Ford vs. GM Stock: Which Is a Better Way to Make Money?

Ford and General Motors are two seemingly similar companies — both storied and part of the American fabric. They are also similar in size, with market caps around $50 billion. However, when it comes to their stocks and their trajectories, there are some differences.

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Here is how the companies compare:

GM as of May 6, 2024

  • Stock price: $45.47
  • Market cap: $51.92 billion
  • Year-to-date: 26.13%
  • Past year: 35.2%
  • Past month: 2.64%

CFRA Research has a Hold rating as of May 4 on the stock, citing both a fair valuation and some risks, namely when it comes to the company’s electric vehicle (EV) growth plans and increased costs under the new United Auto Workers (UAW) labor agreement signed in November 2023, according to a research note.

“We have doubts about GM’s production ramp-up and ultimate demand for its EV models amid signs of market oversaturation,” CFRA equity analyst Garrett Nelson wrote in the note. Nelson also noted that GM said it would moderate its EV production ramp-up for a variety of reasons, which he views as prudent.

Ford as of May 6, 2024

  • Market cap: $50.12 billion
  • Stock price: $12.56
  • Year-to-date: 3.25%
  • Past year: 4.45%
  • Past month: -6.38%

CFRA also has a Hold rating on Ford’s stock, reflecting the fact that “the combination of higher labor costs, ongoing pressure on new vehicle prices, and more difficult volume comps in 2024 are likely to weigh on near-term profitability.”

Nelson wrote in the May 4 note that  Ford’s vehicle portfolio has more momentum than most peers from sales of the Mustang Mach-E EV, Bronco, F-150 Lightning pickup EV, Maverick pickup and E-Transit commercial van.

“We also consider Ford’s EV strategy the most prudent of the major U.S. automakers,” he added.

CFRA added that it expect revenues to increase by 5% in 2024 and remain flat in 2025, after increases of 11% in 2023 and 18% in 2022.

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“We remain confident in CEO Jim Farley’s ability to drive shareholder value over the long term,” Nelson wrote, adding that while Ford ranks as the second best-selling U.S. EV maker,  “it’s a distant second behind Tesla.”

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This article originally appeared on Ford vs. GM Stock: Which Is a Better Way to Make Money?

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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