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HMC vs TM
Which Stock Would AI Choose? Honda Motor Co., Ltd. (HMC) vs. Toyota Motor Corporation (TM) Stock Comparison
Key Takeaways
- HMC and TM represent leading Japanese automakers with global exposure to passenger vehicles, motorcycles, and emerging electrification trends.
- Both stocks posted double-digit gains over the recent one-month period amid broader market activity, though year-to-date returns remain modest for HMC and negative for TM.
- TM maintains a significantly larger market capitalization and has reported stronger U.S. sales growth, particularly in electrified models, compared with HMC.
- Upcoming earnings releases in early August 2026 for both companies serve as near-term catalysts that could influence sentiment.
- Sector exposure centers on automotive manufacturing, with shared risks from supply chains, regulatory shifts toward electric vehicles, and currency fluctuations.
- Relative performance highlights trade-offs in scale, with TM offering broader diversification and HMC presenting a more compact valuation profile.
Introduction
Investors and traders often compare HMC and TM due to their positions as major global automakers headquartered in Japan. This analysis examines their business models, recent stock behavior, and market positioning to assist those evaluating relative performance within the automotive sector. The comparison is particularly relevant for individuals seeking exposure to traditional vehicle manufacturing alongside the transition to electrified powertrains, as well as those monitoring Japanese equities or multinational consumer discretionary stocks.
HMC Overview and Recent Performance
Honda Motor Co., Ltd. produces automobiles, motorcycles, and power equipment, with operations spanning multiple continents. In recent market activity, the stock has shown resilience following earlier volatility tied to strategic reassessments in electrification. Over the past month, shares advanced approximately 10%, reflecting improved sentiment amid broader equity gains, though year-to-date performance has lagged major benchmarks. Key influences include ongoing adjustments to product strategies and preparations for upcoming earnings, which market participants view as potential indicators of operational momentum.
TM Overview and Recent Performance
Toyota Motor Corporation manufactures a wide range of vehicles, including hybrids and other electrified models, and maintains a substantial global footprint. Recent performance includes roughly 11% gains over the trailing month, supported by positive U.S. sales data showing double-digit increases in vehicle deliveries. Year-to-date results have been softer, influenced by macroeconomic factors and investor focus on upcoming quarterly results. Developments such as partnerships in hydrogen technology and strong demand for hybrid offerings have contributed to sentiment in recent weeks.
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Head-to-Head Comparison
In business model terms, TM operates at a larger scale with greater emphasis on hybrid and electrified vehicles, while HMC maintains a more balanced portfolio including significant motorcycle operations. Growth drivers contrast in recent sales momentum, where TM has demonstrated stronger U.S. volume increases. Recent momentum favors both stocks similarly in the short term, yet TM carries higher absolute valuation alongside potentially greater liquidity. Risk factors include shared automotive cyclicality and regulatory pressures on emissions, though HMC’s smaller size may imply different volatility characteristics. Sector exposure remains concentrated in autos for both, with market sentiment reflecting cautious optimism ahead of earnings.
Tickeron AI Verdict
Based on observable factors such as trend consistency in recent price action and relative positioning through sales data, Tickeron’s AI may currently favor TM with moderate probability. The larger company’s demonstrated volume growth in key markets and established presence in electrified segments provide a potential edge in stability assessments, though outcomes remain subject to earnings results and broader market dynamics.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
To compare these two companies we present long-term analysis, their fundamental ratings and make comparative short-term technical analysis which are presented below. The conclusion is HMC is a Hold and TM is a StrongBuy.
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 1 FA rating(s) are green whileTM’s FA Score has 1 green FA rating(s).
- HMC’s FA Score: 1 green, 4 red.
- TM’s FA Score: 1 green, 4 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 4 TA indicator(s) are bullish while TM’s TA Score has 5 bullish TA indicator(s).
- HMC’s TA Score: 4 bullish, 4 bearish.
- TM’s TA Score: 5 bullish, 4 bearish.
Price Growth
HMC (@Motor Vehicles) experienced а +5.25% price change this week, while TM (@Motor Vehicles) price change was +0.34% for the same time period.
The average weekly price growth across all stocks in the @Motor Vehicles industry was -3.88%. For the same industry, the average monthly price growth was -3.36%, and the average quarterly price growth was -19.91%.
Reported Earning Dates
HMC is expected to report earnings on Aug 12, 2026.
TM is expected to report earnings on Nov 04, 2026.
Industries' Descriptions
@Motor Vehicles (-3.88% 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.
| HMC | TM | HMC / TM | |
| Capitalization | 41.7B | 224B | 19% |
| EBITDA | 1.77T | 7.63T | 23% |
| Gain YTD | 7.531 | -11.810 | -64% |
| P/E Ratio | 10.24 | 8.53 | 120% |
| Revenue | 21.34T | 50.69T | 42% |
| Total Cash | 5.04T | 16.64T | 30% |
| Total Debt | N/A | 43.21T | - |
HMC | TM | ||
|---|---|---|---|
OUTLOOK RATING 1..100 | 39 | 31 | |
VALUATION overvalued / fair valued / undervalued 1..100 | 58 Fair valued | 11 Undervalued | |
PROFIT vs RISK RATING 1..100 | 88 | 86 | |
SMR RATING 1..100 | 77 | 64 | |
PRICE GROWTH RATING 1..100 | 44 | 57 | |
P/E GROWTH RATING 1..100 | 14 | 52 | |
SEASONALITY SCORE 1..100 | n/a | 50 |
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.
TM's Valuation (11) in the Motor Vehicles industry is somewhat better than the same rating for HMC (58). This means that TM’s stock grew somewhat faster than HMC’s over the last 12 months.
TM's Profit vs Risk Rating (86) in the Motor Vehicles industry is in the same range as HMC (88). This means that TM’s stock grew similarly to HMC’s over the last 12 months.
TM's SMR Rating (64) in the Motor Vehicles industry is in the same range as HMC (77). This means that TM’s stock grew similarly to HMC’s over the last 12 months.
HMC's Price Growth Rating (44) in the Motor Vehicles industry is in the same range as TM (57). This means that HMC’s stock grew similarly to TM’s over the last 12 months.
HMC's P/E Growth Rating (14) in the Motor Vehicles industry is somewhat better than the same rating for TM (52). This means that HMC’s stock grew somewhat faster than TM’s over the last 12 months.
| HMC | TM | |
|---|---|---|
| RSI ODDS (%) | 1 day ago 63% | 5 days ago 48% |
| Stochastic ODDS (%) | 1 day ago 55% | 5 days ago 54% |
| Momentum ODDS (%) | 1 day ago 59% | 5 days ago 57% |
| MACD ODDS (%) | 1 day ago 48% | N/A |
| TrendWeek ODDS (%) | 1 day ago 58% | 5 days ago 56% |
| TrendMonth ODDS (%) | 1 day ago 59% | 5 days ago 54% |
| Advances ODDS (%) | 5 days ago 53% | 5 days ago 56% |
| Declines ODDS (%) | 1 day ago 53% | 9 days ago 53% |
| BollingerBands ODDS (%) | 1 day ago 39% | 5 days ago 46% |
| Aroon ODDS (%) | 1 day ago 59% | 5 days ago 46% |
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TM and
Correlation & Price change
A.I.dvisor indicates that over the last year, TM has been closely correlated with HMC. These tickers have moved in lockstep 80% of the time. This A.I.-generated data suggests there is a high statistical probability that if TM jumps, then HMC could also see price increases.