HMC vs. TM
HMC (Honda Motor Co., Ltd.) and TM (Toyota Motor Corporation) are both stocks. Both operate in the Auto Manufacturers industry within the Consumer Cyclical sector. Over the past 10 years, HMC returned 3.29%/yr vs 8.55%/yr for TM. A 0.62 correlation means they provide meaningful diversification when combined.
Performance
HMC vs. TM - Performance Comparison
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Returns By Period
In the year-to-date period, HMC achieves a -6.00% return, which is significantly higher than TM's -15.81% return. Over the past 10 years, HMC has underperformed TM with an annualized return of 3.29%, while TM has yielded a comparatively higher 8.55% annualized return.
HMC
- 1D
- 4.65%
- 1M
- 16.14%
- YTD
- -6.00%
- 6M
- -5.62%
- 1Y
- -5.94%
- 3Y*
- 0.76%
- 5Y*
- -0.47%
- 10Y*
- 3.29%
TM
- 1D
- -0.15%
- 1M
- -4.29%
- YTD
- -15.81%
- 6M
- -7.79%
- 1Y
- -4.45%
- 3Y*
- 9.84%
- 5Y*
- 2.29%
- 10Y*
- 8.55%
HMC vs. TM - Yearly Performance Comparison
| 2026 (YTD) | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | |
|---|---|---|---|---|---|---|---|---|---|---|
HMC Honda Motor Co., Ltd. | -6.00% | 8.04% | -5.14% | 39.86% | -16.69% | 3.61% | 2.88% | 10.34% | -20.81% | 20.02% |
TM Toyota Motor Corporation | -15.81% | 13.82% | 8.88% | 38.23% | -24.43% | 23.21% | 13.62% | 22.69% | -5.81% | 12.10% |
Correlation
The correlation between HMC and TM is 0.76, which is moderate. They share some common price drivers but move independently often enough to provide real diversification benefit when combined.
| Correlation | |
|---|---|
Correlation (1Y) Calculated over the trailing 1-year period | 0.76 |
Correlation (3Y) Calculated over the trailing 3-year period | 0.73 |
Correlation (5Y) Calculated over the trailing 5-year period | 0.74 |
Correlation (10Y) Calculated over the trailing 10-year period | 0.72 |
Correlation (All Time) Calculated using the full available price history since Mar 18, 1980 | 0.62 |
The correlation between HMC and TM shifts across timeframes, from 0.62 (all time) to 0.76 (1 year), reflecting how their relationship changes across market environments.
Fundamentals
HMC:
$37.07B
TM:
$234.89B
HMC:
-$321.49
TM:
$2.98K
HMC:
0.00
TM:
0.00
HMC:
0.00
TM:
0.01
HMC:
$22.00T
TM:
$51.16T
HMC:
$3.63T
TM:
$8.54T
HMC:
$1.01T
TM:
$7.11T
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Return for Risk
HMC vs. TM — Risk / Return Rank
HMC
TM
HMC vs. TM - Risk-Adjusted Trends Comparison
This table presents a comparison of risk-adjusted performance metrics for Honda Motor Co., Ltd. (HMC) and Toyota Motor Corporation (TM). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
| HMC | TM | Difference | |
|---|---|---|---|
Sharpe ratioReturn per unit of total volatility | -0.20 | -0.15 | -0.05 |
Sortino ratioReturn per unit of downside risk | -0.09 | -0.02 | -0.07 |
Omega ratioGain probability vs. loss probability | 0.99 | 1.00 | -0.01 |
Calmar ratioReturn relative to maximum drawdown | -0.19 | -0.16 | -0.03 |
Martin ratioReturn relative to average drawdown | -0.39 | -0.42 | +0.03 |
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month. | |||
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Sharpe Ratios by Period
| HMC | TM | Difference | |
|---|---|---|---|
Sharpe Ratio (1Y)Calculated over the trailing 1-year period | -0.20 | -0.15 | -0.05 |
Sharpe Ratio (5Y)Calculated over the trailing 5-year period | -0.02 | 0.09 | -0.10 |
Sharpe Ratio (10Y)Calculated over the trailing 10-year period | 0.13 | 0.36 | -0.23 |
Sharpe Ratio (All Time)Calculated using the full available price history | 0.17 | 0.31 | -0.14 |
Drawdowns
HMC vs. TM - Drawdown Comparison
The maximum HMC drawdown since its inception was -90.46%, which is greater than TM's maximum drawdown of -60.15%. Use the drawdown chart below to compare losses from any high point for HMC and TM.
