Workhorse Group (NASDAQ:WKHS) and Honda Motor (NYSE:HMC) are both auto/tires/trucks companies, but which is the superior investment? We will compare the two companies based on the strength of their dividends, institutional ownership, valuation, analyst recommendations, risk, profitability and earnings.
Valuation and Earnings
This table compares Workhorse Group and Honda Motor’s revenue, earnings per share (EPS) and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Workhorse Group||$760,000.00||50.98||-$36.50 million||($0.77)||-0.82|
|Honda Motor||$138.71 billion||0.36||$9.53 billion||$3.62||7.72|
Honda Motor has higher revenue and earnings than Workhorse Group. Workhorse 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 is a breakdown of recent recommendations and price targets for Workhorse Group and Honda Motor, as provided by MarketBeat.com.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Workhorse Group presently has a consensus price target of $4.00, suggesting a potential upside of 534.92%. Given Workhorse Group’s stronger consensus rating and higher possible upside, equities research analysts clearly believe Workhorse Group is more favorable than Honda Motor.
Volatility & Risk
Workhorse Group has a beta of 1.32, indicating that its stock price is 32% more volatile than the S&P 500. Comparatively, Honda Motor has a beta of 0.94, indicating that its stock price is 6% less volatile than the S&P 500.
Honda Motor pays an annual dividend of $0.80 per share and has a dividend yield of 2.9%. Workhorse Group does not pay a dividend. Honda Motor pays out 22.1% of its earnings in the form of a dividend. Honda Motor has increased its dividend for 5 consecutive years.
This table compares Workhorse Group and Honda Motor’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Insider and Institutional Ownership
11.9% of Workhorse Group shares are held by institutional investors. Comparatively, 2.1% of Honda Motor shares are held by institutional investors. 2.8% of Workhorse Group shares are held by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company is poised for long-term growth.
Honda Motor beats Workhorse Group on 9 of the 17 factors compared between the two stocks.
Workhorse Group Company Profile
Workhorse Group Inc. designs, manufactures, builds, sells, and leases battery-electric vehicles and aircraft in the United States. It operates through two divisions, Automotive and Aviation. The company also develops cloud-based and real-time telematics performance monitoring systems that enable fleet operators to optimize energy and route efficiency. Its products include electric cargo vans, and medium and light-duty pickup trucks, as well as HorseFly delivery drones and truck systems. The company was formerly known as AMP Holding Inc. and changed its name to Workhorse Group Inc. in April 2015. Workhorse Group Inc. was founded in 2007 and is headquartered in Loveland, Ohio.
Honda Motor Company Profile
Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, power products, and other products worldwide. The company operates through four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Power Product and Other Businesses. The Motorcycle Business segment produces sports models, including trial and moto-cross racing vehicles; business and commuter models; all-terrain vehicles; and side-by-side models. The Automobile Business segment offers passenger cars, light trucks, and mini vehicles, as well as vehicles powered with alternative fuel, such as ethanol, battery electric, and fuel cell vehicles. The Financial Services Business segment provides various financial services, including retail lending and leasing services to customers, as well as other financial services comprising wholesale financing to dealers. The Power Product and Other Businesses segment manufactures and sells various power products consisting of general-purpose engines, generators, water pumps, lawn mowers, riding mowers, robotic mowers, brush cutters, tillers, snow blowers, outboard marine engines, and walking assist devices, as well as portable battery inverter power sources. 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 overseas operations, independent distributors, and licensees. Honda Motor Co., Ltd. sells its products through independent retail dealers. Honda Motor Co., Ltd. was founded in 1946 and is headquartered in Tokyo, Japan.
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