General Electric vs General Motors Which Is Stronger?

General Electric and General Motors are two of the most well-known companies in the United States, with longstanding histories in the industrial and automotive sectors, respectively. Both companies have seen their stocks fluctuate over the years, with General Electric facing challenges in recent years due to restructuring efforts and debt issues, while General Motors has experienced ups and downs due to changes in consumer preferences and global economic conditions. Investors may consider factors such as financial performance, market trends, and strategic initiatives when evaluating these two stocks for investment opportunities.

General Electric or General Motors?

When comparing General Electric and General Motors, 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 General Electric and General Motors.

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. General Electric has a dividend yield of 0.55%, while General Motors has a dividend yield of 0.91%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. General Electric reports a 5-year dividend growth of -2.87% year and a payout ratio of 12.65%. On the other hand, General Motors reports a 5-year dividend growth of -25.03% year and a payout ratio of 5.69%.

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 General Electric P/E ratio at 29.05 and General Motors's P/E ratio at 5.30. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. General Electric P/B ratio is 9.61 while General Motors's P/B ratio is 0.83.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, General Electric has seen a 5-year revenue growth of -0.44%, while General Motors's is 0.21%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with General Electric's ROE at 26.39% and General Motors's ROE at 16.37%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $165.54 for General Electric and $51.91 for General Motors. Over the past year, General Electric's prices ranged from $97.23 to $194.80, with a yearly change of 100.35%. General Motors's prices fluctuated between $34.32 and $61.24, with a yearly change of 78.44%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.