GM vs HMC: Which Is the Better Buy in 2026?

Last updated October 2026

Short answer

GM is the larger of the two ($73.67B market cap): the incumbent the market prices for continued execution (5.56x forward earnings, beta 1.40). HMC is the smaller challenger ($44.48B), actually pricier on forward earnings (6.91x): more room to run, but more to prove. The real question is which set of drivers you believe, and whether owning one (or both) leaves you over-concentrated.

GM vs HMC: the tie-breaker metrics

Same yardstick, side by side (as of October 2026). Valuation lined up like this is most meaningful for two names in the same corner of the market, which these are. Figures are approximate; verify before investing.

Metric	GM	HMC	What it tells you
Market cap	$73.67B	$44.48B	Size. The larger name is the incumbent; the smaller has more room to grow and more to prove.
Forward P/E	5.56	6.91	Valuation on next year's expected earnings, the same yardstick for both. Lower is cheaper for that growth; higher means the market is paying up.
Beta	1.40	0.33	Volatility vs the market. Above 1 swings harder than the index; below 1 is steadier. Higher beta means bigger drawdowns to hold through.
Price vs 52-week range	77% of range	98% of range	Where today's price sits between the 52-week low and high. Near the high is momentum with less margin of safety; near the low is out of favor or a discount, depending on why.
Price / book	1.19	0.57	How much you pay over book value. Very high can signal an asset-light, high-return business or a rich price.

Reading it: GM is the cheaper of the two on forward earnings, but cheaper is not the same as better. Pair the valuation with growth (how far the forward P/E sits below the trailing P/E) and risk (beta) before you decide.

Before you buy: how GM and HMC affect your concentration

The metrics above tell you which is the marginally better business. The bigger risk for most people is not picking the slightly worse stock, it is over-concentrating. GM and HMC share themes, so owning both, or adding either to what you already hold, can quietly push a large share of your portfolio into one bet.

This is the part a generic comparison page cannot answer, because it depends on what you own. Connect your brokerage and Walnut shows your real, combined GM and HMC exposure, flags overlap with your existing positions, and tells you if adding one would tip you past a concentration you are comfortable with, read-only by default, with your login staying at your broker. Walnut is not an investment adviser.

What does General Motors Company (GM) do?

General Motors Company is a Detroit-based global automaker that designs, manufactures, and sells trucks, crossovers, cars, and automobile parts under the Chevrolet, GMC, Buick, and Cadillac brands, and provides automotive financing through its GM Financial arm. The overwhelming majority of its profit comes from North America, where full-size pickup trucks (the Chevrolet Silverado and GMC Sierra) and a broad lineup of crossovers and SUVs command strong pricing and margins. GM also operates through equity joint ventures in China, holds a portfolio of electric vehicles built on its Ultium battery platform, and had been developing autonomous-driving technology through Cruise before folding that effort into a leaner in-house driver-assistance program.

Full GM guide

What does Honda Motor (HMC) do?

Honda Motor Co., Ltd. (HMC) is a Japanese manufacturer that makes money across four segments: automobiles, motorcycles, power products, and financial services. Automobiles generate the largest share of revenue, but the motorcycle business is Honda's profit engine and competitive crown jewel: in the fiscal year ended March 31, 2025 it sold a record 20.57 million motorcycles, roughly 40% of the global market, with about 85% of those units coming from Asian markets such as India, Indonesia, Thailand, and Vietnam. Honda earns money by designing, building, and selling these vehicles and engines worldwide, supported by a captive finance arm that helps customers and dealers fund purchases. US investors typically buy Honda through HMC, an American Depositary Receipt that represents shares of the Tokyo-listed company (7267.T), so its dollar price reflects both the underlying stock and the yen-dollar exchange rate.

Full HMC guide

GM vs HMC: how do they differ?

Both fit overlapping themes, but they are not interchangeable. The useful comparison is which set of drivers and risks you want exposure to.

GM drivers: Truck and SUV profit engine plus capital return; EV rightsizing to cut losses.
HMC drivers: Motorcycles carry the company; EV-to-hybrid strategy reset.

Which fits which kind of investor

A faster-growing, richer-valued name usually swings harder, so it suits a longer horizon and a higher tolerance for volatility; a steadier, more cash-generative business suits a more conservative or income-minded investor. The honest test is which set of risks you could hold through a drawdown: GM is deeply cyclical: new-vehicle demand, pricing, and margins can fall sharply in a recession or when interest rates raise the cost of auto loans. For HMC, honda's results are cyclical and rise and fall with global auto demand, so revenue and margins can swing sharply with the economy.

GM or HMC: which should you pick?

Growth-minded investors who believe the theme has years to run tend to accept the richer multiple for more upside; value-minded investors lean toward the cheaper forward earnings and steadier profile. Pick GM if you believe its drivers more; HMC if you believe its. Many investors hold both, but since they share themes, that is a concentrated bet, not diversification. Decide deliberately and check overlap. For the full detail, see the GM and HMC guides.

