Financial Review: Honda Motor (HMC) vs. Stagecoach Group (SAGKF)

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Stagecoach Group (NYSE: HMC) and Honda Motor (NYSE:HMC) are both transportation companies, but which is the superior stock? We will compare the two companies based on the strength of their earnings, institutional ownership, risk, valuation, dividends, profitability and analyst recommendations.

Institutional and Insider Ownership

2.1% of Honda Motor shares are owned by institutional investors. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a company will outperform the market over the long term.

Dividends

Honda Motor pays an annual dividend of $0.57 per share and has a dividend yield of 2.0%. Stagecoach Group does not pay a dividend. Honda Motor pays out 15.7% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent recommendations and price targets for Stagecoach Group and Honda Motor, as provided by MarketBeat.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Stagecoach Group 0 0 0 0 N/A
Honda Motor 0 2 4 0 2.67

Honda Motor has a consensus target price of $42.00, indicating a potential upside of 46.60%. Given Honda Motor’s higher possible upside, analysts plainly believe Honda Motor is more favorable than Stagecoach Group.

Valuation and Earnings

This table compares Stagecoach 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
Stagecoach Group $5.34 billion 0.23 N/A N/A N/A
Honda Motor $138.71 billion 0.37 $9.53 billion $3.62 7.91

Honda Motor has higher revenue and earnings than Stagecoach Group.

Profitability

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

Net Margins Return on Equity Return on Assets
Stagecoach Group N/A N/A N/A
Honda Motor 7.09% 8.90% 3.75%

Risk and Volatility

Stagecoach Group has a beta of 1.13, indicating that its stock price is 13% more volatile than the S&P 500. Comparatively, Honda Motor has a beta of 1.05, indicating that its stock price is 5% more volatile than the S&P 500.

Summary

Honda Motor beats Stagecoach Group on 9 of the 11 factors compared between the two stocks.

Stagecoach Group Company Profile

Stagecoach Group plc, together with its subsidiaries, provides public transportation services in the United Kingdom, mainland Europe, the United States, and Canada. It operates through five segments: UK Bus (Regional Operations), megabus Europe, UK Bus (London), North America, and UK Rail. The company offers bus, coach, train, and tram services. It operates city buses primarily in Liverpool, Newcastle, Hull, Manchester, Oxford, Sheffield, Cambridge, and Exeter through a fleet of approximately 6,900 buses and coaches; inter-urban services linking major towns within its regional operating areas, as well as megabus.com, an inter-city coach service; and buses from 10 depots with a fleet of approximately 1,300 buses serving routes in and around east and south-east London. The company also operates bus services under contract to transit authorities and others; commuter bus services; inter-city coach services; bus tours; charter operations; and sightseeing bus services through a fleet of approximately 2,100 vehicles in the United States and Canada. In addition, it operates South West Trains in south west England out of London Waterloo railway station, as well as Island Line services on the Isle of Wight; East Midlands main line train services to London St Pancras, regional rail services in the East Midlands area, and inter-regional services between Norwich and Liverpool; the Virgin Trains East Coast providing inter-city train services between London and Edinburgh, Newcastle, Leeds, and York; and Supertram, a 28 km light rail network with three routes in the city of Sheffield. The company was founded in 1980 and is headquartered in Perth, the United Kingdom.

Honda Motor Company Profile

Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, power products, and other products worldwide. The company operates through four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Power Product and Other Businesses. The Motorcycle Business segment produces sports models, including trial and moto-cross racing vehicles; business and commuter models; all-terrain vehicles; and side-by-side models. The Automobile Business segment offers passenger cars, light trucks, and mini vehicles, as well as vehicles powered with alternative fuel, such as ethanol, battery electric, and fuel cell vehicles. The Financial Services Business segment provides various financial services, including retail lending and leasing services to customers, as well as other financial services comprising wholesale financing to dealers. The Power Product and Other Businesses segment manufactures and sells various power products consisting of general-purpose engines, generators, water pumps, lawn mowers, riding mowers, robotic mowers, brush cutters, tillers, snow blowers, outboard marine engines, and walking assist devices, as well as portable battery inverter power sources. 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 overseas operations, independent distributors, and licensees. Honda Motor Co., Ltd. sells its products through independent retail dealers. Honda Motor Co., Ltd. was founded in 1946 and is headquartered in Tokyo, Japan.

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