Ford Motor (NYSE:F) and Its Competitors Critical Analysis

Ford Motor (NYSE: F) is one of 30 public companies in the “Motor vehicles & car bodies” industry, but how does it compare to its competitors? We will compare Ford Motor to related businesses based on the strength of its analyst recommendations, valuation, dividends, earnings, risk, profitability and institutional ownership.

Risk and Volatility

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Ford Motor has a beta of 1.05, meaning that its stock price is 5% more volatile than the S&P 500. Comparatively, Ford Motor’s competitors have a beta of 1.00, meaning that their average stock price is 0% more volatile than the S&P 500.

Institutional and Insider Ownership

56.6% of Ford Motor shares are owned by institutional investors. Comparatively, 65.8% of shares of all “Motor vehicles & car bodies” companies are owned by institutional investors. 1.0% of Ford Motor shares are owned by company insiders. Comparatively, 8.5% of shares of all “Motor vehicles & car bodies” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Valuation and Earnings

This table compares Ford Motor and its competitors top-line revenue, earnings per share (EPS) and valuation.

Gross Revenue Net Income Price/Earnings Ratio
Ford Motor $156.78 billion $7.60 billion 6.16
Ford Motor Competitors $62.83 billion $2.64 billion 16.65

Ford Motor has higher revenue and earnings than its competitors. Ford Motor is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Analyst Recommendations

This is a breakdown of current ratings and recommmendations for Ford Motor and its competitors, as provided by MarketBeat.com.

Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score
Ford Motor 1 14 5 0 2.20
Ford Motor Competitors 441 1281 1638 110 2.41

Ford Motor currently has a consensus target price of $12.27, indicating a potential upside of 11.98%. As a group, “Motor vehicles & car bodies” companies have a potential upside of 7.25%. Given Ford Motor’s higher probable upside, equities research analysts clearly believe Ford Motor is more favorable than its competitors.

Profitability

This table compares Ford Motor and its competitors’ net margins, return on equity and return on assets.

Net Margins Return on Equity Return on Assets
Ford Motor 4.85% 21.71% 2.84%
Ford Motor Competitors -14.14% -0.31% -3.84%

Dividends

Ford Motor pays an annual dividend of $0.60 per share and has a dividend yield of 5.5%. Ford Motor pays out 33.7% of its earnings in the form of a dividend. As a group, “Motor vehicles & car bodies” companies pay a dividend yield of 1.4% and pay out 20.2% of their earnings in the form of a dividend.

Summary

Ford Motor beats its competitors on 8 of the 15 factors compared.

Ford Motor Company Profile

Ford Motor Company is a global automotive and mobility company. The Company’s business includes designing, manufacturing, marketing, and servicing a full line of Ford cars, trucks, and sport utility vehicles (SUVs), as well as Lincoln luxury vehicles. The Company operates in four segments: Automotive, Financial Services, Ford Smart Mobility LLC, and Central Treasury Operations. The Automotive segment primarily includes the sale of Ford and Lincoln brand vehicles, service parts, and accessories across the world. The Financial Services segment primarily includes its vehicle-related financing and leasing activities at Ford Motor Credit Company LLC. Ford Smart Mobility LLC is a subsidiary formed to design, build, grow, and invest in emerging mobility services. The Central Treasury Operations segment is primarily engaged in decision making for investments, risk management activities, and providing financing for the Automotive segment.

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