Honda Motor (NYSE: HMC) and Adient PLC (NASDAQ:ADNT) are both mid-cap auto/tires/trucks companies, but which is the better business? We will compare the two companies based on the strength of their valuation, risk, earnings, dividends, institutional ownership, profitabiliy and analyst recommendations.
This is a summary of current ratings and price targets for Honda Motor and Adient PLC, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Honda Motor presently has a consensus price target of $33.18, indicating a potential upside of 18.25%. Adient PLC has a consensus price target of $62.75, indicating a potential downside of 4.18%. Given Honda Motor’s stronger consensus rating and higher probable upside, analysts clearly believe Honda Motor is more favorable than Adient PLC.
Honda Motor pays an annual dividend of $0.75 per share and has a dividend yield of 2.7%. Adient PLC does not pay a dividend. Honda Motor pays out 22.9% of its earnings in the form of a dividend. Honda Motor has raised its dividend for 3 consecutive years.
This table compares Honda Motor and Adient PLC’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Institutional & Insider Ownership
2.6% of Honda Motor shares are owned by institutional investors. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Valuation & Earnings
This table compares Honda Motor and Adient PLC’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Honda Motor||$127.23 billion||0.40||$11.96 billion||$3.28||8.55|
|Adient PLC||$16.21 billion||0.38||$976.00 million||N/A||N/A|
Honda Motor has higher revenue and earnings than Adient PLC.
Honda Motor beats Adient PLC on 8 of the 13 factors compared between the two stocks.
Honda Motor Company Profile
Honda Motor Co., Ltd. (Honda) develops, manufactures and markets motorcycles, automobiles and power products across the world. The Company’s segments include Motorcycle Business, Automobile business, Financial services business, and Power product and other businesses. The Company produces a range of motorcycles, with engine displacement ranging from the 50 cubic centimeters class to the 1,800 cubic centimeters class. Its automobiles use gasoline engines of three, four or six cylinder, diesel engines, gasoline-electric hybrid systems and gasoline-electric plug-in hybrid systems. Honda offers a range of financial services to its customers and dealers through finance subsidiaries in countries, including Japan, the United States, Canada, the United Kingdom, Germany, Brazil and Thailand. Honda manufactures a range of power products, including general-purpose engines, generators, water pumps, lawn mowers, riding mowers, grass cutters, brush cutters, tillers and snow blowers.
Adient PLC Company Profile
Adient plc, formerly Adient Limited, is an automotive seating supplier. The Company designs, manufactures and markets a range of seating systems and components for passenger cars, commercial vehicles, and light trucks, including vans, pick-up trucks, and sport/crossover utility vehicles. The Company operates through two segments: Seating and Interiors. The Seating segment produces automotive seat metal structures, and mechanisms, foam, trim, fabric and complete seat systems. The Interiors segment produces instrument panels, floor consoles, door panels, overhead consoles, cockpit systems, decorative trim and other products. The Company also supplies various seating systems to the international motorsports industry through its RECARO brand of products. It operates approximately 230 manufacturing or assembly facilities, with operations in over 30 countries. Its technologies focus on offering automotive seating solutions in a range of areas, including frames, armrests and fabrics.
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