General Motors vs Honda Motor Which Is More Attractive?

General Motors and Honda Motor are two of the biggest players in the automotive industry, each boasting a long and successful history. Both companies have a strong global presence and are known for producing high-quality vehicles that are popular among consumers. However, their stock performance can vary based on a variety of factors including market conditions, economic trends, and company-specific developments. In this comparison, we will analyze the historical performance and potential future outlook of General Motors vs Honda Motor stocks.

General Motors or Honda Motor?

When comparing General Motors and Honda Motor, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between General Motors and Honda Motor.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. General Motors has a dividend yield of 0.9%, while Honda Motor has a dividend yield of 4.19%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. General Motors reports a 5-year dividend growth of -25.03% year and a payout ratio of 5.69%. On the other hand, Honda Motor reports a 5-year dividend growth of 0.68% year and a payout ratio of 33.52%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with General Motors P/E ratio at 5.38 and Honda Motor's P/E ratio at 6.16. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. General Motors P/B ratio is 0.84 while Honda Motor's P/B ratio is 0.49.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, General Motors has seen a 5-year revenue growth of 0.21%, while Honda Motor's is 0.38%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with General Motors's ROE at 16.37% and Honda Motor's ROE at 7.80%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $53.01 for General Motors and $25.81 for Honda Motor. Over the past year, General Motors's prices ranged from $32.83 to $61.24, with a yearly change of 86.54%. Honda Motor's prices fluctuated between $25.56 and $37.90, with a yearly change of 48.28%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.