Faraday Future Intelligent Electric (NASDAQ:FFAI – Get Free Report) and Honda Motor (NYSE:HMC – Get Free Report) are both consumer discretionary companies, but which is the superior business? We will contrast the two businesses based on the strength of their risk, dividends, earnings, valuation, institutional ownership, profitability and analyst recommendations.
Insider & Institutional Ownership
71.7% of Faraday Future Intelligent Electric shares are owned by institutional investors. Comparatively, 5.3% of Honda Motor shares are owned by institutional investors. 0.3% of Faraday Future Intelligent Electric shares are owned by company insiders. Comparatively, 0.0% of Honda Motor shares are owned by company insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Profitability
This table compares Faraday Future Intelligent Electric and Honda Motor’s net margins, return on equity and return on assets.
| Net Margins | Return on Equity | Return on Assets | |
| Faraday Future Intelligent Electric | -21,837.97% | -2,531.03% | -100.65% |
| Honda Motor | -0.73% | -1.30% | -0.49% |
Risk & Volatility
Analyst Ratings
This is a breakdown of recent recommendations and price targets for Faraday Future Intelligent Electric and Honda Motor, as reported by MarketBeat.com.
| Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
| Faraday Future Intelligent Electric | 1 | 1 | 1 | 0 | 2.00 |
| Honda Motor | 2 | 1 | 0 | 2 | 2.40 |
Faraday Future Intelligent Electric presently has a consensus price target of $750.00, indicating a potential upside of 42,513.64%. Honda Motor has a consensus price target of $25.00, indicating a potential downside of 22.42%. Given Faraday Future Intelligent Electric’s higher probable upside, equities analysts plainly believe Faraday Future Intelligent Electric is more favorable than Honda Motor.
Earnings & Valuation
This table compares Faraday Future Intelligent Electric and Honda Motor”s top-line revenue, earnings per share (EPS) and valuation.
| Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
| Faraday Future Intelligent Electric | $540,000.00 | 12.58 | -$390.70 million | ($223.10) | -0.01 |
| Honda Motor | $144.79 billion | 0.35 | -$2.80 billion | ($0.70) | -46.04 |
Faraday Future Intelligent Electric has higher earnings, but lower revenue than Honda Motor. Honda Motor is trading at a lower price-to-earnings ratio than Faraday Future Intelligent Electric, indicating that it is currently the more affordable of the two stocks.
Summary
Faraday Future Intelligent Electric beats Honda Motor on 8 of the 15 factors compared between the two stocks.
About Faraday Future Intelligent Electric
Faraday Future Intelligent Electric Inc. engages in the design, development, manufacture, engineering, sale, and distribution of electric vehicles and related products in the United States and internationally. The company was founded in 2014 and is headquartered in Gardena, California.
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.
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