On Thursday, General Motors and Honda inked a non-binding memorandum toward building a North American automotive alliance.
The two automakers plan to collaborate on various segments in North America, and to share common vehicle platforms, including both electrified and internal combustion propulsion systems.
According to the companies, discussions on plans will start immediately, with engineering work beginning in early 2021.
The partnership between GM and Honda is a major expansion of existing collaborations between the two companies on autonomous vehicles, connected vehicle technology and fuel cells. Honda is an investor in Cruise, the self-driving unit that GM majority owns.
In comparing GM and HMC, Tickeron finds:
[HMC & GM] are closely correlated.
Brand notoriety: HMC: Not notable vs. GM: Notable
Both companies represent the Motor Vehicles industry
Market capitalization -- HMC: $44B vs. GM: $44.3B
Stock price -- (HMC: $25.08 vs. GM: $29.53)
Current volume relative to the 65-day Moving Average: HMC: 83% vs. GM: 121%
HMC [@Motor Vehicles] is valued at $44B. GM’s [@Motor Vehicles] market capitalization is $44.3B. The market cap for tickers in the [@Motor Vehicles] industry ranges from $169.9M to $416.9B. The average market capitalization across the [@Motor Vehicles] industry is $45.9B.
Long-Term Analysis
It is best to consider a long-term outlook for a ticker by using Fundamental Analysis (FA) ratings. The rating of 1 to 100, where 1 is best and 100 is worst, is divided into thirds. The first third (a green rating of 1-33) indicates that the ticker is undervalued; the second third (a grey number between 34 and 66) means that the ticker is valued fairly; and the last third (red number of 67 to 100) reflects that the ticker is undervalued. We use an FA Score to show how many ratings show the ticker to be undervalued (green) or overvalued (red).
HMC’s FA Score shows that 2 FA rating(s) are green while GM’s FA Score has 3 green FA rating(s).
Short-Term Analysis
It is best to consider a short-term outlook for a ticker by using Technical Analysis (TA) indicators. We use Odds of Success as the percentage of outcomes which confirm successful trade signals in the past.
If the Odds of Success (the likelihood of the continuation of a trend) for each indicator are greater than 50%, then the generated signal is confirmed. A green percentage from 90% to 51% indicates that the ticker is in a bullish trend. A red percentage from 90% - 51% indicates that the ticker is in a bearish trend. All grey percentages are below 50% and are considered not to confirm the trend signal.
HMC’s TA Score shows that 2 TA indicator(s) are bullish while GM’s TA Score has 6 bullish TA indicator(s).
Price Growth
HMC (@Motor Vehicles) experienced а --0.97% price change this week, while GM (@Motor Vehicles) price change was +5.02% for the same time period.
Reported Earning Dates
HMC is expected to report earnings on Feb 26, 2021.
GM is expected to report earnings on Feb 26, 2021.
Industries' Descriptions
@Motor Vehicles (-8.7% weekly)
Automobiles continue to be arguably the most popular form of passenger travel in the U.S., and major automobile makers have revenues and market capitalizations running into multi-billions. In recent years, the industry has been experiencing some path-breaking innovations like electric vehicles and self-driving technology. While there are long-standing companies like General Motors, Ford, and Toyota Motors operating in this space, there are also emerging/rapidly growing players like Tesla – which has had a major role in the growing popularity of the electric vehicle market. With technological advancements taking steam in the auto space, we’ve also witnessed collaborations (or talks of potential partnerships) of carmakers with tech behemoths like Google’s subsidiary, Waymo.
GM vs HMC: Fundamental Ratings
Tickeron ratings are formulated such that a rating of 1 designates the most successful stocks in a given industry, while a rating of 100 points to the least successful stocks for that industry.
GM's Valuation (3) in the Motor Vehicles industry is in the same range as HMC (4). This means that GM’s stock grew similarly to HMC’s over the last 12 months.
GM's Profit vs Risk Rating (20) in the Motor Vehicles industry is significantly better than the same rating for HMC (100). This means that GM’s stock grew significantly faster than HMC’s over the last 12 months.
HMC's SMR Rating (39) in the Motor Vehicles industry is in the same range as GM (53). This means that HMC’s stock grew similarly to GM’s over the last 12 months.
GM's Price Growth Rating (46) in the Motor Vehicles industry is in the same range as HMC (55). This means that GM’s stock grew similarly to HMC’s over the last 12 months.
GM's P/E Growth Rating (5) in the Motor Vehicles industry is in the same range as HMC (10). This means that GM’s stock grew similarly to HMC’s over the last 12 months.
Fundamentals
GM ($44.3B) and HMC ($44B) have the same market capitalization. HMC has higher P/E ratio than GM: -10.032 vs -14.378. HMC YTD gains are higher at: -10.032 vs. GM (-14.378). GM has higher annual earnings (EBITDA): 15.3B vs. HMC (13.9B). GM has more cash in the bank: 32.2B vs. HMC (24.2B). HMC has less debt than GM: 70.8B vs 128B. HMC (121B) and GM (116B) have equivalent revenues.
GM moved above its 50-day moving average on October 07, 2024 date and that indicates a change from a downward trend to an upward trend. In of 29 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on October 09, 2024. You may want to consider a long position or call options on GM as a result. In of 83 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for GM just turned positive on October 09, 2024. Looking at past instances where GM's MACD turned positive, the stock continued to rise in of 45 cases over the following month. The odds of a continued upward trend are .
The 10-day moving average for GM crossed bullishly above the 50-day moving average on October 11, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 12 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where GM advanced for three days, in of 328 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 220 cases where GM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 4 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. GM’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock slightly better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.815) is normal, around the industry mean (6.019). P/E Ratio (6.202) is within average values for comparable stocks, (18.031). Projected Growth (PEG Ratio) (0.846) is also within normal values, averaging (5.553). GM has a moderately low Dividend Yield (0.009) as compared to the industry average of (0.043). P/S Ratio (0.362) is also within normal values, averaging (76.807).
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of cars, trucks and automobile parts
Industry MotorVehicles