Honda Motor (NYSE:HMC – Get Free Report) and Faraday Future Intelligent Electric (NASDAQ:FFAI – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their valuation, institutional ownership, analyst recommendations, dividends, profitability, risk and earnings.
Insider & Institutional Ownership
5.3% of Honda Motor shares are held by institutional investors. Comparatively, 71.7% of Faraday Future Intelligent Electric shares are held by institutional investors. 0.0% of Honda Motor shares are held by insiders. Comparatively, 0.3% of Faraday Future Intelligent Electric shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.
Analyst Recommendations
This is a summary of current recommendations for Honda Motor and Faraday Future Intelligent Electric, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Honda Motor | 2 | 1 | 0 | 2 | 2.40 |
| Faraday Future Intelligent Electric | 1 | 1 | 1 | 0 | 2.00 |
Valuation and Earnings
This table compares Honda Motor and Faraday Future Intelligent Electric”s gross revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Honda Motor | $144.79 billion | 0.36 | -$2.80 billion | ($0.70) | -47.70 |
| Faraday Future Intelligent Electric | $540,000.00 | 12.09 | -$390.70 million | ($223.10) | -0.01 |
Faraday Future Intelligent Electric has lower revenue, but higher earnings than Honda Motor. Honda Motor is trading at a lower price-to-earnings ratio than Faraday Future Intelligent Electric, indicating that it is currently the more affordable of the two stocks.
Volatility and Risk
Honda Motor has a beta of 0.42, indicating that its share price is 58% less volatile than the S&P 500. Comparatively, Faraday Future Intelligent Electric has a beta of 5.7, indicating that its share price is 470% more volatile than the S&P 500.
Profitability
This table compares Honda Motor and Faraday Future Intelligent Electric’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Honda Motor | -0.73% | -1.30% | -0.49% |
| Faraday Future Intelligent Electric | -21,837.97% | -2,531.03% | -100.65% |
Summary
Faraday Future Intelligent Electric beats Honda Motor on 8 of the 15 factors compared between the two stocks.
About Honda Motor
Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, power, and other products in Japan, North America, Europe, Asia, and internationally. It operates through four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Power Product and Other Businesses. The Motorcycle Business segment produces motorcycles, including sports, business, and commuter models; and various off-road vehicles, such as all-terrain vehicles and side-by-sides. The Automobile Business segment offers passenger cars, light trucks, and mini vehicles. The Financial Services Business segment provides various financial services, including retail lending and leasing services to customers, as well as wholesale financing services to dealers. The Power Product and Other Businesses manufactures and sells power products, such as general purpose engines, lawn mowers, generators, water pumps, brush cutters, tillers, outboard marine engines, and snow throwers. This segment also offers HondaJet aircraft. The company also sells spare parts; and provides after-sale services through retail dealers directly, as well as through independent distributors and licensees. Honda Motor Co., Ltd. was founded in 1946 and is headquartered in Tokyo, Japan.
About Faraday Future Intelligent Electric
Faraday Future Intelligent Electric Inc. engages in the design, development, manufacture, engineering, sale, and distribution of electric vehicles and related products in the United States and internationally. The company was founded in 2014 and is headquartered in Gardena, California.
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