Ford isn't experiencing a lot of revenue and earnings growth, but its shares are trading at a very inexpensive valuation. Tesla is the polar opposite -- its business is growing fast, and its shares are very expensive. Ford Valuation Ford, the lower-growth option, is still trading at a very inexpensive valuation, despite hefty gains in 2021:
Full Answer
Is Ford's stock cheaper than Tesla's?
Why has Ford's stock price never been as high as Tesla's? Tesla claim (with good justification) that they can double in size every 18 months. They have in fact been doing precisely that through their entire history - and given plans for GigaFactory Berlin, the rapid expansion of GigaFactory China - and the likely addition of another GigaFactory in the USA - they’ll undoubtedly manage …
Why is Ford stock so cheap?
Jan 05, 2022 · Tesla is currently sitting at a 1.1 billion market cap while Ford is at 97.1 million. When you factor in earnings, Ford is still far cheaper with a PE ratio of 34.11 compared to Tesla’s PE of 374. No matter how you look at it, when analyzing Ford vs. Tesla stock, Tesla is the more expensive investment.
Is TSLA a better buy than GM and F?
Mar 17, 2021 · Tesla shares have been up 645% in the last five years, and up 913% in the last ten. Tesla has a market capitalization of $411 billion. Ford shares are down 52% in …
Is Ford's self-driving technology better than Tesla's?
Apr 12, 2017 · Ford Motor Co. (F) sold 6.7 million cars in 2016 and booked a profit of $4.6 billion. Tesla (TSLA) sold a mere 76,000 cars and lost $675 million. Tesla’s value is stratospheric because its stock ...
Why does Ford stock trade so low?
Why is Tesla stock so high compared to other companies?
The increase in Tesla's stock price and market cap has created a financial complex of investment products that include or track the electric car maker's stock. Average trading volume in Tesla options exceeds that in S&P 500 options.Dec 2, 2021
Is Tesla more profitable than Ford?
Is Ford stock a good investment?
Is Ford undervalued?
Is Tesla bigger than Ford?
Which one is better Tesla or Ford?
What is Ford's net worth?
Why is Tesla successful?
Will Ford stock ever go up?
Is Ford stock expected to rise?
The 20 analysts offering 12-month price forecasts for Ford Motor Co have a median target of 18.50, with a high estimate of 32.00 and a low estimate of 11.80. The median estimate represents a +34.50% increase from the last price of 13.76.
Is Ford paying a dividend in 2021?
Is Ford losing market share?
Ford is losing market share, and its margins are shrinking. Ford has lost market share, and sometimes deliberately—the company ditched sedans in the U.S., as they have narrow margins. It has also been losing market share in China, the world’s largest automotive market. Furthermore, Ford’s gross profit margins and absolute gross profit have been ...
Is Ford a strong company?
Internationally, Ford isn't as strong and is seeing losses. The company also has a huge debt pile, which means high interest costs. In contrast, Tesla's net debt turned negative after its share issuances in 2020.
When did Ford start selling Model T?
When it launched the Model T in 1908, the car was the most popular of its time. However, now, over a century later, the company's stock is trading below $10. Why is Ford stock so low and can it rebound? Ford stock is much cheaper than many of the newly listed EV (electric vehicle) stocks, and its market cap is lower than NIO’s.
Is Ford a profitable company?
North America is Ford's most profitable market, but even in the U.S., most of its profits seem to come from the F-150. Internationally, Ford isn't as strong and is seeing losses. The company also has a huge debt pile, which means high interest costs.
When did Ford launch the Model T?
When it launched the Model T in 1908, the car was the most popular of its time. However, now, over a century later, the company's stock is trading below $10. Why is Ford stock so low and can it rebound? Article continues below advertisement.
Shifting gears
What Ford needs to do is prove that with real results. During the last couple of years, the automaker has declared a shift from simply building and selling cars to providing various types of mobility, which might include Uber-style rides, shuttles, shared vehicles and even bicycles.
Challenges ahead
Meanwhile, Wall Street analysts worry that US car sales, while still strong at more than 17 million per year, may have peaked, forcing Ford and other automakers to discount more in order to move the metal.
What is the price / earnings ratio?
The price / earnings ratio, or P/E, is one of the most common measures of valuation in the stock market. This is simply a company’s per-share earnings divided by its stock price. Using P/E ratio, Tesla is dramatically more expensive than other car makers like GM and Ford.
What is the P/E ratio?
The price / earnings ratio, or P/E, is one of the most common measures of valuation in the stock market. This is simply a company’s per-share earnings divided by its stock price. Using P/E ratio, Tesla is dramatically more expensive than other car makers like GM and Ford. Tesla trades for more than 1,000 times historic earnings, ...
Is Tesla a good company?
Tesla's stock has been driven to an irrational level by emotional investors who are romanticizing the company founder and the company. Tesla is a fine company but has no sustainable competitive advantage. The EV market is getting crowded, actually saturated.
Is Ford a legacy company?
Ford is an embodiment of legacy auto -- the company, which was founded more than 100 years ago, belongs to the largest players in the automobile industry, with annual sales of around $150 billion. The company has, however, not experienced a lot of growth in recent years, which is why its shares also have not performed too well -- investors have, at least, gotten a high dividend in most years.
Is Tesla a pureplay company?
Tesla is the best-known and largest EV pureplay in the world , and not surprisingly, its stock benefited a lot when investors got more interested in EV stocks during the pandemic:
What is Ford's strategy?
Ford did eventually explain what it had in mind: directing its investments away from lower-margin products (like sedans) and businesses, and toward more profitable products (trucks, SUVs, commercial vehicles, and performance models) and businesses, including new tech-enabled mobility ventures. That evolution is ongoing: 1 Ford has discontinued the Fiesta, Focus, and Taurus in North America, and will phase out the Fusion over the next couple of years. It has launched all-new versions of the Ranger and Explorer, is in the process of launching an all-new Escape, and it has several other new trucks, SUV, and crossovers set to arrive over the next couple of years -- including an all-new F-150 in 2020. 2 In Europe, Ford has pushed upscale with an all-new Focus, added a new small SUV called the Puma, and put heavy emphasis on its profitable commercial vehicle business. Progress is already visible: After a big loss in 2018, Ford Europe earned $110 million in the first half of 2019. 3 A drastic overhaul of Ford's China operation is under way, with over 30 new or overhauled products set to arrive by the end of 2021. There's still much work to be done, but Ford's losses in China were down sharply in the first half of 2019. 4 Ford is also making heavy investments in electric vehicles -- including an electric F-150 pickup -- and self-driving technology, which have helped to allay some investors' concerns about technological disruption.
Does Tesla pay dividends?
Tesla doesn't pay a dividend, and it's not likely to start anytime in the near future. But Ford pays a dividend, and it's an important part of the company's investment case.
Who is John Rosevear?
John Rosevear is the senior auto specialist for Fool.com. John has been writing about the auto business and investing for over 20 years, and for The Motley Fool since 2007. Follow @john__rosevear
