Honda Motor vs Yamaha Which Performs Better?

Honda Motor Co., Ltd. and Yamaha Motor Co., Ltd. are both well-known companies in the automotive industry, particularly in their expertise in motorcycles and other motor vehicles. The stocks of these two companies have shown strong performances over the years, with both experiencing periods of growth and stability in the market. Investors interested in the automotive sector often consider Honda and Yamaha stocks as potential investment opportunities due to their strong brand recognition, global presence, and innovative technologies.

Honda Motor or Yamaha?

When comparing Honda Motor and Yamaha, 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 Honda Motor and Yamaha.

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. Honda Motor has a dividend yield of 4.19%, while Yamaha has a dividend yield of 3.23%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Honda Motor reports a 5-year dividend growth of 0.68% year and a payout ratio of 33.52%. On the other hand, Yamaha reports a 5-year dividend growth of -1.36% year and a payout ratio of 38.03%.

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 Honda Motor P/E ratio at 6.16 and Yamaha's P/E ratio at 16.35. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Honda Motor P/B ratio is 0.49 while Yamaha's P/B ratio is 1.01.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Honda Motor has seen a 5-year revenue growth of 0.38%, while Yamaha's is 0.13%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Honda Motor's ROE at 7.80% and Yamaha's ROE at 6.49%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $25.81 for Honda Motor and $7.14 for Yamaha. Over the past year, Honda Motor's prices ranged from $25.56 to $37.90, with a yearly change of 48.28%. Yamaha's prices fluctuated between $6.02 and $9.03, with a yearly change of 50.06%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.