Financial Contrast: GreenPower Motor (NASDAQ:GP) and Honda Motor (NYSE:HMC)

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

Profitability

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

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

Valuation & Earnings

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

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

GreenPower Motor has higher earnings, but lower revenue 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.

Analyst Recommendations

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

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

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

Insider and Institutional Ownership

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

Volatility and Risk

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

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.

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.