Ford Motor (NYSE:F – Get Rating) and Polestar Automotive Holding UK (NASDAQ:PSNY – Get Rating) are both auto/tires/trucks companies, but which is the better investment? We will compare the two businesses based on the strength of their profitability, earnings, institutional ownership, dividends, analyst recommendations, valuation and risk.
Profitability
This table compares Ford Motor and Polestar Automotive Holding UK’s net margins, return on equity and return on assets.
Net Margins | Return on Equity | Return on Assets | |
Ford Motor | 1.75% | 19.99% | 3.41% |
Polestar Automotive Holding UK | N/A | N/A | N/A |
Volatility & Risk
Ford Motor has a beta of 1.54, indicating that its stock price is 54% more volatile than the S&P 500. Comparatively, Polestar Automotive Holding UK has a beta of 1.38, indicating that its stock price is 38% more volatile than the S&P 500.
Analyst Ratings
Sell Ratings | Hold Ratings | Buy Ratings | Strong Buy Ratings | Rating Score | |
Ford Motor | 3 | 5 | 6 | 0 | 2.21 |
Polestar Automotive Holding UK | 1 | 2 | 3 | 0 | 2.33 |
Ford Motor currently has a consensus target price of $14.78, indicating a potential upside of 7.59%. Polestar Automotive Holding UK has a consensus target price of $8.40, indicating a potential upside of 153.01%. Given Polestar Automotive Holding UK’s stronger consensus rating and higher possible upside, analysts clearly believe Polestar Automotive Holding UK is more favorable than Ford Motor.
Valuation & Earnings
This table compares Ford Motor and Polestar Automotive Holding UK’s gross revenue, earnings per share (EPS) and valuation.
Gross Revenue | Price/Sales Ratio | Net Income | Earnings Per Share | Price/Earnings Ratio | |
Ford Motor | $158.06 billion | 0.35 | -$1.98 billion | $0.71 | 19.35 |
Polestar Automotive Holding UK | $2.46 billion | 2.88 | -$465.79 million | N/A | N/A |
Polestar Automotive Holding UK has lower revenue, but higher earnings than Ford Motor.
Insider and Institutional Ownership
49.7% of Ford Motor shares are held by institutional investors. Comparatively, 1.3% of Polestar Automotive Holding UK shares are held by institutional investors. 0.8% of Ford Motor shares are held by insiders. Comparatively, 0.0% of Polestar Automotive Holding UK shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock will outperform the market over the long term.
Summary
Ford Motor beats Polestar Automotive Holding UK on 8 of the 12 factors compared between the two stocks.
About Ford Motor
Ford Motor Company develops, delivers, and services a range of Ford trucks, commercial cars and vans, sport utility vehicles, and Lincoln luxury vehicles worldwide. It operates through Ford Blue, Ford Model e, and Ford Pro; Ford Next; and Ford Credit segments. The company sells Ford and Lincoln vehicles, service parts, and accessories through distributors and dealers, as well as through dealerships to commercial fleet customers, daily rental car companies, and governments. It also engages in vehicle-related financing and leasing activities to and through automotive dealers. In addition, the company provides 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. Further, it offers wholesale loans to dealers to finance the purchase of vehicle inventory; and loans to dealers to finance working capital and enhance dealership facilities, purchase dealership real estate, and other dealer vehicle programs. The company was incorporated in 1903 and is based in Dearborn, Michigan.
About Polestar Automotive Holding UK
Polestar Automotive Holding UK PLC manufactures and sells premium electric vehicles. The company was founded in 2017 and is headquartered in Gothenburg, Sweden.
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