Critical Review: NWTN (NASDAQ:NWTN) versus Honda Motor (NYSE:HMC)

Earnings and Valuation

This table compares Honda Motor and NWTN”s top-line revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Honda Motor	$21,617.02 billion	0.00	$7.64 billion	$4.05	6.18
NWTN	$583,000.00	593.97	-$40.72 million	N/A	N/A

Honda Motor has higher revenue and earnings than NWTN.

Profitability

This table compares Honda Motor and NWTN’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Honda Motor	4.53%	7.53%	3.31%
NWTN	N/A	N/A	N/A

Institutional and Insider Ownership

5.3% of Honda Motor shares are held by institutional investors. Comparatively, 0.2% of NWTN shares are held by institutional investors. 0.0% of Honda Motor shares are held by insiders. Comparatively, 46.1% of NWTN shares are held by insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Volatility and Risk

Honda Motor has a beta of 0.62, suggesting that its stock price is 38% less volatile than the S&P 500. Comparatively, NWTN has a beta of -0.16, suggesting that its stock price is 116% less volatile than the S&P 500.

Summary

Honda Motor beats NWTN on 7 of the 9 factors compared between the two stocks.

About Honda Motor

Honda Motor Co., Ltd. develops, manufactures, and distributes motorcycles, automobiles, power, and other products in Japan, North America, Europe, Asia, and internationally. It operates through four segments: Motorcycle Business, Automobile Business, Financial Services Business, and Power Product and Other Businesses. The Motorcycle Business segment produces motorcycles, including sports, business, and commuter models; and various off-road vehicles, such as all-terrain vehicles and side-by-sides. The Automobile Business segment offers passenger cars, light trucks, and mini vehicles. The Financial Services Business segment provides various financial services, including retail lending and leasing services to customers, as well as wholesale financing services to dealers. The Power Product and Other Businesses manufactures and sells power products, such as general purpose engines, lawn mowers, generators, water pumps, brush cutters, tillers, outboard marine engines, and snow throwers. This segment also offers HondaJet aircraft. The company also sells spare parts; and provides after-sale services through retail dealers directly, as well as through independent distributors and licensees. Honda Motor Co., Ltd. was founded in 1946 and is headquartered in Tokyo, Japan.

About NWTN

NWTN Inc. operates as a smart passenger vehicle company, provides passenger-centric mobility and green energy solutions in the United States, the United Arab Emirates, and Mainland China. The company develops electric vehicles, including Supersport coupe; and smart passenger vehicles, such as MUSE and ADA. It integrates design, life-style personalization, IoT connectivity, autonomous driving technology, and green energy eco-systems for future mobility solutions. The company also involved in the wholesale and retail of vehicles; and provision of business management, operations, commercialization, as well as design and technology development services. NWTN Inc. was founded in 2016 and is headquartered in Dubai, the United Arab Emirates.