Workhorse Group (NASDAQ:WKHS – Get Free Report) and Honda Motor (NYSE:HMC – Get Free Report) are both consumer discretionary companies, but which is the better stock? We will compare the two businesses based on the strength of their risk, dividends, valuation, analyst recommendations, earnings, profitability and institutional ownership.
Institutional & Insider Ownership
16.0% of Workhorse Group shares are owned by institutional investors. Comparatively, 5.3% of Honda Motor shares are owned by institutional investors. 0.0% of Workhorse Group shares are owned by insiders. Comparatively, 0.0% of Honda Motor 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.
Analyst Recommendations
This is a summary of recent ratings for Workhorse Group and Honda Motor, as provided by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Workhorse Group | 1 | 0 | 0 | 0 | 1.00 |
| Honda Motor | 1 | 2 | 0 | 2 | 2.60 |
Honda Motor has a consensus target price of $34.00, suggesting a potential upside of 1.92%. Given Honda Motor’s stronger consensus rating and higher probable upside, analysts clearly believe Honda Motor is more favorable than Workhorse Group.
Volatility & Risk
Workhorse Group has a beta of 2.69, indicating that its stock price is 169% more volatile than the S&P 500. Comparatively, Honda Motor has a beta of 0.48, indicating that its stock price is 52% less volatile than the S&P 500.
Valuation and Earnings
This table compares Workhorse Group and Honda Motor”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Workhorse Group | $27.21 million | 1.39 | -$64.09 million | ($12.31) | -0.28 |
| Honda Motor | $23,201.59 billion | 0.00 | -$2.80 billion | ($0.70) | -47.65 |
Workhorse Group has higher earnings, but lower revenue than Honda Motor. Honda Motor is trading at a lower price-to-earnings ratio than Workhorse Group, indicating that it is currently the more affordable of the two stocks.
Profitability
This table compares Workhorse Group and Honda Motor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Workhorse Group | -357.61% | -311.04% | -75.40% |
| Honda Motor | -0.73% | -1.30% | -0.49% |
Summary
Honda Motor beats Workhorse Group on 8 of the 13 factors compared between the two stocks.
About Workhorse Group
Workhorse Group, Inc. is an American technology and manufacturing company focused on all-electric commercial vehicles. The company develops purpose-built vehicles for last-mile delivery, logistics, and other commercial fleet applications, with an emphasis on reducing operating emissions and supporting the transition from conventional gasoline- and diesel-powered vehicles. Workhorse’s product portfolio has included electric step vans and chassis-cab vehicles designed for parcel delivery, trades, and other vocational uses.
About Honda Motor
Honda Motor Co., Ltd. is a Japan-based manufacturer of automobiles, motorcycles and other mobility products. Its vehicle lineup includes passenger cars, SUVs and electrified models, while its motorcycle business serves consumers and commercial users in markets around the world. The company also makes power equipment, marine engines and other products, and provides financial services that support vehicle and equipment sales. Honda’s aviation subsidiary, Honda Aircraft Company, develops and manufactures the HondaJet business aircraft.
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