Mercedes-Benz vs Ford Motor Which Offers More Value?

Mercedes-Benz and Ford Motor are two of the most prominent names in the automotive industry, with a long history of producing high-quality vehicles that cater to different market segments. Both companies have a global presence and a strong brand reputation, but their stocks have performed differently in recent years. While Mercedes-Benz is known for its luxury vehicles and higher profit margins, Ford Motor is focused on producing a wide range of vehicles at more affordable price points. Investors interested in the automotive sector may find opportunities in both stocks, depending on their investment goals and risk tolerance.

Mercedes-Benz or Ford Motor?

When comparing Mercedes-Benz 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 Mercedes-Benz 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. Mercedes-Benz has a dividend yield of 10.18%, while Ford Motor has a dividend yield of 8.28%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Mercedes-Benz reports a 5-year dividend growth of 5.20% year and a payout ratio of 50.61%. 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 Mercedes-Benz P/E ratio at 5.06 and Ford Motor's P/E ratio at 12.65. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Mercedes-Benz P/B ratio is 0.61 while Ford Motor's P/B ratio is 1.01.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Mercedes-Benz has seen a 5-year revenue growth of -0.08%, while Ford Motor's is 0.09%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Mercedes-Benz's ROE at 11.79% 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 $56.08 for Mercedes-Benz and $11.02 for Ford Motor. Over the past year, Mercedes-Benz's prices ranged from $55.60 to $83.50, with a yearly change of 50.18%. 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.