Head-To-Head Survey: ECD Automotive Design (NASDAQ:ECDA) vs. Honda Motor (NYSE:HMC)

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

Analyst Ratings

This is a summary of recent ratings for Honda Motor and ECD Automotive Design, as reported by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Honda Motor	0	2	0	0	2.00
ECD Automotive Design	0	0	0	0	0.00

Insider & Institutional Ownership

5.3% of Honda Motor shares are held by institutional investors. Comparatively, 94.8% of ECD Automotive Design shares are held by institutional investors. 0.0% of Honda Motor shares are held by company insiders. Comparatively, 77.3% of ECD Automotive Design shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Risk and Volatility

Honda Motor has a beta of 0.57, meaning that its stock price is 43% less volatile than the S&P 500. Comparatively, ECD Automotive Design has a beta of -0.83, meaning that its stock price is 183% less volatile than the S&P 500.

Profitability

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

	Net Margins	Return on Equity	Return on Assets
Honda Motor	4.76%	7.81%	3.38%
ECD Automotive Design	N/A	N/A	N/A

Earnings & Valuation

This table compares Honda Motor and ECD Automotive Design”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Honda Motor	$21,758.04 billion	0.00	$7.64 billion	$4.30	6.76
ECD Automotive Design	$20.31 million	0.87	-$1.60 million	($0.25)	-1.99

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

Summary

Honda Motor beats ECD Automotive Design on 9 of the 12 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 ECD Automotive Design

ECD Automotive Design, Inc. engages in the production and sale of customized Land Rover vehicles in the United States. The company also provides repair or upgrade services and extended warranties to customers. It restores various vehicles, including Land Rovers Defenders, Land Rover Series IIA and III, the Range Rover Classic, and Jaguar E-Type. The company was founded in 2013 and is based in Kissimmee, Florida.