Analyzing Ford Motor (NYSE:F) and Fisker (NYSE:FSRN)

Ford Motor (NYSE:F) and Fisker (NYSE:FSRN) are both auto/tires/trucks companies, but which is the superior investment? We will contrast the two companies based on the strength of their dividends, analyst recommendations, earnings, institutional ownership, valuation, profitability and risk.

Analyst Recommendations

This is a breakdown of current recommendations for Ford Motor and Fisker, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Ford Motor	1	8	4	0	2.23
Fisker	0	0	0	0	N/A

Ford Motor presently has a consensus price target of $13.74, suggesting a potential upside of 13.05%. Given Ford Motor’s higher possible upside, analysts clearly believe Ford Motor is more favorable than Fisker.

Risk & Volatility

Ford Motor has a beta of 1.61, suggesting that its stock price is 61% more volatile than the S&P 500. Comparatively, Fisker has a beta of 0.13, suggesting that its stock price is 87% less volatile than the S&P 500.

Profitability

This table compares Ford Motor and Fisker’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Ford Motor	2.21%	17.63%	2.83%
Fisker	-278.72%	-161.43%	-23.26%

Valuation & Earnings

This table compares Ford Motor and Fisker’s gross revenue, earnings per share (EPS) and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Ford Motor	$177.49 billion	0.27	$4.35 billion	$0.97	12.53
Fisker	$272.89 million	0.23	-$939.95 million	($2.22)	-0.02

Ford Motor has higher revenue and earnings than Fisker. Fisker is trading at a lower price-to-earnings ratio than Ford Motor, indicating that it is currently the more affordable of the two stocks.

Insider & Institutional Ownership

58.7% of Ford Motor shares are held by institutional investors. Comparatively, 33.6% of Fisker shares are held by institutional investors. 0.4% of Ford Motor shares are held by company insiders. Comparatively, 26.3% of Fisker shares are held by company insiders. Strong institutional ownership is an indication that endowments, hedge funds and large money managers believe a stock will outperform the market over the long term.

Summary

Ford Motor beats Fisker on 12 of the 13 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 Fisker

Fisker Inc. develops, manufactures, markets, leases, or sells electric vehicles. It operates through three segments: The White Space, The Value Segment, and The Conservative Premium segments. The company is also involved in asset-light automotive business. In addition, it offers fisker flexible platform agnostic design, a process that develops and designs electric vehicles in specific segment size. The company was incorporated in 2016 and is headquartered in Manhattan Beach, California.