General Motors vs Ford Motor Which Is More Reliable?

General Motors and Ford Motor are two of the most prominent and long-standing automobile manufacturers in the United States. The rivalry between the two companies dates back decades, with each vying for market dominance and investor confidence. Both companies have faced their own set of challenges in recent years, including economic downturns, shifts in consumer preferences, and the rise of electric vehicles. Investors closely follow the performance of General Motors and Ford Motor stocks, comparing financial metrics, market trends, and corporate strategies to determine which company may offer the best opportunity for growth and profitability.

General Motors or Ford Motor?

When comparing General Motors and Ford Motor, 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 Motors and Ford Motor.

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 Motors has a dividend yield of 0.99%, while Ford Motor has a dividend yield of 8.4%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. General Motors reports a 5-year dividend growth of -25.03% year and a payout ratio of 5.69%. On the other hand, Ford Motor reports a 5-year dividend growth of 11.36% year and a payout ratio of 88.50%.

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 Motors P/E ratio at 5.81 and Ford Motor's P/E ratio at 12.47. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. General Motors P/B ratio is 0.91 while Ford Motor's P/B ratio is 0.99.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, General Motors has seen a 5-year revenue growth of 0.21%, while Ford Motor's is 0.09%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with General Motors's ROE at 16.37% and Ford Motor's ROE at 8.13%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are $57.18 for General Motors and $11.02 for Ford Motor. Over the past year, General Motors's prices ranged from $27.42 to $59.39, with a yearly change of 116.59%. Ford Motor's prices fluctuated between $9.49 and $14.85, with a yearly change of 56.48%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.