltd.	Toyota Motor Corporation
Country	Japan	Japan
GICS Sector	Consumer Discretionary	Consumer Discretionary
GICS Industry	Automobiles	Automobiles
Market Capitalization	45.61 billion USD	260.22 billion USD
Exchange	NYSE	NYSE
Listing Date	March 17, 1980	March 17, 1980
Security Type	ADR	ADR

Historical Performance

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

Historical Performance at a Glance

Symbol	HMC	TM
5-Day Price Return	0.96%	1.38%
13-Week Price Return	18.66%	12.33%
26-Week Price Return	17.09%	4.16%
52-Week Price Return	36.87%	14.38%
Month-to-Date Return	7.01%	9.14%
Year-to-Date Return	9.38%	-6.45%
10-Day Avg. Volume	17.41M	27.75M
3-Month Avg. Volume	19.07M	28.99M
3-Month Volatility	33.37%	36.70%
Beta	1.20	1.47

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.

TM

12.02%

Automobiles Industry

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

TM’s Return on Equity of 12.02% is on par with the norm for the Automobiles industry, indicating its profitability relative to shareholder equity is typical for the sector.

HMC vs. TM: A comparison of their Return on Equity (TTM) against the Automobiles industry benchmark.

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.

TM

8.82%

Automobiles Industry

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

A Net Profit Margin of 8.82% places TM in the upper quartile for the Automobiles industry, signifying strong profitability and more effective cost management than most of its peers.

HMC vs. TM: A comparison of their Net Profit Margin (TTM) against the Automobiles industry benchmark.

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.

TM

9.60%

Automobiles Industry

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

An Operating Profit Margin of 9.60% places TM in the upper quartile for the Automobiles industry. This signals a strong ability to translate revenue into operating profit, outperforming most of its competitors in core business efficiency.

HMC vs. TM: A comparison of their Operating Profit Margin (TTM) against the Automobiles industry benchmark.

Profitability at a Glance

Symbol	HMC	TM
Return on Equity (TTM)	6.53%	12.02%
Return on Assets (TTM)	2.72%	4.61%
Net Profit Margin (TTM)	3.85%	8.82%
Operating Profit Margin (TTM)	5.59%	9.60%
Gross Profit Margin (TTM)	21.50%	19.29%

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.

TM

1.27

Automobiles Industry

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

TM’s Current Ratio of 1.27 aligns with the median group of the Automobiles industry, indicating that its short-term liquidity is in line with its sector peers.

HMC vs. TM: A comparison of their Current Ratio (MRQ) against the Automobiles industry benchmark.

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.

TM

1.07

Automobiles Industry

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

TM’s Debt-to-Equity Ratio of 1.07 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.

HMC vs. TM: A comparison of their Debt-to-Equity Ratio (MRQ) against the Automobiles industry benchmark.

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.

TM

Automobiles Industry

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

Interest Coverage Ratio data for TM is currently unavailable.

HMC vs. TM: A comparison of their Interest Coverage Ratio (TTM) against the Automobiles industry benchmark.

Financial Strength at a Glance

Symbol	HMC	TM
Current Ratio (MRQ)	1.36	1.27
Quick Ratio (MRQ)	1.07	1.11
Debt-to-Equity Ratio (MRQ)	0.93	1.07
Interest Coverage Ratio (TTM)	685.89	--

Growth

Revenue Growth

HMC vs. TM: 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. TM: 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.

TM

3.09%

Automobiles Industry

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

TM’s Dividend Yield of 3.09% is consistent with its peers in the Automobiles industry, providing a dividend return that is standard for its sector.

HMC vs. TM: A comparison of their Dividend Yield (TTM) against the Automobiles industry benchmark.

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.

TM

38.83%

Automobiles Industry

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

TM’s Dividend Payout Ratio of 38.83% is within the typical range for the Automobiles industry, suggesting a balanced approach between shareholder payouts and company reinvestment.

HMC vs. TM: A comparison of their Dividend Payout Ratio (TTM) against the Automobiles industry benchmark.

Dividend at a Glance

Symbol	HMC	TM
Dividend Yield (TTM)	4.32%	3.09%
Dividend Payout Ratio (TTM)	49.32%	38.83%

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.

TM

8.93

Automobiles Industry

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

TM’s P/E Ratio of 8.93 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.

HMC vs. TM: A comparison of their Price-to-Earnings Ratio (TTM) against the Automobiles industry benchmark.

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.

TM

0.79

Automobiles Industry

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

TM’s P/S Ratio of 0.79 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.

HMC vs. TM: A comparison of their Price-to-Sales Ratio (TTM) against the Automobiles industry benchmark.

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.

TM

1.09

Automobiles Industry

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

TM’s P/B Ratio of 1.09 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.

HMC vs. TM: A comparison of their Price-to-Book Ratio (MRQ) against the Automobiles industry benchmark.

Valuation at a Glance

Symbol	HMC	TM
Price-to-Earnings Ratio (TTM)	9.63	8.93
Price-to-Sales Ratio (TTM)	0.37	0.79
Price-to-Book Ratio (MRQ)	0.58	1.09
Price-to-Free Cash Flow Ratio (TTM)	32.11	52.42