Stellantis vs Ford Motor Which Should You Buy?

Stellantis and Ford Motor stocks are two prominent players in the automotive industry, each with a long-standing history and global presence. Stellantis, formed from the merger of Fiat Chrysler Automobiles and PSA Group, boasts a diverse portfolio of brands including Jeep, Dodge, and Peugeot. Ford Motor, on the other hand, is one of the oldest automakers in the US, known for iconic models like the Mustang and F-150. Both companies face unique challenges and opportunities in a constantly evolving market, making their stocks a subject of keen interest for investors.

Stellantis or Ford Motor?

When comparing Stellantis 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 Stellantis 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. Stellantis has a dividend yield of 11.83%, while Ford Motor has a dividend yield of 7.51%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. Stellantis reports a 5-year dividend growth of 0.00% year and a payout ratio of 34.98%. 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 Stellantis P/E ratio at 2.93 and Ford Motor's P/E ratio at 11.71. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. Stellantis P/B ratio is 0.48 while Ford Motor's P/B ratio is 0.93.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, Stellantis has seen a 5-year revenue growth of -0.12%, while Ford Motor's is 0.09%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with Stellantis's ROE at 16.27% 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 $13.85 for Stellantis and $10.32 for Ford Motor. Over the past year, Stellantis's prices ranged from $12.12 to $29.51, with a yearly change of 143.48%. 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.