Deere & Company vs Ford Motor Which Is Superior?

Deere & Company and Ford Motor Company are both iconic American corporations with longstanding histories in the manufacturing sector. Deere is known for its agricultural equipment and machinery, while Ford is renowned for its automobiles and trucks. Both companies have faced unique challenges and opportunities in recent years, leading to fluctuations in their respective stock prices. This comparison will delve into the financial performance and market trends of Deere & Company and Ford Motor Company to provide insights for potential investors.

Deere & Company or Ford Motor?

When comparing Deere & Company and Ford Motor, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between Deere & Company and Ford Motor.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. Deere & Company has a dividend yield of 1.34%, while Ford Motor has a dividend yield of 7.51%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Deere & Company reports a 5-year dividend growth of 14.19% year and a payout ratio of 19.02%. On the other hand, Ford Motor reports a 5-year dividend growth of 11.36% year and a payout ratio of 88.50%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with Deere & Company P/E ratio at 14.67 and Ford Motor's P/E ratio at 11.71. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Deere & Company P/B ratio is 5.23 while Ford Motor's P/B ratio is 0.93.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Deere & Company has seen a 5-year revenue growth of 0.85%, while Ford Motor's is 0.09%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Deere & Company's ROE at 36.71% and Ford Motor's ROE at 8.13%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $438.46 for Deere & Company and $10.35 for Ford Motor. Over the past year, Deere & Company's prices ranged from $340.20 to $469.39, with a yearly change of 37.97%. Ford Motor's prices fluctuated between $9.49 and $14.85, with a yearly change of 56.48%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.