Ford Motor vs Renault Which Is More Lucrative?

Ford Motor Company and Renault are both stalwarts in the automotive industry, known for producing popular and reliable vehicles worldwide. However, their respective stocks have experienced varying degrees of performance in recent years. While Ford has faced challenges with declining sales and profitability, Renault has seen a resurgence in demand for its vehicles. Investors are closely monitoring these dynamics to determine which company may offer better investment opportunities in the future.

Ford Motor or Renault?

When comparing Ford Motor and Renault, 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 Renault.

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 7.77%, while Renault has a dividend yield of 3.99%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Ford Motor reports a 5-year dividend growth of -3.43% year and a payout ratio of 53.04%. On the other hand, Renault reports a 5-year dividend growth of 0.00% year and a payout ratio of 38.56%.

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 6.53 and Renault's P/E ratio at 9.66. 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 0.86 while Renault's P/B ratio is 0.44.

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 0.18%, while Renault's is 3.51%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ford Motor's ROE at 13.39% and Renault's ROE at 4.64%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $9.20 for Ford Motor and $10.50 for Renault. Over the past year, Ford Motor's prices ranged from $9.06 to $14.85, with a yearly change of 63.91%. Renault's prices fluctuated between $7.82 and $11.72, with a yearly change of 49.85%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.