Why We Pick GM Over Ford

Both companies garner the same annual sales [View in browser]( [The Spill Logo] BROUGHT TO YOU BY: [Logo]( Proprietary Data Insights Financial Pros’ Top Automotive Stock Searches in the Last Month Rank Name Searches #1 Tesla 1066 #2 Ford Motor Company 245 #3 General Motors Company 98 #4 Nio 76 #5 Toyota Motor 22 #ad [Surprising Economic “Twist." Shocking forecast.]( Brought to you by [Off-Grid Confidential]( [Invest in a Ticking Time Bomb]( [Off-Grid Confidential - Invest in a Ticking Time Bomb]( Little-known companies like Grounded Lithium (OTC: GRDAF) are challenging China's monopoly of the resource, giving investors an opportunity to participate in the next "gold rush." Grounded Lithium increased their land by more than four-fold and completed a drill test confirming lithium concentrations on their bases, which are expected to support several 20,000 tonne/yr lithium projects. [Sign up now](. Why We Pick GM Over Ford Tesla (TSLA) is still the undisputed leader in electric vehicles. But America’s biggest automakers are nipping at its heels. Today, we look at General Motors (GM). According to our proprietary Trackstar database, there was a startling surge in retail searches for the stock over the past 14 days. Ford (F) aims to go 100% electric by 2030. GM’s shooting for 2035. Interestingly, both garner the same annual sales. But GM’s stock is slightly cheaper than Ford’s. And we think GM’s a better buy… General Motors’ Business Since 1908, General Motors has produced automobiles from its headquarters in Michigan. Although GM International (GMI) sells roughly as many vehicles as GM North America, GMI barely turns a profit. This has been a perpetual problem for the company, which divested from its European operations in 2017 after 20 straight years of losses. Meanwhile, more than a decade after the financial crisis, GM’s financial arm still makes up a sizable, albeit smaller, portion of the company’s profits. The company’s inventory has recently bounced back from supply chain shortages, though it’s below pre-pandemic levels. Inflation also took a bite out of profits, costing GM $5.5 billion in 2022. The company expects to spend $35 billion through 2025 on electric and automated vehicle development. Financials [Growth] Source: Stock Analysis Despite growing commodity pressure, GM has managed to improve its margins in most categories. This is largely thanks to higher sticker prices padding the bottom line. GM has a whopping $27 billion in cash on its balance sheet as it ramps up spending on research and development. Long-term debt has held steady around $15.5 billion, while divestiture debt sits around $60 billion, with another $36.8 billion due within the next year or so. Interest expenses cost the company as much as 10% of its operating income, which is a lot. Valuation [Sales] Source: Seeking Alpha GM trades for incredibly cheap based on both its price-to-earnings and price-to-cash-flow ratios. Ford is more expensive, but not by much… Growth [Revenue] Source: Seeking Alpha At first, one might assume growth is behind the discrepancy between Ford and GM. But both have roughly the same revenue growth looking backward and forward. And Ford’s earnings growth isn’t much better. Profitability [Margin] Source: Seeking Alpha GM does better than Ford across nearly every profitability measure, including returns on equity, assets, and total capital, not to mention cash from operations. [Buy THIS stock before Taiwan is attacked...]( If the United States goes to war with another nuclear armed superpower, this could have a devastating impact on your retirement portfolio. Now, even Taiwan's own foreign minister is saying that China is on the cusp of a full scale invasion. But the good news is, if China invades Taiwan, there is a way to protect yourself. [Click Here to Learn How ]([Ad] Our Opinion 8/10 We can only assume Ford trades at a higher multiple because of its more ambitious EV targets. But GM generates so much more cash for similar revenues, it’s hard to ignore the company’s value. That’s why we’re more inclined to pick GM here as we abandon post-pandemic inventory shortages and move toward an EV future. 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