HMC vs. TSLA

Last updated Jun 4, 2026

HMC (Honda Motor Co., Ltd.) and TSLA (Tesla, Inc.) 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 40.05%/yr for TSLA. At a 0.25 correlation, their price movements are largely independent.

Performance

HMC vs. TSLA - Performance Comparison

The chart below illustrates the hypothetical performance of a $10,000 investment in Honda Motor Co., Ltd. (HMC) and Tesla, Inc. (TSLA). The values are adjusted to include any dividend payments, if applicable.

Returns By Period

The year-to-date returns for both investments are quite close, with HMC having a -6.00% return and TSLA slightly higher at -5.79%. Over the past 10 years, HMC has underperformed TSLA with an annualized return of 3.29%, while TSLA has yielded a comparatively higher 40.05% 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%

TSLA

• 1D: -0.01%
• 1M: 7.95%
• YTD: -5.79%
• 6M: -5.16%
• 1Y: 23.07%
• 3Y*: 25.57%
• 5Y*: 16.24%
• 10Y*: 40.05%

*Multi-year figures are annualized to reflect compound growth (CAGR)

HMC vs. TSLA - 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%
TSLA Tesla, Inc.	-5.79%	11.36%	62.52%	101.72%	-65.03%	49.76%	743.44%	25.70%	6.89%	45.70%

Correlation

The correlation between HMC and TSLA is 0.29, which is low. Their price movements are largely independent, making them effective diversification partners.

	Correlation
Correlation (1Y) Calculated over the trailing 1-year period	0.29
Correlation (3Y) Calculated over the trailing 3-year period	0.25
Correlation (5Y) Calculated over the trailing 5-year period	0.30
Correlation (10Y) Calculated over the trailing 10-year period	0.25
Correlation (All Time) Calculated using the full available price history since Jun 30, 2010	0.25

Fundamentals

Market Cap HMC : $37.07B TSLA : $1.50T
EPS HMC : -$321.49 TSLA : $1.10
PS Ratio HMC : 0.00 TSLA : 15.28
PB Ratio HMC : 0.00 TSLA : 17.82
Total Revenue (TTM) HMC : $22.00T TSLA : $97.88B
Gross Profit (TTM) HMC : $3.63T TSLA : $18.66B
EBITDA (TTM) HMC : $1.01T TSLA : $10.48B

Return for Risk

HMC vs. TSLA — Risk / Return Rank

Compare risk-adjusted metric ranks to identify better-performing investments over the past 12 months.

HMC

HMC Risk / Return Rank: 31
HMC Sharpe Ratio Rank: 32
HMC Sortino Ratio Rank: 27
HMC Omega Ratio Rank: 28
HMC Calmar Ratio Rank: 34
HMC Martin Ratio Rank: 34

TSLA

TSLA Risk / Return Rank: 55
TSLA Sharpe Ratio Rank: 57
TSLA Sortino Ratio Rank: 53
TSLA Omega Ratio Rank: 51
TSLA Calmar Ratio Rank: 57
TSLA Martin Ratio Rank: 58

The rank (0–100) shows how this investment's returns compare to the risk taken. Higher = better. Based on the past 12 months of data, combining Sharpe, Sortino, and other metrics used by quantitative funds and institutional investors.

HMC vs. TSLA - Risk-Adjusted Trends Comparison

This table presents a comparison of risk-adjusted performance metrics for Honda Motor Co., Ltd. (HMC) and Tesla, Inc. (TSLA). 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	TSLA	Difference
Sharpe ratio Return per unit of total volatility	-0.20	0.50	-0.70
Sortino ratio Return per unit of downside risk	-0.09	0.97	-1.06
Omega ratio Gain probability vs. loss probability	0.99	1.12	-0.13
Calmar ratio Return relative to maximum drawdown	-0.19	0.77	-0.97
Martin ratio Return relative to average drawdown	-0.39	1.81	-2.20
Data is calculated on a 1-year rolling basis and updated daily. The trend shows the change in the indicator over the past month.

HMC vs. TSLA - Sharpe Ratio Comparison

The current HMC Sharpe Ratio is -0.20, which is lower than the TSLA Sharpe Ratio of 0.50. The chart below compares the historical Sharpe Ratios of HMC and TSLA, calculated using daily returns over the previous 12 months. A higher Sharpe Ratio indicates better risk-adjusted performance relative to the risk-free rate.

