Ford Motor vs Starbucks Which Is More Reliable?

Investors looking to diversify their portfolio may consider comparing the performance of two well-known companies, Ford Motor Company and Starbucks Corporation. Ford Motor is a major player in the automotive industry, with a long history of producing popular vehicles. On the other hand, Starbucks is a global leader in the coffee and beverage market, with a strong brand presence and loyal customer base. Analyzing the stock performance of these two companies can provide insights into the stability and growth potential of each investment.

Ford Motor or Starbucks?

When comparing Ford Motor and Starbucks, 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 Starbucks.

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 7.42%, while Starbucks has a dividend yield of 2.32%. 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, Starbucks reports a 5-year dividend growth of 10.35% year and a payout ratio of 68.73%.

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 11.84 and Starbucks's P/E ratio at 30.27. 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 0.94 while Starbucks's P/B ratio is -15.28.

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 Starbucks's is 0.75%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ford Motor's ROE at 8.13% and Starbucks's ROE at -46.35%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $10.42 for Ford Motor and $98.44 for Starbucks. Over the past year, Ford Motor's prices ranged from $9.49 to $14.85, with a yearly change of 56.48%. Starbucks's prices fluctuated between $71.55 and $103.32, with a yearly change of 44.40%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.