Financial Analysis: GreenPower Motor (NASDAQ:GP) & Honda Motor (NYSE:HMC)

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

Volatility & Risk

Honda Motor has a beta of 0.43, suggesting that its stock price is 57% less volatile than the S&P 500. Comparatively, GreenPower Motor has a beta of 1.69, suggesting that its stock price is 69% more volatile than the S&P 500.

Valuation and Earnings

This table compares Honda Motor and GreenPower Motor”s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Honda Motor	$21,796.61 billion	0.00	-$2.80 billion	($1.91)	-14.54
GreenPower Motor	$16.39 million	0.50	-$5.48 million	($1.66)	-0.98

GreenPower Motor has lower revenue, but higher earnings than Honda Motor. Honda Motor is trading at a lower price-to-earnings ratio than GreenPower Motor, indicating that it is currently the more affordable of the two stocks.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Honda Motor	-1.75%	-3.07%	-1.18%
GreenPower Motor	-33.41%	N/A	-12.75%

Insider and Institutional Ownership

5.3% of Honda Motor shares are held by institutional investors. Comparatively, 1.7% of GreenPower Motor shares are held by institutional investors. 0.0% of Honda Motor shares are held by insiders. Comparatively, 28.1% of GreenPower Motor shares are held by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.

Analyst Recommendations

This is a summary of current recommendations and price targets for Honda Motor and GreenPower Motor, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Honda Motor	2	2	0	1	2.00
GreenPower Motor	1	1	0	0	1.50

Honda Motor presently has a consensus target price of $25.00, suggesting a potential downside of 9.96%. Given Honda Motor’s stronger consensus rating and higher possible upside, analysts clearly believe Honda Motor is more favorable than GreenPower Motor.

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 GreenPower Motor

GreenPower Motor Company Inc. designs, manufactures, and distributes electric vehicles for commercial markets in the United States and Canada. The company offers commercial vehicles for delivery, public transit, schools, vanpools, micro-transit, shuttles, and other; and passenger, student, low floor transit, and cargo transportation. It leases its vehicles to customers. GreenPower Motor Company Inc. was founded in 2010 and is headquartered in Vancouver, Canada.