General Motors (GM, $29.65)and Honda (HMC, $25.13) to collaborate in North America

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).

• HMC’s FA Score: 2 green, 3 red.
• GM’s FA Score: 3 green, 2 red.

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).

• HMC’s TA Score: 2 bullish, 5 bearish.
• GM’s TA Score: 6 bullish, 3 bearish.

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.

Contributor

Sergey Savastiouk|Expert

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.

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