Workhorse Group (NASDAQ:WKHS – Get Free Report) and Honda Motor (NYSE:HMC – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will compare the two companies based on the strength of their profitability, earnings, valuation, risk, dividends, analyst recommendations and institutional ownership.
Analyst Recommendations
This is a summary of recent recommendations 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 downside of 3.94%. Given Honda Motor’s stronger consensus rating and higher probable upside, analysts plainly believe Honda Motor is more favorable than Workhorse Group.
Earnings and Valuation
This table compares Workhorse Group and Honda Motor”s gross revenue, earnings per share and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Workhorse Group | $21.21 million | 1.69 | -$64.09 million | ($12.31) | -0.27 |
| Honda Motor | $144.79 billion | 0.38 | -$2.80 billion | ($0.70) | -50.56 |
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.
Insider and Institutional Ownership
16.0% of Workhorse Group shares are held by institutional investors. Comparatively, 5.3% of Honda Motor shares are held by institutional investors. 0.0% of Workhorse Group shares are held by company insiders. Comparatively, 0.0% of Honda Motor shares are held by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock is poised for long-term growth.
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% |
Risk and Volatility
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 0.49, indicating that its stock price is 51% less volatile than the S&P 500.
Summary
Honda Motor beats Workhorse Group on 8 of the 13 factors compared between the two stocks.
About Workhorse Group
Workhorse Group Inc., a technology company, engages in design, manufacture, and sale of zero-emission commercial vehicles in the United States. The company offers commercial vehicles under the Workhorse brand. The company was formerly known as AMP Holding Inc. and changed its name to Workhorse Group Inc. in April 2015. Workhorse Group Inc. was founded in 2007 and is headquartered in Sharonville, Ohio.
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.
Receive News & Ratings for Workhorse Group Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Workhorse Group and related companies with MarketBeat.com's FREE daily email newsletter.
