Ford Motor vs Rivian Automotive Which Should You Buy?

Ford Motor Company and Rivian Automotive are two major players in the automotive industry, with both companies focusing on innovation and sustainability in their respective products. Ford Motor Company, a well-established and traditional automaker, has been investing heavily in electric vehicle technology in recent years. On the other hand, Rivian Automotive is a newer player in the market, known for its all-electric pickup trucks and SUVs. Both companies have seen fluctuations in their stock prices, making them an interesting comparison for investors looking to capitalize on the electric vehicle trend.

Ford Motor or Rivian Automotive?

When comparing Ford Motor and Rivian Automotive, 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 Rivian Automotive.

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 Rivian Automotive 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, Rivian Automotive 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 12.65 and Rivian Automotive's P/E ratio at -2.03. 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 Rivian Automotive's P/B ratio is 1.90.

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 Rivian Automotive's is 0.00%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ford Motor's ROE at 8.13% and Rivian Automotive's ROE at -73.83%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $11.02 for Ford Motor and $10.25 for Rivian Automotive. Over the past year, Ford Motor's prices ranged from $9.49 to $14.85, with a yearly change of 56.48%. Rivian Automotive's prices fluctuated between $8.26 and $24.61, with a yearly change of 198.00%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.