Ford Motor Company (F)vs General Motors Company (GM)

Quick verdict

The cleanest dividing line between these two Detroit rivals over the trailing period is the bottom line: Ford lost money and General Motors did not. Ford's twelve months to March 2026 produced a net loss of $6.1bn on revenue of $189.9bn, with an operating loss of $7.2bn; GM's twelve months to June 2026 delivered net income of $1.9bn on revenue of $168.4bn. That single fact governs the page — Ford has no meaningful earnings multiple, so the two cannot be judged on P/E side by side. Our factor verdicts put GM ahead on valuation and on shareholder income, with growth, quality, the balance sheet and momentum all too close to call; the overall tally is 4 to 2 in GM's favour. Both, notably, converted heavily into cash, at free cash flow yields of 16.0% and 18.7% respectively at the 4 September 2026 close.

At-a-glance comparison

Business model and revenue mix

Both firms pair a capital-intensive vehicle manufacturer with a captive lender, which is why their balance sheets carry far more debt than an ordinary industrial and why cash-flow measures often read better than accounting profit. Ford designs and builds cars, trucks and SUVs under the Ford and Lincoln marques and finances customers and dealers through Ford Credit; on revenue of $189.9bn in the twelve months to March 2026 it is the larger of the pair by turnover. General Motors sells Chevrolet, GMC, Cadillac and Buick vehicles alongside the GM Financial lending arm, turning over $168.4bn in the twelve months to June 2026. Both report a genuine operating-income line, so the margins quoted here are as filed. Ford's share count of roughly 4.07bn against GM's 877m explains the very different headline share prices, $14.62 versus $87.76.

Valuation

On the measures that still work when one company is loss-making, GM takes the verdict. Ford trades on 0.31 times trailing sales and 1.59 times book at the 4 September 2026 close; GM trades on 0.46 times sales but a cheaper 1.24 times book. With Ford posting a $1.55 trailing loss per share, it has no earnings multiple to quote, and GM's 39.2 times trailing earnings — inflated by a net margin of just 1.16% — is not a like-for-like comparison, so book value and cash generation do more work here. On free cash flow the pair are closer than the profit figures suggest: Ford yields 16.0% on a $59.5bn market capitalisation, GM 18.7% on $77.0bn. GM's combination of the lower price-to-book and the higher cash yield is what settles the factor.

Growth profile

Neither side separates itself on the top line, and the verdict is a tie. Measured from fiscal 2022 to fiscal 2025, Ford compounded revenue at 5.82% a year against GM's 5.27%; stretch the window back to the 2020 base year — a pandemic-depressed starting point for both, which flatters the figures — and GM leads at 9.10% against Ford's 8.05%. The difference either way is within the noise of two businesses selling into the same North American market. Earnings growth tells a bleaker story where it can be measured at all: GM's earnings per share shrank at 18.9% a year over three years and 5.46% a year over five. For Ford, no equivalent rate exists, because a trailing loss of $1.55 per share cannot be compared with an earlier profit as a growth rate.

Profitability and quality

Here the gap is qualitative rather than a matter of degree. Ford's twelve months to March 2026 show a gross margin of 8.04% collapsing into an operating margin of minus 3.77% and a net margin of minus 3.20% — an operating loss of $7.2bn and a net loss of $6.1bn. GM's twelve months to June 2026 were profitable but thin: a 1.08% operating margin and a 1.16% net margin, $1.8bn of operating income and $1.9bn of net income on a much larger revenue base. Our quality verdict is nonetheless a tie, and the reason is cash: Ford generated $9.5bn of free cash flow and GM $14.4bn, both far above reported earnings, as heavy depreciation and captive-finance accounting drive a wide gap between profit and cash in this industry.

Balance-sheet risk

Liquidity looks much alike, and the factor is a genuine tie. At 31 March 2026 Ford held $17.6bn of cash with a current ratio of 1.09; at 30 June 2026 GM held $20.1bn with a current ratio of 1.14. Shareholders' equity stands at $37.5bn for Ford and $62.0bn for GM, which is why Ford's price-to-book of 1.59 sits above GM's 1.24 despite the smaller market capitalisation. Interest coverage has been withheld for Ford because the figure is not interpretable for a manufacturer with a captive finance arm reporting an operating loss — borrowing costs at Ford Credit are a cost of revenue rather than a solvency signal. Both companies generated free cash flow comfortably in excess of their reported profits during the trailing period, which is the more useful cushion to note.

Price performance and shareholder returns

Shareholder returns come in very different shapes. Ford pays the larger dividend by some distance — a 4.1% yield on $0.60 per share over the trailing twelve months — but that distribution was made against a net loss, so it was not covered by earnings in the period. GM's dividend yields just 0.75% on $0.66 per share, with a payout ratio of 59.98% of its slim trailing earnings, yet its buyback yield of 8.83% dwarfs Ford's 0.52% and is the reason the income verdict goes to GM: the total cash returned per share is materially higher. On accounting returns, Ford's return on equity is minus 14.82% against GM's 2.99% — the latter positive but modest, and lifted somewhat by the buybacks that have been shrinking GM's equity base.

Which stock fits which investor

The style tags point in different directions: Ford reads as income and mature, GM simply as mature. An investor whose priority is a large, visible dividend cheque will note Ford's 4.1% yield, while accepting that it was paid out of a loss-making period. One focused on total cash returned, or on the lower price-to-book of 1.24 and the higher 18.7% free cash flow yield, is looking at GM, which takes our value and income verdicts. Revenue growth marginally favours Ford on the three-year measure, at 5.82% against 5.27%. Quality, the balance sheet and momentum are all ties, and on a 4-to-2 overall tally GM edges the page — but anyone weighing these two should treat Ford's trailing loss and GM's 1.16% net margin as the central risk in both cases.

• Value: GM
• Growth: F
• Income: GM
• Quality: Too close to call

Frequently asked questions

Which of Ford and GM was profitable over the trailing period?

General Motors. In the twelve months to June 2026 GM earned net income of $1.9bn on revenue of $168.4bn, or $2.24 per share. Ford, over the twelve months to March 2026, reported a net loss of $6.1bn on revenue of $189.9bn, equivalent to a loss of $1.55 per share.

Why is there no P/E ratio shown for Ford?

Because Ford's trailing earnings are negative. With a loss of $1.55 per share in the twelve months to March 2026, a price-to-earnings ratio would be meaningless. Ford is instead assessed on 0.31 times sales, 1.59 times book and a 16.0% free cash flow yield, all as at the 4 September 2026 close.

Which stock pays the bigger dividend?

Ford, at a 4.1% yield on $0.60 per share over the trailing twelve months, against GM's 0.75% on $0.66 per share. However, GM's buyback yield of 8.83% far exceeds Ford's 0.52%, which is why the income verdict goes to GM on total cash returned.

Is Ford cheaper than GM?

Not on the measures we rank. Ford is cheaper on sales at 0.31 times versus 0.46 times, but GM is cheaper on book value at 1.24 times against 1.59 times, and offers the higher free cash flow yield at 18.7% versus 16.0%. The valuation verdict goes to GM.

Which company generates more free cash flow?

GM, at $14.4bn in the twelve months to June 2026 versus Ford's $9.5bn in the twelve months to March 2026. Both figures sit well above reported profit — in Ford's case, despite a $7.2bn operating loss — reflecting heavy depreciation and captive-finance accounting.

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