Are you thinking about investing in car companies? Ford and General Motors (GM) are two big names in the auto world. Both did well in their Q2 2025 earnings, even with some challenges. Let’s see which one might be a better choice for your money.
Why Look at Car Stocks Now?
Tech stocks are getting expensive, so some investors are looking at the auto industry for good deals. Ford and GM beat their Q2 expectations, making them interesting options. They are also dealing with new tariffs, which add some cost, but both companies are still strong.
How Did Ford Do in Q2?
Ford released its Q2 results on Wednesday. Its sales went up 5% to $46.94 billion, which was more than the expected $41.72 billion. Earnings were $0.37 per share, better than the predicted $0.34, but lower than last year’s $0.47 due to $800 million in tariff costs. Ford brought back its yearly goals, expecting $6.5-$7.5 billion in adjusted earnings and $3.5-$4.5 billion in free cash flow, despite a $2 billion tariff hit.
How Did General Motors Do in Q2?
GM shared its Q2 results on Tuesday. Sales were $47.12 billion, above the expected $46.24 billion, but down 2% from last year. Earnings were $2.53 per share, beating the $2.39 estimate but down from $3.06 last year, with a $1.1 billion tariff cost. GM still expects $8.2-$10.1 billion in adjusted earnings for the year.
Comparing the Two
- Earnings and Value: GM has a better earnings outlook and a lower price-to-earnings (P/E) ratio of 5.5X, while Ford’s is 9.5X. This makes GM look like a better value.
- Dividends: Ford offers a big 5.52% dividend yield, much higher than GM’s 1.15% and the S&P 500’s 1.16%. This is great for people who want income.
- Stock Performance: Ford’s stock is up 11% this year to about $11, beating the S&P 500’s 8%. GM’s stock is flat at $53. Over five years, GM is up over 100%, while Ford is up 65%.
Which is the Better Investment?
Both Ford and GM are solid choices with a Zacks Rank #3 (Hold). GM looks better for growth because of its strong earnings. But Ford is a good pick for income investors because of its high dividend. It depends on what you want: growth or steady income.
Final Thoughts
Ford and GM are doing well despite tariff challenges. GM might be the better long-term investment, but Ford’s dividend could attract income seekers. Think about your goals and check the latest updates before deciding!