Contrasting Dongfeng Motor Group (OTCMKTS:DNFGY) & Honda Motor (NYSE:HMC)

Dongfeng Motor Group (OTCMKTS:DNFGY) and Honda Motor (NYSE:HMC) are both auto/tires/trucks companies, but which is the superior stock? We will contrast the two businesses based on the strength of their valuation, risk, profitability, institutional ownership, dividends, earnings and analyst recommendations.

Earnings and Valuation

This table compares Dongfeng Motor Group and Honda Motor”s gross revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Dongfeng Motor Group	$14.77 billion	0.63	$8.07 million	N/A	N/A
Honda Motor	$142.43 billion	0.34	$5.52 billion	$2.51	12.36

Honda Motor has higher revenue and earnings than Dongfeng Motor Group.

Insider and Institutional Ownership

5.3% of Honda Motor shares are held by institutional investors. 0.0% of Honda Motor shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a company is poised for long-term growth.

Profitability

This table compares Dongfeng Motor Group and Honda Motor’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Dongfeng Motor Group	N/A	N/A	N/A
Honda Motor	2.34%	4.01%	1.60%

Analyst Recommendations

This is a summary of current ratings for Dongfeng Motor Group and Honda Motor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Dongfeng Motor Group	0	0	0	1	4.00
Honda Motor	1	5	0	1	2.14

Honda Motor has a consensus target price of $25.00, indicating a potential downside of 19.41%. Given Honda Motor’s higher probable upside, analysts clearly believe Honda Motor is more favorable than Dongfeng Motor Group.

Risk and Volatility

Dongfeng Motor Group has a beta of -0.11, meaning that its share price is 111% less volatile than the S&P 500. Comparatively, Honda Motor has a beta of 0.37, meaning that its share price is 63% less volatile than the S&P 500.

Summary

Honda Motor beats Dongfeng Motor Group on 9 of the 11 factors compared between the two stocks.

About Dongfeng Motor Group

Dongfeng Motor Group Company Limited engages in the research, development, manufacture, and sale of commercial and passenger vehicles, engines, and other auto parts in the People's Republic of China. It operates in four segments: Commercial Vehicles, Passenger Vehicles, Financing Service, and Corporate and Others. The company's commercial vehicles include light, medium, and heavy-duty trucks, as well as pickup trucks and buses; passenger vehicles comprise sedans, MPVs, and SUVs; electric and new energy vehicles, and special commercial vehicles; and other automobile related products, as well as automotive parts and components, and automobile equipment. It also provides investment and advisory, car maintenance and repair, insurance agency, automotive technology development and system integration, and logistics, as well as financing and loan services. In addition, it is involved in trading of used car. The company is based in Wuhan, the People's Republic of China. Dongfeng Motor Group Company Limited operates as a subsidiary of Dongfeng Motor Corporation.

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.