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Drawdown Indicators
| HMC | TM | Difference | |
|---|---|---|---|
Max DrawdownLargest peak-to-trough decline | -90.46% | -60.15% | -30.31% |
Max Drawdown (1Y)Largest decline over 1 year | -31.18% | -27.42% | -3.76% |
Max Drawdown (3Y)Largest decline over 3 years | -35.41% | -34.92% | -0.49% |
Max Drawdown (5Y)Largest decline over 5 years | -35.41% | -36.80% | +1.39% |
Max Drawdown (10Y)Largest decline over 10 years | -43.12% | -36.80% | -6.32% |
Current DrawdownCurrent decline from peak | -20.98% | -27.42% | +6.44% |
Average DrawdownAverage peak-to-trough decline | -36.11% | -20.99% | -15.12% |
Ulcer IndexDepth and duration of drawdowns from previous peaks | 15.29% | 10.75% | +4.54% |
Volatility
HMC vs. TM - Volatility Comparison
Honda Motor Co., Ltd. (HMC) has a higher volatility of 10.32% compared to Toyota Motor Corporation (TM) at 8.10%. This indicates that HMC's price experiences larger fluctuations and is considered to be riskier than TM based on this measure. The chart below showcases a comparison of their rolling one-month volatility.
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Volatility by Period
| HMC | TM | Difference | |
|---|---|---|---|
Volatility (1M)Calculated over the trailing 1-month period | 10.32% | 8.10% | +2.22% |
Volatility (6M)Calculated over the trailing 6-month period | 20.56% | 20.34% | +0.22% |
Volatility (1Y)Calculated over the trailing 1-year period | 29.95% | 29.19% | +0.76% |
Volatility (5Y)Calculated over the trailing 5-year period, annualized | 26.81% | 26.90% | -0.09% |
Volatility (10Y)Calculated over the trailing 10-year period, annualized | 25.41% | 23.63% | +1.78% |
Dividends
HMC vs. TM - Dividend Comparison
HMC's dividend yield for the trailing twelve months is around 2.46%, more than TM's 1.59% yield.
| Position | TTM | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
HMC Honda Motor Co., Ltd. | 2.46% | 4.67% | 3.19% | 3.29% | 4.00% | 3.08% | 2.72% | 2.90% | 2.27% | 2.45% | 2.87% | 2.86% |
TM Toyota Motor Corporation | 1.59% | 2.95% | 2.81% | 2.45% | 2.90% | 2.45% | 2.74% | 1.30% | 3.40% | 2.96% | 3.23% | 5.59% |
Financials
HMC vs. TM - Financials Comparison
This section allows you to compare key financial metrics between Honda Motor Co., Ltd. and Toyota Motor Corporation. You can select fields from income statements, balance sheets, and cash flow statements to easily visualize and compare the financial health of both companies.
Total Revenue: Total amount of money received from sales and other business activities
HMC vs. TM - Profitability Comparison
HMC - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Honda Motor Co., Ltd. reported a gross profit of 378.92B and revenue of 5.93T. Therefore, the gross margin over that period was 6.4%.
TM - Gross Margin
Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Toyota Motor Corporation reported a gross profit of 1.94T and revenue of 12.83T. Therefore, the gross margin over that period was 15.1%.
HMC - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Honda Motor Co., Ltd. reported an operating income of -1.02T and revenue of 5.93T, resulting in an operating margin of -17.3%.
TM - Operating Margin
Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Toyota Motor Corporation reported an operating income of 579.96B and revenue of 12.83T, resulting in an operating margin of 4.5%.
HMC - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Honda Motor Co., Ltd. reported a net income of -905.72B and revenue of 5.93T, resulting in a net margin of -15.3%.
TM - Net Margin
Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Toyota Motor Corporation reported a net income of 832.22B and revenue of 12.83T, resulting in a net margin of 6.5%.
Frequently Asked Questions
HMC and TM have a correlation of 0.76, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.
HMC has higher volatility (10.32%) compared to TM (8.10%). In terms of maximum drawdown, HMC dropped -90.46% vs TM's -60.15%.
TM currently has the higher Sharpe Ratio (-0.15 vs -0.20), meaning it's delivered slightly more return per unit of risk over the trailing 12 months. However, this ranking shifts over time - use the Risk/Return Score above for a more comprehensive view that combines Sharpe, Sortino, and other measures used by quantitative funds.
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