Honda vs Ford

This page compares Honda and Ford, examining their business models, financial performance, and market context. It offers a neutral overview of strategies, priorities, and competitive position to help readers understand differences. Educational content, not financial advice.

This page compares Honda and Ford, examining their business models, financial performance, and market context. It offers a neutral overview of strategies, priorities, and competitive position to help ...

Comparison Snapshot

Key Financial Metrics

HMC

Metric

F

$53.27B

Market Cap

$55.03B

20.35%

Potential Profit

-6.01%

Strong Buy

Analyst Rating

Hold

Why It's Moving

Honda Eyes LG Battery Acquisition as EV Push Gains Momentum

Sale to Honda's U.S. unit expected to close by end of February 2026, enhancing domestic production capabilities.
Launch of new Heritage Service for first-gen NSX restorations started applications in early January, tapping into collector demand.
Upcoming Q3 earnings on February 10 to shed light on fiscal health, with estimated EPS at $1.00.

Sentiment:

🐃Bullish

Ford Powers Ahead with Dividend Payout and Bold $2B Energy Push Amid Strategic Shifts.

Board approved Q1 dividend of $0.15 per share, payable March 2, reinforcing Ford's appeal to income-focused investors amid a tough auto sector.
Appointed Lisa Drake as president of new Ford Energy unit, earmarking $2B for battery cell manufacturing and energy storage to diversify revenue streams.
Reported $600M non-cash pension loss but affirmed unchanged cash flow guidance, highlighting focus on operational execution over accounting noise.

Sentiment:

⚖️Neutral

Honda Eyes LG Battery Acquisition as EV Push Gains Momentum

Sale to Honda's U.S. unit expected to close by end of February 2026, enhancing domestic production capabilities.
Launch of new Heritage Service for first-gen NSX restorations started applications in early January, tapping into collector demand.
Upcoming Q3 earnings on February 10 to shed light on fiscal health, with estimated EPS at $1.00.

Sentiment:

🐃Bullish

Ford Powers Ahead with Dividend Payout and Bold $2B Energy Push Amid Strategic Shifts.

Board approved Q1 dividend of $0.15 per share, payable March 2, reinforcing Ford's appeal to income-focused investors amid a tough auto sector.
Appointed Lisa Drake as president of new Ford Energy unit, earmarking $2B for battery cell manufacturing and energy storage to diversify revenue streams.
Reported $600M non-cash pension loss but affirmed unchanged cash flow guidance, highlighting focus on operational execution over accounting noise.

Sentiment:

⚖️Neutral

Investment Analysis

Honda

HMC

Pros

Honda achieved record-high motorcycle unit sales of 10.76 million in Q2 2025, driven by strong demand in markets such as Brazil.
The company’s stock price rebounded significantly after Q2 2025 earnings, surging nearly 14%, reflecting investor confidence despite automotive losses.
Honda trades at a relatively low price-to-earnings ratio (~10.3x), indicating potential undervaluation compared to sector averages.

Considerations

The automobile division reported a substantial loss of ¥73 billion in Q2 2025 due to production disruptions including semiconductor shortages.
Overall financial performance declined in the first half of fiscal 2025, with sharp drops in revenue and operating profit indicating operational challenges.
Supply chain issues and semiconductor shortages continue to negatively impact production efficiency and profitability in the automotive segment.

Ford

F

Pros

Ford has a smaller market capitalization compared to Honda, which may offer different growth or turnaround opportunities.
Ford benefits from established presence in the North American market with a focus on electrification and commercial vehicle segments.
The company has been enhancing its cost structure and supply chain resilience to mitigate past production setbacks and improve profitability.

Considerations

Ford’s market capitalization is about one-third of Honda’s, reflecting potentially smaller scale and resource availability.
The company faces continuing challenges from cyclical automotive demand fluctuations and commodity cost pressures.
Execution risks remain with ongoing global semiconductor shortages and the complex transition to electric vehicles affecting production and margins.

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