GM vs HMC: the full fundamentals

GM. GM's trailing P/E of about 38x is distorted because GAAP earnings over the last twelve months still include the Q4 2025 EV realignment loss, while the forward multiple against 2027 consensus EPS of about $15.11 is roughly 5.6x, among the lowest of large US companies. The shares have risen about 48 percent over the past year yet still trade near 0.4x sales and 1.2x book, so the market continues to price GM as a cyclical, tariff-exposed automaker. The October 20 Q3 report, with consensus at about $3.63 of adjusted EPS, is the next data point on whether those earnings estimates hold.

HMC. Reading a Japanese automaker's ADR takes a few adjustments. Honda reports in yen on a fiscal year ending March 31, so dollar figures and the HMC ADR price both move with the yen-dollar exchange rate. One-time items like the EV write-down that hit the January to March 2026 quarter can swing reported profit dramatically, which is why the trailing P/E is negative even though the latest quarter earned ~JPY 451 billion and the forward P/E is only about 7. At ~0.57x book value and a ~3.9% yield, the market is still pricing Honda as a cyclical value name rather than a recovery story, and the next read comes with results expected around November 5, 2026.

Headline figures (approximate, October 2026): GM shows revenue (ttm) ~$185.5 billion (+1.9% yoy in Q2 2026), net income (ttm) ~$1.9 billion (includes Q4 2025 EV charges), margins (ttm) ~10.2% gross, ~3.2% operating, ~1.0% net, eps ~$2.23 GAAP trailing; ~$13.42 2026 and ~$15.11 2027 consensus; HMC shows revenue (ttm) ~JPY 22.5 trillion; latest quarter up ~13.5% year over year, revenue (apr-jun 2026 quarter) ~JPY 6.06 trillion, net income (ttm) ~JPY -170 billion (Jan-Mar 2026 quarter loss of ~JPY 889 billion; Apr-Jun 2026 profit of ~JPY 451 billion), operating margin (ttm) ~8.8%.

The bottom line: GM vs HMC

GM and HMC are related but distinct: same themes, different businesses and risks. Neither wins in the abstract; the right pick is whichever thesis you actually believe, sized so you are not over-concentrated in one theme. Walnut can show your combined GM and HMC exposure against your real portfolio. It is not an investment adviser.

Wondering how GM or HMC fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.

Investing in General Motors Company with AI

Connect the broker you already use and ask Walnut's AI how GM fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.

Does GM fit me?

FAQ

What is the difference between GM and HMC?

Is GM or HMC the better stock?

Neither is universally better. GM is the larger incumbent; HMC is the smaller challenger and looks pricier on forward earnings. Walnut is informational, not investment advice. Compare what each does, the tie-breaker metrics above, and the risks, then decide which fits your thesis and what you already own.

Which is cheaper, GM or HMC?

On forward P/E (as of October 2026), GM trades at 5.56x and HMC at 6.91x, so GM is the cheaper of the two on next year's expected earnings. A lower multiple is not automatically the better buy: a richer valuation can be justified by faster growth, and a lower one can reflect real risk. Weigh the multiple against how fast each business is compounding.

Should you own both GM and HMC?

Because they share themes, owning both concentrates you in that theme. That can be intentional (a focused bet) or accidental (less diversification than it looks). Walnut can show your combined exposure across both, and whether adding either over-concentrates you, before you buy.

What are the risks of GM vs HMC?

GM: GM is deeply cyclical: new-vehicle demand, pricing, and margins can fall sharply in a recession or when interest rates raise the cost of auto loans. Tariffs and trade policy are a two-sided risk that can quickly swing from a rebate benefit to a multi-billion-dollar cost, and the company faces $1.5 billion to $2 billion of expected commodity inflation in 2026. The EV transition remains expensive and uncertain, having already driven more than $7.2 billion of 2025 charges, and a faster-than-expected shift could force further write-downs while a slower one strands prior investment. GM also carries meaningful exposure to a competitive and price-pressured China market, ongoing labor-cost dynamics with the UAW, and the reputational and financial tail risk of vehicle recalls and warranty claims. Balance-sheet leverage is also part of the picture: GM carries about $129 billion of debt (much of it funding GM Financial's loan book) against roughly $25 billion of cash, so a deterioration in auto-credit performance would hit both the lending arm and the equity. HMC: Honda's results are cyclical and rise and fall with global auto demand, so revenue and margins can swing sharply with the economy. Because HMC is a yen-denominated business traded as a dollar ADR, currency movements in the yen-dollar rate directly affect both reported earnings and the ADR price. US tariffs on imported vehicles and components raise costs and were flagged as a multi-hundred-billion-yen headwind. Competition is intensifying, especially in China where fast-moving local EV makers and a shift toward software features are eroding incumbents, and across the broader EV transition. The electrification pivot carries heavy capital and write-down risk, illustrated by the up-to-$15.7 billion charge and the ~JPY 889 billion quarterly loss in early 2026. Debt of ~JPY 14.4 trillion (much of it tied to the finance arm) sits against ~JPY 5.5 trillion of cash. After a ~20% three-month rally the ADR sits just above the ~$33 average analyst target, so the November report carries more expectation than it did in spring.

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Walnut is informational, not investment advice. This page is descriptive and not a recommendation to buy or sell GM or HMC; figures are approximate and dated (as of October 2026). Verify current data before investing.