HONDA MOTOR CO., LTD. vs TOYOTA MOTOR CORP/, two Auto Manufacturers stocks. A side-by-side on valuation, growth, margins, returns, and what each price is betting.
Both Japanese giants run debt-free (ex-finance) and trade cheap, Honda at 7.5 times earnings and Toyota at 7.17, near-identical multiples for the two pillars of Japanese auto. Toyota earns the better economics, a 9.97% net margin and 13% return on equity against Honda's 4.16% and 7.15%, its hybrid dominance and scale beating Honda's broader but thinner lineup. Toyota yields 10.8% in free cash against Honda's slightly negative figure this year. Both are priced as cheap, mature manufacturers. The pair is the Japanese auto duopoly priced almost identically; Toyota's margins and returns are clearly superior, Honda's multiple no cheaper, which makes Toyota the stronger value on nearly matched prices, the market underpricing the quality gap.
Comparison updated 2026-07-11.
| Metric | HMC | TM |
|---|---|---|
| Price | $26.84 | $171.77 |
| Market cap | $41.8B | $227.6B |
| Sector | Auto Manufacturers | Auto Manufacturers |
| Stage | Mature | Growth |
| P/E | 7.5 | 7.2 |
| P/B | 0.50 | 0.93 |
| P/S | 0.29 | 0.71 |
| EV/EBITDA | 0.6 | 3.6 |
| Revenue growth | +13.4% | +15.4% |
| Operating margin | 5.6% | 10.0% |
| Net margin | 4.2% | 10.0% |
| Return on equity | 7.2% | 13.0% |
| Return on assets | 2.9% | 5.1% |
| Return on invested capital | 6.6% | 9.7% |
| FCF yield | -3.5% | 10.8% |
| Dividend yield | 5.9% | 8.5% |
| Debt / equity | 0.00 | 0.00 |
| Current ratio | 1.36 | 1.26 |
| Altman Z (solvency) | 1.67 | 1.68 |
| Piotroski F (quality) | 6 / 9 | 6 / 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.