Sharpe Ratios by Period

	HMC	TSLA	Difference
Sharpe Ratio (1Y) Calculated over the trailing 1-year period	-0.20	0.50	-0.70
Sharpe Ratio (5Y) Calculated over the trailing 5-year period	-0.02	0.28	-0.30
Sharpe Ratio (10Y) Calculated over the trailing 10-year period	0.13	0.68	-0.55
Sharpe Ratio (All Time) Calculated using the full available price history	0.17	0.73	-0.56

Drawdowns

HMC vs. TSLA - Drawdown Comparison

The maximum HMC drawdown since its inception was -90.46%, which is greater than TSLA's maximum drawdown of -73.63%. Use the drawdown chart below to compare losses from any high point for HMC and TSLA.

Drawdown Indicators

	HMC	TSLA	Difference
Max Drawdown Largest peak-to-trough decline	-90.46%	-73.63%	-16.83%
Max Drawdown (1Y) Largest decline over 1 year	-31.18%	-29.93%	-1.25%
Max Drawdown (3Y) Largest decline over 3 years	-35.41%	-53.77%	+18.36%
Max Drawdown (5Y) Largest decline over 5 years	-35.41%	-73.63%	+38.22%
Max Drawdown (10Y) Largest decline over 10 years	-43.12%	-73.63%	+30.51%
Current Drawdown Current decline from peak	-20.98%	-13.51%	-7.47%
Average Drawdown Average peak-to-trough decline	-36.11%	-22.73%	-13.38%
Ulcer Index Depth and duration of drawdowns from previous peaks	15.29%	12.84%	+2.45%

Volatility

HMC vs. TSLA - Volatility Comparison

The current volatility for Honda Motor Co., Ltd. (HMC) is 10.32%, while Tesla, Inc. (TSLA) has a volatility of 12.12%. This indicates that HMC experiences smaller price fluctuations and is considered to be less risky than TSLA based on this measure. The chart below showcases a comparison of their rolling one-month volatility.

Volatility by Period

	HMC	TSLA	Difference
Volatility (1M) Calculated over the trailing 1-month period	10.32%	12.12%	-1.80%
Volatility (6M) Calculated over the trailing 6-month period	20.56%	27.28%	-6.72%
Volatility (1Y) Calculated over the trailing 1-year period	29.95%	46.36%	-16.41%
Volatility (5Y) Calculated over the trailing 5-year period, annualized	26.81%	58.85%	-32.04%
Volatility (10Y) Calculated over the trailing 10-year period, annualized	25.41%	59.11%	-33.70%

Dividends

HMC vs. TSLA - Dividend Comparison

HMC's dividend yield for the trailing twelve months is around 2.46%, while TSLA has not paid dividends to shareholders.

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%
TSLA Tesla, Inc.	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%	0.00%

Financials

HMC vs. TSLA - Profitability Comparison

The chart below illustrates the profitability comparison between Honda Motor Co., Ltd. and Tesla, Inc. over time, highlighting three key metrics: Gross Profit Margin, Operating Margin, and Net Profit Margin.

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%.

TSLA - Gross Margin

Gross margin is calculated as gross profit divided by revenue. For the three months ending on Jun 2026, Tesla, Inc. reported a gross profit of 4.72B and revenue of 22.39B. Therefore, the gross margin over that period was 21.1%.

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%.

TSLA - Operating Margin

Operating margin is calculated as operating income divided by revenue. For the three months ending on Jun 2026, Tesla, Inc. reported an operating income of 941.00M and revenue of 22.39B, resulting in an operating margin of 4.2%.

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%.

TSLA - Net Margin

Net margin is calculated as net income divided by revenue. For the three months ending on Jun 2026, Tesla, Inc. reported a net income of 491.00M and revenue of 22.39B, resulting in a net margin of 2.2%.

Frequently Asked Questions

Can I hold both HMC and TSLA in my portfolio?

HMC and TSLA have a correlation of 0.29, meaning they provide meaningful diversification benefit when combined. Depending on your allocation goals, holding both could reduce overall portfolio risk.

Which is riskier, HMC or TSLA?

TSLA has higher volatility (12.12%) compared to HMC (10.32%). In terms of maximum drawdown, HMC dropped -90.46% vs TSLA's -73.63%.

Which has better risk-adjusted returns?

TSLA currently has the higher Sharpe Ratio (0.50 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.