Ford Motor vs Stellantis

Ford Motor and Stellantis are two major players in the automotive industry, each with a long history of producing vehicles that have captured the hearts of consumers worldwide. When it comes to their stocks, investors often compare the performance of these companies to determine which is the better investment. Ford Motor, a well-established American automaker, has a strong presence in the market, while Stellantis, a newer company formed through a merger, is making moves to solidify its position in the industry. This comparison of Ford Motor vs Stellantis stocks will analyze various factors such as financial performance, market share, and future growth potential to help investors make informed decisions about their investments.

Ford Motor or Stellantis?

When comparing Ford Motor and Stellantis, 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 Stellantis.

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 7.2%, while Stellantis has a dividend yield of 12.79%. 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 81.49%. On the other hand, Stellantis reports a 5-year dividend growth of 0.00% year and a payout ratio of 34.98%.

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 11.26 and Stellantis's P/E ratio at 2.62. 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 0.99 while Stellantis's P/B ratio is 0.43.

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 Stellantis's is -0.14%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Ford Motor's ROE at 8.85% and Stellantis's ROE at 16.27%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $10.82 for Ford Motor and $12.89 for Stellantis. Over the past year, Ford Motor's prices ranged from $9.49 to $14.85, with a yearly change of 56.48%. Stellantis's prices fluctuated between $12.74 and $29.51, with a yearly change of 131.63%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.