Faraday Future Intelligent Electric (NASDAQ:FFAI – Get Free Report) and Honda Motor (NYSE:HMC – Get Free Report) are both consumer discretionary companies, but which is the better investment? We will contrast the two companies based on the strength of their institutional ownership, dividends, earnings, risk, analyst recommendations, valuation and profitability.
Analyst Ratings
This is a summary of current ratings and target prices for Faraday Future Intelligent Electric and Honda Motor, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Faraday Future Intelligent Electric | 1 | 1 | 1 | 0 | 2.00 |
| Honda Motor | 2 | 1 | 0 | 2 | 2.40 |
Faraday Future Intelligent Electric presently has a consensus price target of $750.00, indicating a potential upside of 23,337.50%. Honda Motor has a consensus price target of $25.00, indicating a potential downside of 25.13%. Given Faraday Future Intelligent Electric’s higher probable upside, analysts clearly believe Faraday Future Intelligent Electric is more favorable than Honda Motor.
Volatility and Risk
Earnings and Valuation
This table compares Faraday Future Intelligent Electric and Honda Motor”s revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Faraday Future Intelligent Electric | $540,000.00 | 12.09 | -$390.70 million | ($223.10) | -0.01 |
| Honda Motor | $144.79 billion | 0.36 | -$2.80 billion | ($0.70) | -47.70 |
Faraday Future Intelligent Electric has higher earnings, but lower revenue than Honda Motor. Honda Motor is trading at a lower price-to-earnings ratio than Faraday Future Intelligent Electric, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Faraday Future Intelligent Electric and Honda Motor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Faraday Future Intelligent Electric | -21,837.97% | -2,531.03% | -100.65% |
| Honda Motor | -0.73% | -1.30% | -0.49% |
Institutional and Insider Ownership
71.7% of Faraday Future Intelligent Electric shares are held by institutional investors. Comparatively, 5.3% of Honda Motor shares are held by institutional investors. 0.3% of Faraday Future Intelligent Electric shares are held by insiders. Comparatively, 0.0% of Honda Motor shares are held by insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a stock will outperform the market over the long term.
Summary
Faraday Future Intelligent Electric beats Honda Motor on 8 of the 15 factors compared between the two stocks.
About Faraday Future Intelligent Electric
Faraday Future Intelligent Electric Inc. engages in the design, development, manufacture, engineering, sale, and distribution of electric vehicles and related products in the United States and internationally. The company was founded in 2014 and is headquartered in Gardena, California.
About Honda Motor
Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, power, and other products in Japan, North America, Europe, Asia, and internationally. It operates through four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Power Product and Other Businesses. The Motorcycle Business segment produces motorcycles, including sports, business, and commuter models; and various off-road vehicles, such as all-terrain vehicles and side-by-sides. The Automobile Business segment offers passenger cars, light trucks, and mini vehicles. The Financial Services Business segment provides various financial services, including retail lending and leasing services to customers, as well as wholesale financing services to dealers. The Power Product and Other Businesses manufactures and sells power products, such as general purpose engines, lawn mowers, generators, water pumps, brush cutters, tillers, outboard marine engines, and snow throwers. This segment also offers HondaJet aircraft. The company also sells spare parts; and provides after-sale services through retail dealers directly, as well as through independent distributors and licensees. Honda Motor Co., Ltd. was founded in 1946 and is headquartered in Tokyo, Japan.
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