are usually younger companies
often do not issue dividends as there is resource constraintsmay be more risky as the company is yet to prove its business model or operationsexample of value stockhonda motor hmc produces and sells outboard engines power generators lawn mowers and automobiles all over the world because the company has a less comprehensive vehicle lineup compared to rivals it may fly under the radar with some investors for instance honda does not offer a huge suv or a full sized truck as a result honda is vulnerable to losing market share if consumer preferences move further in favor of those larger vehicles however the manufacturer also possesses other traits that might be beneficial in the long run one is that honda has a reputation for quality particularly with regard to fuel efficient vehicles the leadership group is skilled at organizing the company s is currently embarking on a cost cutting plan to decrease expenses in addition honda aims to have 100 of their vehicles be electric in north america by 2040 on the stock side as of may 2023 honda s stock had a p e ratio of 8 57 this is notably less than rival companies such as toyota who boasts a p e ratio as of may 5 2023 of 10 14 also honda boasts a stronger dividend yield as of may 2023 honda s dividend yield was 2 87 