Critical Review: Honda Motor (NYSE:HMC) versus Jiuzi (NASDAQ:JZXN)

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

Analyst Recommendations

This is a breakdown of current ratings and price targets for Honda Motor and Jiuzi, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Honda Motor	0	6	0	0	2.00
Jiuzi	1	0	0	0	1.00

Risk & Volatility

Honda Motor has a beta of 0.48, indicating that its share price is 52% less volatile than the S&P 500. Comparatively, Jiuzi has a beta of 1.49, indicating that its share price is 49% more volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Honda Motor	3.04%	5.18%	2.11%
Jiuzi	N/A	N/A	N/A

Valuation and Earnings

This table compares Honda Motor and Jiuzi”s top-line revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Honda Motor	$142.43 billion	0.32	$5.52 billion	$3.06	9.46
Jiuzi	$97,465.00	121.89	-$59.13 million	N/A	N/A

Honda Motor has higher revenue and earnings than Jiuzi.

Insider & Institutional Ownership

5.3% of Honda Motor shares are owned by institutional investors. Comparatively, 0.6% of Jiuzi shares are owned by institutional investors. 0.0% of Honda Motor shares are owned by insiders. Comparatively, 60.5% of Jiuzi shares are owned by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.

Summary

Honda Motor beats Jiuzi on 7 of the 10 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 Jiuzi

Jiuzi Holdings, Inc., through its subsidiary, Zhejiang Jiuzi New Energy Vehicles Co., Ltd., franchises and operates retail stores under the Jiuzi brand that sell new energy vehicles, plug-in electric vehicles, and related components and parts in the People’s Republic of China. It provides corporate investment consulting services. The company also engages in new energy vehicle retail, new energy vehicle component sales, new energy vehicle battery sales, vehicle audio equipment and electronics sales, vehicle ornament sales, technology service and development, marketing planning, vehicle rentals, etc. In addition, it is involved in the research and development of automotive components and part and technical service; sales of electrical accessories for new energy vehicles; sales of charging/battery swap infrastructure for new energy vehicles; sales of electricity chargers, and sales of automotive spare parts and accessories, as well as in the management services of supply chain, automobiles sales, and whole vehicle sales of new energy cars. The company was founded in 2017 and is based in Hangzhou, the People’s Republic of China.