Toyota vs Honda

Explore a detailed stock comparison between Toyota Motor Corporation and Honda Motor Co., Ltd. This page provides an in-depth look at their respective business models, financial performance, and the broader market context shaping their automotive and investment landscapes. Gain insights into two of the world's leading car manufacturers from a stock perspective. Educational content, not financial advice.

Explore a detailed stock comparison between Toyota Motor Corporation and Honda Motor Co., Ltd. This page provides an in-depth look at their respective business models, financial performance, and the b...

Comparison Snapshot

Key Financial Metrics

TM

Metric

HMC

$352.70B

Market Cap

$52.37B

-8.24%

Potential Profit

22.65%

Strong Buy

Analyst Rating

Strong Buy

Why It's Moving

Toyota Gears Up for Record 10M+ Vehicle Production in 2026 Amid Surging Hybrid Demand

Global production target exceeds 10 million units, with Japan output topping 3 million, building on a 5% rise to 9.17 million vehicles through November 2025.
U.S. sales hit 2.52 million in 2025, up 8%, driven by electrified vehicles that made up 47% of volume and grew 17.6%.
Leadership emphasized resilience and quality focus in recent New Year's messages, highlighting front-line efforts to launch new models despite challenges.

Sentiment:

🐃Bullish

Honda Gears Up for 2026 U.S. Sales Push with Fresh Models and Value Plays Amid Tough Competition

Nearly full Honda and Acura portfolios redesigned in past 18 months, delivering one of industry's freshest lineups as 2026 nears.
Boosting value trims on hits like CR-V, Civic, Accord, and entry Acura models to address consumer affordability pressures.
Rolling out 2026 Pilot refresh with bigger touchscreen and safety upgrades, plus Civic Hybrid enhancements and a new towable Base Station trailer for outdoor enthusiasts.

Sentiment:

🐃Bullish

Toyota Gears Up for Record 10M+ Vehicle Production in 2026 Amid Surging Hybrid Demand

Global production target exceeds 10 million units, with Japan output topping 3 million, building on a 5% rise to 9.17 million vehicles through November 2025.
U.S. sales hit 2.52 million in 2025, up 8%, driven by electrified vehicles that made up 47% of volume and grew 17.6%.
Leadership emphasized resilience and quality focus in recent New Year's messages, highlighting front-line efforts to launch new models despite challenges.

Sentiment:

🐃Bullish

Honda Gears Up for 2026 U.S. Sales Push with Fresh Models and Value Plays Amid Tough Competition

Nearly full Honda and Acura portfolios redesigned in past 18 months, delivering one of industry's freshest lineups as 2026 nears.
Boosting value trims on hits like CR-V, Civic, Accord, and entry Acura models to address consumer affordability pressures.
Rolling out 2026 Pilot refresh with bigger touchscreen and safety upgrades, plus Civic Hybrid enhancements and a new towable Base Station trailer for outdoor enthusiasts.

Sentiment:

🐃Bullish

Investment Analysis

Toyota

TM

Pros

Toyota exceeded analyst earnings expectations with statutory profit 43% above forecasts in recent interim results.
Automotive operating income rose 39.1% in FY2026 first quarter due to improved financing margins in sales finance.
Analysts maintain a consensus price target and forecast modest revenue growth in line with industry peers for 2026.

Considerations

Statutory earnings per share expected to plunge 26% to JP¥262 in 2026 amid slowing revenue growth.
FY2026 first quarter operating income declined 10.9% and net income fell 36.9% year-over-year.
High debt-to-equity ratio exposes balance sheet to risks during economic downturns.

Honda

HMC

Pros

Honda maintains strong hybrid vehicle sales momentum, supporting profitability amid EV transition.
Diversified revenue from motorcycles and power equipment provides resilience against automotive cyclicality.
Solid balance sheet enables sustained investment in electrification and advanced driver assistance technologies.

Considerations

Intensifying competition in EVs pressures market share and requires accelerated R&D spending.
Elevated exposure to China market heightens regulatory and demand volatility risks.
Rising input costs and yen fluctuations challenge operating margins in core automotive segment.

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