Hero MotoCorp vs Honda Motor Which Is More Promising?

Hero MotoCorp and Honda Motor are two major players in the automotive industry, specifically in the sector of motorcycles and scooters. Both companies have a significant market presence in various countries, with a strong focus on innovation and superior engineering. While Hero MotoCorp is an Indian-based company and Honda Motor is a Japanese multinational corporation, they both compete fiercely in the global market. Investors often compare the performance of Hero MotoCorp and Honda Motor stocks to gauge their financial health and potential for growth.

Hero MotoCorp or Honda Motor?

When comparing Hero MotoCorp 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 Hero MotoCorp 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. Hero MotoCorp has a dividend yield of 1.37%, while Honda Motor has a dividend yield of 4.04%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Hero MotoCorp reports a 5-year dividend growth of 1.03% year and a payout ratio of 0.00%. On the other hand, Honda Motor reports a 5-year dividend growth of 0.68% year and a payout ratio of 29.01%.

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 Hero MotoCorp P/E ratio at 23.31 and Honda Motor's P/E ratio at 5.86. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Hero MotoCorp P/B ratio is 5.33 while Honda Motor's P/B ratio is 0.50.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Hero MotoCorp has seen a 5-year revenue growth of 0.13%, while Honda Motor's is 0.16%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Hero MotoCorp's ROE at 22.99% and Honda Motor's ROE at 9.01%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹4717.55 for Hero MotoCorp and $26.89 for Honda Motor. Over the past year, Hero MotoCorp's prices ranged from ₹3102.10 to ₹6246.25, with a yearly change of 101.36%. Honda Motor's prices fluctuated between $26.70 and $37.90, with a yearly change of 41.95%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.