Ford Motor vs Ferrari Which Is More Profitable?

Ford Motor and Ferrari are two iconic automotive companies that have been competing in the market for decades. Both companies have their loyal followers and investors who are constantly watching their stocks. Ford Motor, known for its mass-produced vehicles, has a long history of ups and downs in the stock market. On the other hand, Ferrari, with its high-performance sports cars, is a luxury brand that has been a favorite among investors. Let's take a closer look at the stocks of these two automotive giants and how they have performed in the market.

Ford Motor or Ferrari?

When comparing Ford Motor and Ferrari, 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 Ford Motor and Ferrari.

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. Ford Motor has a dividend yield of 8.28%, while Ferrari has a dividend yield of 0.58%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Ford Motor reports a 5-year dividend growth of 11.36% year and a payout ratio of 88.50%. On the other hand, Ferrari reports a 5-year dividend growth of 22.88% year and a payout ratio of 31.34%.

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 Ford Motor P/E ratio at 12.65 and Ferrari's P/E ratio at 55.09. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Ford Motor P/B ratio is 1.01 while Ferrari's P/B ratio is 24.64.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Ford Motor has seen a 5-year revenue growth of 0.09%, while Ferrari's is 0.82%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ford Motor's ROE at 8.13% and Ferrari's ROE at 45.21%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.02 for Ford Motor and $451.82 for Ferrari. Over the past year, Ford Motor's prices ranged from $9.49 to $14.85, with a yearly change of 56.48%. Ferrari's prices fluctuated between $330.15 and $498.23, with a yearly change of 50.91%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.