GM vs TM: How General Motors Company and Toyota Motor Corporation Compare (2026)

Same yardstick, side by side (as of August 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.

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.

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 TM 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 TM 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.

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

Toyota Motor Corporation is the world's largest automaker by unit sales, producing vehicles under the Toyota and Lexus brands along with Daihatsu and Hino. Its business spans three broad areas: automotive (passenger cars, light trucks, commercial vehicles, and parts), financial services through Toyota Financial Services, and a smaller all-other segment covering ventures like housing and telematics. The automotive business is the engine of results, but the finance arm adds a steady, lending-driven profit stream. Toyota's signature approach is its multi-pathway strategy, offering hybrids, plug-in hybrids, battery-electric vehicles, and hydrogen fuel-cell models rather than committing to a single technology, a stance that helped it stay number one globally with record annual volume.

Full TM guide

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.
• TM drivers: Hybrid-led multi-pathway strategy; Scale, reliability, and brand strength.

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 TM, the biggest risks are macro and structural.

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; TM 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 TM guides.

GM. GM's trailing P/E of roughly 31x is misleading because 2025 GAAP net income of about $2.7 billion was suppressed by more than $7.2 billion of one-time EV realignment charges; on a forward basis against 2026 adjusted EPS guidance of about $11.50 to $13.50, the multiple compresses to roughly 6x, one of the lowest among large-cap US companies. That gap reflects a market that treats GM as a deeply cyclical, tariff-exposed automaker rather than a growth compounder. Heavy buybacks (a new $6.0 billion authorization) and a raised dividend show management returning capital while the shares trade at a low earnings multiple.

TM. These figures are approximate, drawn from Toyota's fiscal year ending March 2026, and translated from yen, so they will differ from a US calendar-year view and move with the yen-dollar rate. Treat all numbers as rough and confirm current revenue, income, market cap, and any multiples or dividend with a live quote before making decisions.

Headline figures (approximate, JULY 2026): GM shows revenue (fy 2025) ~$185 billion, net income (fy 2025) ~$2.7 billion (after ~$7.2 billion of special charges), ebit-adjusted (fy 2025) ~$12.7 billion, 2026 ebit-adjusted guidance ~$13.5 billion to $15.5 billion (~$11.50 to $13.50 adjusted EPS); TM shows net revenue (fy ended mar 2026) ~50.7 trillion yen (~$336 billion), up ~5.5% year over year, operating income (fy ended mar 2026) ~3.77 trillion yen, down ~21.5%, with US tariffs a ~1.38 trillion yen headwind, consolidated vehicle sales ~9.6 million units for the fiscal year, fy2027 guidance Operating income guided to ~3.0 trillion yen, down again on tariffs and geopolitical uncertainty.

GM and TM 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 TM exposure against your real portfolio. It is not an investment adviser.