Over the past three months, one of the top growth leaders in the S&P 500 index has been the automotive industry (Automobiles) +8.4%.
Some of the largest companies in this industry (by market capitalization) are: General Motors ($54.3B) and Ford Motor ($47.4B). They both manufacture cars and components.
According to the latest quarterly reporting data, we analyzed each company’s profitability, strength, and efficiency criteria according to the methodology of Stanford University professor Joseph Piotroski.
As you can see, General Motors is performing better in terms of fundamentals and is superior to Ford Motor in terms of sustainability.
Over the past 3 months, General Motors shares have risen by +14.9%, while Ford Motor has fallen by -2.9% (the S&P 500 index has risen by +6.4%). General Motors has outperformed its closest competitor and demonstrated better results compared to the index.
So, the winner in today’s battle is General Motors (GM). General Motors’ business looks healthier in terms of liquidity, and its shares show better returns.
* This is not an investment recommendation. It is up to each individual to decide which criteria to favor when making an investment decision, taking into account their goals and individual risk tolerance.
