Honda Motor (NYSE: HMC) and Adient PLC (NASDAQ:ADNT) are both mid-cap auto/tires/trucks companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, profitability, dividends, risk, institutional ownership, earnings and analyst recommendations.
Honda Motor pays an annual dividend of $0.54 per share and has a dividend yield of 1.8%. Adient PLC does not pay a dividend. Honda Motor pays out 16.5% of its earnings in the form of a dividend. Adient PLC has increased its dividend for 3 consecutive years.
Insider and Institutional Ownership
2.6% of Honda Motor shares are owned by institutional investors. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a company will outperform the market over the long term.
Earnings & Valuation
This table compares Honda Motor and Adient PLC’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||EBITDA||Earnings Per Share||Price/Earnings Ratio|
|Honda Motor||$130.93 billion||0.40||$12.30 billion||$3.28||8.91|
|Adient PLC||$16.21 billion||0.44||$976.00 million||N/A||N/A|
Honda Motor has higher revenue and earnings than Adient PLC.
This is a breakdown of current ratings and target prices for Honda Motor and Adient PLC, as reported by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Honda Motor currently has a consensus price target of $35.00, suggesting a potential upside of 19.70%. Adient PLC has a consensus price target of $62.75, suggesting a potential downside of 17.86%. Given Honda Motor’s stronger consensus rating and higher probable upside, research analysts clearly believe Honda Motor is more favorable than Adient PLC.
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|
Adient PLC beats Honda Motor on 7 of the 13 factors compared between the two stocks.
About Honda Motor
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.
About Adient PLC
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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