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Honda VS. Toyota: Which Stock Is The Better Buy?

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  • The automotive industry has taken a hit from tariffs.
  • Two of America’s most loved cars are still loved by investors.
  • Which is the better investment?

According to OICA.com, U.S. vehicle production was down last year at a painful -8.13% or 11,189,985 as compared to 2016 at 12,198,137. The trade wars are continuing to affect the automotive industry, causing fear and uncertainty with investors. However, if your love for the automotive industry still remains, let’s compare the two companies to see if either one belongs on your stock watchlist.

Toyota Motor Corp.

TM (Toyota Motor Corporation,$125.45) is a global Japanese automotive manufacturer that was founded in 1937 that generated a total revenue of $264.7 billion in this year of 2018.

Recent Press Release:

The current CEO, Mike Groff, will retire by the end of the month (August 31st, 2018) and will serve as Executive Advisor to Toyota’s financial services until mid-November 2018.

•Dividend cash payout was $1.94 effective date 3/28/18.

•52-week low and high: $111.29 (L) and $140.99 (H).

•Five-year high at $143.56 (04/16/2015) as to the five-year low of $97.80 (04/04/2016).

(Screenshot from Yahoo!Finance, 5-year chart review)

Read: Alibaba Group Holdings LTD: The International Powerhouse

Honda Motor Co. LTD

HMC (Honda Motor Company LTD,$30.24) is a global conglomerate (multi-industry) corporation that consists of automobile and luxury vehicles to jet engines and robotics. Company founded in 1948, HMC’s power products and other business divisions reported revenues of $3.2 billion in FY (fiscal year) of 2018 whereas HMC’s automotive sales reported $140 billion in the same period.

Recent Press Release:

HMC’s HondaJet and engines reported a loss of -$380 million in this FY of 2018. Yet, HMC’s Accord vehicle has achieved outstanding awards of excellence this year:

  • “10 Best Family Cars of 2018” by Parents Magazine and Edmunds.com
  • “Best New Cars” by Good Housekeeping
  • “Drivers Choice Award” and “Car of the Year”

•Cash payout amount for dividend was $0.19 last effective date 03/28/2018.

•52 week low and high: $27.36 (L) and $37.29 (H).

•Five-year high was $42.78 on 11/18/2013 and a five-year low of $24.03 on 07/05/2016

(Screenshot from Yahoo!Finance, 5-year chart review)

Many shareholders believe that HMC is “undervalued” as to their stock prices have remained stagnant from their history on the market. Regardless, both corporations are excellent with their business strategies and unit production.

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Information Attained:

NASDAQ.com, Bizjournal.com,Wikipedia.com,Toyota.com,SEC.gov

Categories: Blogs

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