Ford Motor (NYSE:F) and Fiat Chrysler Automobiles (NYSE:FCAU) are both large-cap auto/tires/trucks companies, but which is the better investment? We will compare the two companies based on the strength of their analyst recommendations, risk, profitability, dividends, valuation, institutional ownership and earnings.

Insider and Institutional Ownership

54.2% of Ford Motor shares are owned by institutional investors. Comparatively, 26.0% of Fiat Chrysler Automobiles shares are owned by institutional investors. 1.0% of Ford Motor shares are owned by company insiders. Strong institutional ownership is an indication that endowments, large money managers and hedge funds believe a stock will outperform the market over the long term.

Dividends

Ford Motor pays an annual dividend of $0.60 per share and has a dividend yield of 6.9%. Fiat Chrysler Automobiles does not pay a dividend. Ford Motor pays out 33.7% of its earnings in the form of a dividend.

Analyst Ratings

This is a breakdown of recent ratings and recommmendations for Ford Motor and Fiat Chrysler Automobiles, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ford Motor 1 10 4 0 2.20
Fiat Chrysler Automobiles 0 5 7 0 2.58

Ford Motor currently has a consensus price target of $11.90, suggesting a potential upside of 37.73%. Fiat Chrysler Automobiles has a consensus price target of $21.24, suggesting a potential upside of 31.51%. Given Ford Motor’s higher probable upside, analysts clearly believe Ford Motor is more favorable than Fiat Chrysler Automobiles.

Volatility and Risk

Ford Motor has a beta of 0.86, meaning that its share price is 14% less volatile than the S&P 500. Comparatively, Fiat Chrysler Automobiles has a beta of 1.9, meaning that its share price is 90% more volatile than the S&P 500.

Valuation & Earnings

This table compares Ford Motor and Fiat Chrysler Automobiles’ top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio
Ford Motor $156.78 billion 0.22 $7.60 billion $1.78 4.85
Fiat Chrysler Automobiles $125.31 billion 0.25 $3.95 billion $2.72 5.94

Ford Motor has higher revenue and earnings than Fiat Chrysler Automobiles. Ford Motor is trading at a lower price-to-earnings ratio than Fiat Chrysler Automobiles, indicating that it is currently the more affordable of the two stocks.

Profitability

This table compares Ford Motor and Fiat Chrysler Automobiles’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ford Motor 4.27% 17.43% 2.38%
Fiat Chrysler Automobiles 3.14% 19.01% 4.20%

Summary

Fiat Chrysler Automobiles beats Ford Motor on 9 of the 16 factors compared between the two stocks.

Ford Motor Company Profile

Ford Motor Company designs, manufactures, markets, and services a range of Ford cars, trucks, sport utility vehicles, and electrified vehicles; and Lincoln luxury vehicles worldwide. Its Automotive segment sells Ford and Lincoln vehicles, service parts, and accessories through distributors and dealers, as well as through dealerships to fleet customers, including commercial fleet customers, daily rental car companies, and governments. The company's Financial Services segment offers various automotive financing products to and through automotive dealers. Its financing products comprise retail installment sale contracts for new and used vehicles; and direct financing leases for new vehicles to retail and commercial customers, such as leasing companies, government entities, daily rental companies, and fleet customers. This segment also offers wholesale loans to dealers to finance the purchase of vehicle inventory; and loans to dealers to finance working capital and improvement of dealership facilities, purchase dealership real estate, and other dealer vehicle programs. The company has a strategic collaboration with Panasonic Corporation of North America and Qualcomm Technologies. Ford Motor Company was founded in 1903 and is based in Dearborn, Michigan.

Fiat Chrysler Automobiles Company Profile

Fiat Chrysler Automobiles N.V., together with its subsidiaries, designs, engineers, manufactures, distributes, and sells vehicles, components, and production systems. The company operates through six segments: NAFTA, LATAM, APAC, EMEA, Maserati, and Components. It provides passenger cars, trucks, and light commercial vehicles under the Jeep, Ram, Dodge, Chrysler, Fiat, Fiat Professional, Alfa Romeo, and Abarth brands; and luxury vehicles under the Maserati brand, as well as related service parts and accessories, and service contracts under the Mopar brand. The company also produces and sells lighting components, body control units, suspensions, shock absorbers, electronic systems, exhaust systems, powertrain components, engine control units, plastic molding components, and after-market products under the Magneti Marelli brand name. In addition, it offers cast iron components for engines, gearboxes, transmissions and suspension systems, aluminum cylinder heads, and engine blocks under the Teksid brand; and designs and produces industrial automation systems and related products for the automotive industry under the Comau brand name. Further, the company provides retail and dealer financings, and leasing and rental services; and factoring services. The company sells its products directly, or through distributors and dealers in approximately 140 countries. The company was formerly known as Fiat S.p.A. and changed its name to Fiat Chrysler Automobiles N.V. in October 2014. Fiat Chrysler Automobiles N.V. was founded in 1899 and is based in London, the United Kingdom.

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