Honda Motor (NYSE: HMC) and Commercial Vehicle Group (NASDAQ:CVGI) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their analyst recommendations, dividends, valuation, earnings, profitability, risk and institutional ownership.
Volatility & Risk
Honda Motor has a beta of 1.01, indicating that its stock price is 1% more volatile than the S&P 500. Comparatively, Commercial Vehicle Group has a beta of 1.31, indicating that its stock price is 31% more volatile than the S&P 500.
Honda Motor pays an annual dividend of $0.75 per share and has a dividend yield of 2.3%. Commercial Vehicle Group does not pay a dividend. Honda Motor pays out 14.5% of its earnings in the form of a dividend. Honda Motor has increased its dividend for 4 consecutive years.
This is a summary of recent recommendations for Honda Motor and Commercial Vehicle Group, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
|Commercial Vehicle Group||0||0||1||0||3.00|
Honda Motor presently has a consensus target price of $43.00, suggesting a potential upside of 30.66%. Commercial Vehicle Group has a consensus target price of $8.50, suggesting a potential upside of 5.07%. Given Honda Motor’s higher probable upside, equities research analysts plainly believe Honda Motor is more favorable than Commercial Vehicle Group.
Valuation & Earnings
This table compares Honda Motor and Commercial Vehicle Group’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Honda Motor||$124.78 billion||0.48||$5.73 billion||$5.19||6.34|
|Commercial Vehicle Group||$755.23 million||0.33||-$1.70 million||($0.06)||-134.83|
Honda Motor has higher revenue and earnings than Commercial Vehicle Group. Commercial Vehicle Group is trading at a lower price-to-earnings ratio than Honda Motor, indicating that it is currently the more affordable of the two stocks.
This table compares Honda Motor and Commercial Vehicle Group’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
|Commercial Vehicle Group||-0.23%||18.39%||3.35%|
Institutional & Insider Ownership
2.1% of Honda Motor shares are owned by institutional investors. Comparatively, 76.3% of Commercial Vehicle Group shares are owned by institutional investors. 3.0% of Commercial Vehicle Group shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.
Honda Motor beats Commercial Vehicle Group on 11 of the 17 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.
Commercial Vehicle Group Company Profile
Commercial Vehicle Group, Inc. is a supplier of a range of cab-related products and systems. The Company operates through two segments: the Global Truck and Bus Segment (GTB Segment) and the Global Construction and Agriculture Segment (GCA Segment). The GTB Segment manufactures and sells products, which include Seats, Trim, sleeper boxes, cab structures, structural components and body panels, and mirrors and wiper systems. The GCA Segment manufactures and sells the products, which include Electronic wire harness assemblies and Seats, Wiper systems, Office seating, and Aftermarket seats and components. It supplies products for the commercial vehicle market, including the medium-and heavy-duty truck market, the medium-and heavy-construction vehicle market, and the military, bus, agriculture, mining, industrial equipment and off-road recreational markets. It has manufacturing operations in the United States, Mexico, the United Kingdom, Czech Republic, Ukraine, China, India and Australia.
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