Financial Analysis: Honda Motor (NYSE:HMC) & Kaixin (NASDAQ:KXIN)

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

Earnings and Valuation

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

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Kaixin	$31.53 million	0.14	-$40.97 million	N/A	N/A
Honda Motor	$142.43 billion	0.33	$5.52 billion	$2.89	10.57

Honda Motor has higher revenue and earnings than Kaixin.

Volatility & Risk

Kaixin has a beta of -0.05, suggesting that its share price is 105% less volatile than the S&P 500. Comparatively, Honda Motor has a beta of 0.48, suggesting that its share price is 52% less volatile than the S&P 500.

Institutional & Insider Ownership

2.0% of Kaixin shares are held by institutional investors. Comparatively, 5.3% of Honda Motor shares are held by institutional investors. 20.8% of Kaixin shares are held by insiders. Comparatively, 0.0% of Honda Motor shares are held by insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Analyst Recommendations

This is a summary of current recommendations for Kaixin and Honda Motor, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Kaixin	0	0	0	0	0.00
Honda Motor	1	4	0	0	1.80

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Kaixin	N/A	N/A	N/A
Honda Motor	2.95%	5.03%	2.10%

Summary

Honda Motor beats Kaixin on 9 of the 10 factors compared between the two stocks.

About Kaixin

Kaixin Auto Holdings primarily engages in the sale of domestic and imported automobiles in the People's Republic of China. It focuses on automobiles brands, such as Audi, BMW, Mercedes-Benz, Land Rover, Bentley, Rolls-Royce, and Porsche. The company is headquartered in Beijing, the People's Republic of China.

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.