Ferrari vs Ford Motor Which Performs Better?

Ferrari and Ford Motor are two iconic companies in the automotive industry with a rich history and global presence. Both companies have a strong reputation for producing high-quality vehicles that resonate with consumers around the world. While Ferrari is known for its luxury and performance vehicles, Ford Motor is renowned for its mass-market cars and trucks. Investors may be interested in comparing the stocks of these two companies to determine which may offer better long-term growth potential.

Ferrari or Ford Motor?

When comparing Ferrari 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 Ferrari 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. Ferrari has a dividend yield of 0.54%, 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. Ferrari reports a 5-year dividend growth of 22.88% year and a payout ratio of 1.80%. 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 Ferrari P/E ratio at 54.18 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. Ferrari P/B ratio is 23.24 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, Ferrari has seen a 5-year revenue growth of 0.81%, while Ford Motor's is 0.09%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ferrari's ROE at 44.82% 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 $450.76 for Ferrari and $10.32 for Ford Motor. Over the past year, Ferrari's prices ranged from $330.15 to $498.23, with a yearly change of 50.91%. 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.