Honda Motor Co Ltd ADR (HMC)vsFerrari NV (RACE)
HMC
Honda Motor Co Ltd ADR
$24.09
-1.03%
CONSUMER CYCLICAL · Cap: $31.26B
RACE
Ferrari NV
$341.26
-1.74%
CONSUMER CYCLICAL · Cap: $61.27B
Smart Verdict
WallStSmart Research — data-driven comparison
Honda Motor Co Ltd ADR generates 298478% more annual revenue ($21.34T vs $7.15B). RACE leads profitability with a 22.4% profit margin vs 2.3%. HMC appears more attractively valued with a PEG of 3.45. RACE earns a higher WallStSmart Score of 48/100 (D+).
HMC
Hold39
out of 100
Grade: F
RACE
Hold48
out of 100
Grade: D+
Intrinsic Value Comparison
Multi-model valuation · Graham Formula
Intrinsic value data unavailable for HMC.
Margin of Safety
-48.3%
Fair Value
$258.27
Current Price
$341.26
$82.99 premium
Key Strengths & Concerns
Side-by-side fundamental analysis
Key Strengths
Attractively priced relative to earnings
Reasonable price relative to book value
Generating 160.9B in free cash flow
Every $100 of equity generates 43 in profit
Large-cap with strong market position
Keeps 22 of every $100 in revenue as profit
Strong operational efficiency at 28.6%
Generating 1.4B in free cash flow
Areas to Watch
Grey zone — moderate risk
ROE of 4.3% — below average capital efficiency
2.3% margin — thin
Operating margin of 2.9%
Premium valuation, high expectations priced in
Trading at 13.4x book value
3.8% revenue growth
Expensive relative to growth rate
Comparative Analysis Report
WallStSmart ResearchBull Case : HMC
The strongest argument for HMC centers on P/E Ratio, Price/Book, Free Cash Flow.
Bull Case : RACE
The strongest argument for RACE centers on Return on Equity, Market Cap, Profit Margin. Profitability is solid with margins at 22.4% and operating margin at 28.6%.
Bear Case : HMC
The primary concerns for HMC are Altman Z-Score, Return on Equity, Profit Margin. Thin 2.3% margins leave little buffer for downturns.
Bear Case : RACE
The primary concerns for RACE are P/E Ratio, Price/Book, Revenue Growth.
Key Dynamics to Monitor
RACE carries more volatility with a beta of 0.60 — expect wider price swings.
RACE is growing revenue faster at 3.8% — sustainability is the question.
HMC generates stronger free cash flow (160.9B), providing more financial flexibility.
Monitor AUTO MANUFACTURERS industry trends, competitive dynamics, and regulatory changes.
Bottom Line
RACE scores higher overall (48/100 vs 39/100), backed by strong 22.4% margins. Both earn "Hold" and "Hold" ratings respectively — the choice depends on your investment horizon and risk tolerance.
This analysis is generated from publicly available financial data. Not financial advice.
Honda Motor Co Ltd ADR
CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA
Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, electrical products, and other products in Japan, North America, Europe, Asia, and internationally. The company is headquartered in Tokyo, Japan.
Visit Website →Ferrari NV
CONSUMER CYCLICAL · AUTO MANUFACTURERS · USA
Ferrari NV designs, designs, produces and sells high performance sports cars. The company is headquartered in Maranello, Italy.
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