WallStSmart

Honda Motor Co Ltd ADR (HMC)vsYum! Brands Inc (YUM)

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Smart Verdict

WallStSmart Research — data-driven comparison

Honda Motor Co Ltd ADR generates 249804% more annual revenue ($21.80T vs $8.72B). YUM leads profitability with a 25.4% profit margin vs -1.9%. YUM appears more attractively valued with a PEG of 1.97. YUM earns a higher WallStSmart Score of 65/100 (C+).

HMC

Hold

39

out of 100

Grade: F

Growth: 4.7Profit: 2.0Value: 4.0Quality: 4.0
Piotroski: 2/9Altman Z: 1.45

YUM

Buy

65

out of 100

Grade: C+

Growth: 7.3Profit: 8.5Value: 4.0Quality: 4.5
Piotroski: 2/9Altman Z: 0.92
IV

Intrinsic Value Comparison

Multi-model valuation · Graham Formula

Intrinsic value data unavailable for HMC.

YUMSignificantly Overvalued (-79.7%)

Margin of Safety

-79.7%

Fair Value

$88.51

Current Price

$150.76

$62.25 premium

UndervaluedFair: $88.51Overvalued

Key Strengths & Concerns

Side-by-side fundamental analysis

Key Strengths

HMC2 strengths · Avg: 10.0/10
Price/BookValuation
0.6x10/10

Reasonable price relative to book value

Free Cash FlowQuality
$235.62B10/10

Generating 235.6B in free cash flow

YUM4 strengths · Avg: 9.8/10
Operating MarginProfitability
32.2%10/10

Strong operational efficiency at 32.2%

EPS GrowthGrowth
131.6%10/10

Earnings expanding 131.6% YoY

Debt/EquityHealth
-1.6410/10

Conservative balance sheet, low leverage

Profit MarginProfitability
25.4%9/10

Keeps 25 of every $100 in revenue as profit

Areas to Watch

HMC4 concerns · Avg: 2.5/10
Debt/EquityHealth
1.143/10

Elevated debt levels

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

PEG RatioValuation
3.452/10

Expensive relative to growth rate

Return on EquityProfitability
-3.6%2/10

ROE of -3.6% — below average capital efficiency

YUM4 concerns · Avg: 3.0/10
PEG RatioValuation
1.974/10

Expensive relative to growth rate

Return on EquityProfitability
0.0%3/10

ROE of 0.0% — below average capital efficiency

Piotroski F-ScoreQuality
2/93/10

Weak financial health signals

Altman Z-ScoreHealth
0.922/10

Distress zone — elevated risk

Comparative Analysis Report

WallStSmart Research

Bull Case : HMC

The strongest argument for HMC centers on Price/Book, Free Cash Flow.

Bull Case : YUM

The strongest argument for YUM centers on Operating Margin, EPS Growth, Debt/Equity. Profitability is solid with margins at 25.4% and operating margin at 32.2%. Revenue growth of 12.3% demonstrates continued momentum.

Bear Case : HMC

The primary concerns for HMC are Debt/Equity, Piotroski F-Score, PEG Ratio.

Bear Case : YUM

The primary concerns for YUM are PEG Ratio, Return on Equity, Piotroski F-Score.

Key Dynamics to Monitor

HMC profiles as a turnaround stock while YUM is a mature play — different risk/reward profiles.

YUM carries more volatility with a beta of 0.56 — expect wider price swings.

YUM is growing revenue faster at 12.3% — sustainability is the question.

HMC generates stronger free cash flow (235.6B), providing more financial flexibility.

Bottom Line

YUM scores higher overall (65/100 vs 39/100), backed by strong 25.4% margins and 12.3% revenue growth. Both earn "Buy" 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.

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Yum! Brands Inc

CONSUMER CYCLICAL · RESTAURANTS · USA

Yum! Brands, Inc. is an American fast food corporation listed on the Fortune 1000. Yum! operates the brands KFC, Pizza Hut, Taco Bell, The Habit Burger Grill, and WingStreet worldwide, except in China, where the brands are operated by a separate company, Yum China.

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