Contrasting Fisker (NYSE:FSRN) & Ford Motor (NYSE:F)

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

Analyst Recommendations

This is a summary of current ratings and price targets for Fisker and Ford Motor, as provided by MarketBeat.

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

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

Valuation & Earnings

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

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

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.

Profitability

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

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

Institutional and Insider Ownership

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

Risk & Volatility

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

Summary

Ford Motor beats Fisker on 12 of the 13 factors compared between the two stocks.

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.

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.