The automotive industry is expected to experience a solid recovery with massive government and private investments boosting semiconductor production. So, shares of established auto manufacturers Honda Motor (HMC) and Ford Motor (F) should benefit. But which of these two stocks is a better buy now? Read more to find out.Headquartered in Tokyo, Japan, Honda Motor Co., Ltd. (HMC) develops, manufactures, and distributes motorcycles, automobiles, power products, and other products internationally. It operates through four segments: Motorcycle Business; Automobile Business; Financial Services Business; and Life creation and Other Businesses. In comparison, Ford Motor Company (NYSE:) in Dearborn, Mich., designs, manufactures, markets, and services a range of Ford trucks, cars, sport utility vehicles, electrified vehicles, and Lincoln luxury vehicles worldwide. It operates through three segments: Automotive; Mobility; and Ford Credit.

Even though a global semiconductor supply crunch has negatively impacted the auto manufacturing industry, massive government and private investments to boost semiconductor production should gradually redress the situation. Moreover, traditional automakers might be the biggest beneficiaries based on their broad portfolio of vehicles and market dominance. According to a report by Market Research Future, the automotive industry is expected to grow at a 4.5% CAGR between 2021 – 2028. Therefore, both HMC and F should benefit.

F’s shares have gained 59.7% in price over the past nine months, while HMC has returned 12.4%. Also, F’s 78.6% gains year-to-date are significantly higher than HMC’s 9%. Moreover, F is the clear winner with 28.3% gains versus HMC’s 0.6% returns in terms of the past six months’ performance.

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