HONDA MOTOR CO., LTD. vs PACCAR Inc, two Auto Manufacturers stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
The margin gap favors the truck specialist: PACCAR nets 8.91% of revenue on heavy trucks against Honda's 4.16% on cars and motorcycles, disciplined niche economics against broad-line manufacturing. PACCAR earns 12.5% on equity to Honda's 7.15%, both debt-free (ex-finance). PACCAR trades dearer, 25.7 times earnings against Honda's 7.5, the market paying a large premium for the truck maker's steadier profitability over the Japanese giant's cheaper, lower-margin breadth. PACCAR yields 5.89% in free cash; Honda's is slightly negative this year. The pair prices a focused heavy-truck maker against a diversified Japanese automaker; PACCAR earns twice the margin and return, Honda offers scale and a low multiple, and the market ranks profitability over cheapness here.
Comparison updated 2026-07-11.
| Metric | HMC | PCAR |
|---|---|---|
| Price | $26.84 | $120.75 |
| Market cap | $41.8B | $63.7B |
| Sector | Auto Manufacturers | Auto Manufacturers |
| Stage | Mature | Mature |
| Implied growth (priced in) | — | +21.2% |
| P/E | 7.5 | 25.7 |
| P/B | 0.50 | 3.22 |
| P/S | 0.29 | 2.29 |
| EV/EBITDA | 0.6 | 77.4 |
| Revenue growth | +13.4% | -14.0% |
| Operating margin | 5.6% | — |
| Net margin | 4.2% | 8.9% |
| Return on equity | 7.2% | 12.5% |
| Return on assets | 2.9% | 5.7% |
| Return on invested capital | 6.6% | — |
| FCF yield | -3.5% | 5.9% |
| Dividend yield | 5.9% | 2.3% |
| Debt / equity | 0.00 | 0.00 |
| Current ratio | 1.36 | — |
| Altman Z (solvency) | 1.67 | 7.25 |
| Piotroski F (quality) | 6 / 9 | 8 / 9 |
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The stronger value is highlighted per metric where one is strictly better on that single number; it is not an overall verdict on either company. For informational and research purposes only. Not investment advice. Not a recommendation to buy, sell, or hold any security. boothcheck is not a registered investment adviser. Past performance does not guarantee future results.