GM vs F

For growth investors, Ford Motor Company (F) is the stronger pick with 1.

2% revenue growth year-over-year, versus -1. 3% for General Motors Company (GM). General Motors Company (GM) offers the better valuation at 23. 3x trailing P/E (6. 0x forward), making it the more compelling value choice. Analysts rate General Motors Company (GM) a "Buy" — based on 51 analyst ratings — the highest consensus in this comparison. The "better buy" depends entirely on your goals: growth investors should weight revenue trajectory, value investors should weight P/E and PEG, and income investors should weight dividend yield and streak.

On forward P/E, General Motors Company is actually cheaper at 6.

0x.

Over the past 5 years, General Motors Company (GM) delivered a total return of +35.

3%, compared to +31. 1% for Ford Motor Company (F). Over 10 years, the gap is even starker: GM returned +175. 0% versus F's +32. 5%. Past returns do not guarantee future results, and the stock with the higher historical return may already have its best growth priced in.

By beta (market sensitivity over 5 years), Ford Motor Company (F) is the lower-risk stock at 0.

97β versus General Motors Company's 1. 07β — meaning GM is approximately 11% more volatile than F relative to the S&P 500. On balance sheet safety, General Motors Company (GM) carries a lower debt/equity ratio of 2% versus 5% for Ford Motor Company — giving it more financial flexibility in a downturn.

By revenue growth (latest reported year), Ford Motor Company (F) is pulling ahead at 1.

2% versus -1. 3% for General Motors Company (GM). On earnings-per-share growth, the picture is similar: General Motors Company grew EPS -48. 7% year-over-year, compared to -241. 1% for Ford Motor Company. Over a 3-year CAGR, F leads at 5. 8% annualised revenue growth. Higher growth typically commands a higher valuation multiple — check whether the premium P/E or P/S is justified by the growth rate using the PEG ratio.

General Motors Company (GM) is the more profitable company, earning 1.

5% net margin versus -4. 4% for Ford Motor Company — meaning it keeps 1. 5% of every revenue dollar as bottom-line profit. Operating margin tells a similar story: GM leads at 1. 6% versus 1. 4% for F. At the gross margin level — before operating expenses — F leads at 12. 2%, reflecting greater pricing power or product mix advantage. Stronger margins indicate durable pricing power, lower cost of revenue, or higher mix of software/services. They are one of the clearest signs of business quality.

On forward earnings alone, General Motors Company (GM) trades at 6.

0x forward P/E versus 7. 4x for Ford Motor Company — 1. 4x cheaper on a one-year earnings basis. Analyst consensus price targets imply the most upside for GM: 20. 5% to $91. 75.

All stocks in this comparison pay dividends.

Ford Motor Company (F) offers the highest yield at 6. 4%, versus 0. 9% for General Motors Company (GM).

For long-horizon retirement investors, General Motors Company (GM) is the stronger choice — it scores higher on the combination of lower volatility, dividend reliability, and long-term compounding (low volatility (β 1.

07), 0. 9% yield, +175. 0% 10Y return). Both have compounded well over 10 years (GM: +175. 0%, F: +32. 5%), confirming both are viable long-term holds — but the lower-volatility option typically results in less emotional selling during corrections. Retirement portfolios generally favour predictability over maximum returns. Consult a financial advisor before making allocation decisions.

Both stocks operate in the Consumer Cyclical sector, making this a peer-level intra-sector comparison — the same macro tailwinds and headwinds will affect both.

In terms of investment character: GM is a mid-cap quality compounder stock; F is a mid-cap income-oriented stock. These fundamental differences mean investors should not choose between them on a single metric — the "better stock" depends entirely on which of these characteristics aligns with your investment strategy.