Honda vs Ross

This page compares Honda vs Ross, two distinct retail and manufacturing businesses. It examines business models, financial performance, and market context to help readers understand how each company operates and competes. The analysis presents facts and reference points in clear terms, keeping language neutral and accessible. Educational content, not financial advice.

This page compares Honda vs Ross, two distinct retail and manufacturing businesses. It examines business models, financial performance, and market context to help readers understand how each company o...

Comparison Snapshot

Key Financial Metrics

HMC

Metric

ROST

$53.27B

Market Cap

$61.49B

20.35%

Potential Profit

0.17%

Strong Buy

Analyst Rating

Buy

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

Ross Stores Hits Record High as Earnings Beat Streak and Leadership Shift Fuel Momentum.

Q3 comps surged 7% with EPS of $1.58 beating estimates by 12.86%, signaling robust consumer demand for bargain apparel and home goods.
Zacks flags +3.09% Earnings ESP and Rank #2 (Buy) ahead of next report, highlighting potential for another beat after recent 7.74% average surprise.
Board Chair Michael Balmuth stepped down January 31 with new leadership eyeing store expansions, self-checkout rollouts, and comps growth of 4-7%.

Sentiment:

🐃Bullish

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

Ross Stores Hits Record High as Earnings Beat Streak and Leadership Shift Fuel Momentum.

Q3 comps surged 7% with EPS of $1.58 beating estimates by 12.86%, signaling robust consumer demand for bargain apparel and home goods.
Zacks flags +3.09% Earnings ESP and Rank #2 (Buy) ahead of next report, highlighting potential for another beat after recent 7.74% average surprise.
Board Chair Michael Balmuth stepped down January 31 with new leadership eyeing store expansions, self-checkout rollouts, and comps growth of 4-7%.

Sentiment:

🐃Bullish

Investment Analysis

Honda

HMC

Pros

Honda achieved record-high motorcycle sales with 10.76 million units in Q2 2025, driven by strong demand in key markets like Brazil.
The company is actively addressing automobile losses by optimising its supply chain and focusing on cost rationalisation.
Honda trades at a relatively low price-to-book ratio of 0.6x and price-to-sales ratio of 0.3x, indicating potential undervaluation.

Considerations

Automobile segment posted significant losses of ¥73 billion in Q2 2025 due to production disruptions from semiconductor shortages.
One-time expenses related to EV investments and tariffs led to substantial profit declines, impacting overall profitability.
Currency effects and ongoing supply chain challenges continue to weigh on earnings and create profit volatility.

Ross

ROST

Pros

Ross Stores benefits from a strong position in the off-price retail sector, which tends to perform well during economic uncertainty.
The company has demonstrated resilience in adapting its inventory and pricing strategies to changing consumer demand patterns.
Ross has a broad geographic footprint across the United States, supporting stable revenue generation and market penetration.

Considerations

The retail sector faces macroeconomic headwinds such as inflation and consumer spending shifts that could pressure Ross’s margins.
Competition from both traditional retailers and online channels remains intense, challenging Ross’s market share growth.
Ross's business is sensitive to economic cycles, making it vulnerable to downturns that reduce discretionary consumer spending.

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