Ford Motor vs Lucid Which Is a Smarter Choice?

Ford Motor Company and Lucid Motors are two prominent players in the automotive industry, each with its own distinct position in the market. Ford, a traditional giant in the industry with a long history of producing reliable vehicles, has recently faced challenges adapting to the rapidly changing automotive landscape. In contrast, Lucid, a newer player in the market, has been causing a stir with its innovative electric vehicles and cutting-edge technology. This comparison between the two stocks offers investors a glimpse into the past and future of the automotive industry.

Ford Motor or Lucid?

When comparing Ford Motor and Lucid, 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 Lucid.

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 7.51%, while Lucid has a dividend yield of -%. 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, Lucid reports a 5-year dividend growth of 0.00% year and a payout ratio of 0.00%.

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 11.71 and Lucid's P/E ratio at -2.02. 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 0.93 while Lucid's P/B ratio is 2.23.

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 Lucid's is 0.55%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ford Motor's ROE at 8.13% and Lucid's ROE at -72.28%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $10.32 for Ford Motor and $2.45 for Lucid. Over the past year, Ford Motor's prices ranged from $9.49 to $14.85, with a yearly change of 56.48%. Lucid's prices fluctuated between $1.93 and $5.26, with a yearly change of 172.54%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.